New Zealand government considers wage subsidy for Auckland if lockdown persists

Early Wednesday morning in Asia, The Stuff came out with the news while suggesting wage subsidy for Auckland if lockdown announced on Tuesday persists. The news relies on the comments conveyed by New Zealand’s Finance Minister Grant Robertson.

Key quotes

Finance Minister Grant Robertson has met with Treasury officials to consider regionally targeted economic support for Auckland, should the new level 3 lockdown last beyond Friday.

Robertson confirmed to Stuff this could involve a regionally targeted wage subsidy extension.

A form of wage subsidy has been in place in New Zealand since March. It involves paying employees a subsidy, based on whether they’re full or part-time, to keep employees on staff.

The deadline to apply for that extension is currently September 1.

Prime Minister Jacinda Ardern has previously ruled out extending the scheme beyond that date, but that was before the most recent resurgence of coronavirus (COVID-19).

FX implications

Following the news, NZD/USD ticks up from 0.6570 to 0.6575 while repeating late-Tuesday bounce from the same level that was previously touched on July 21.