6. Question No. 6—FinanceHon TODD McCLAY (National—Rotorua) to the Minister of FinanceQuestion No. 6—Finance6. Hon TODD McCLAY (National—Rotorua) to the Minister of Finance: Is he concerned with a report from the Restaurant Association who have said 1000 of their members are on the brink of closure without additional support; if so what additional targeted action will his Government take to save these businesses in the hospitality retail and event sectors?Hon GRANT ROBERTSON (Minister of Finance): The loss of businesses and jobs anywhere in the economy amid the uncertainty created by COVID-19 is concerning. That's why the Government has responded quickly and decisively to put in place support such as the wage subsidy scheme to help firms keep operating and help keep people connected to their jobs. In answer to the second part of the question as we have done continually through this pandemic we will update and expand our support to businesses and workers to ensure it is adequate. During this latest outbreak we've expanded the coverage of the Resurgence Support Payment to include new businesses as well as modified it into a three-weekly payment to recognise the extended period of alert level restrictions. The way that these supports are structured including criteria around revenue drops act as a de facto targeting to sectors such as those mentioned in the member's question in terms of the support that they have received.Hon Todd McClay: Thank you. Why has a wage subsidy not been paid to 37000 businesses who have waited five weeks and is he aware of the significant financial and mental distress this is causing?Hon GRANT ROBERTSON: I'm not 100 percent sure how that relates to the primary question that the member's asked but as the member is well aware we've traversed this matter in the House before. In large part this is a data-matching exercise between Inland Revenue and the Ministry of Social Development in particular for those who are sole traders whose tax code with Inland Revenue does not indicate that they are sole traders. The member and his party have been very keen to make sure that the wage subsidy scheme has integrity measures built into it. This is one of those integrity measures. I have been raising consistently with the Ministry of Social Development and Inland Revenue my desire to see these resolved quickly. I would note that 91 percent of applications are being processed within the three-day period indicated.Hon Todd McClay: Is it correct that the Government was asked on 9 June by the events sector for assistance with an insurance scheme that would've paid $20 million to its members if New Zealand was placed into COVID level 4 and that his Government has said no to this help?Hon GRANT ROBERTSON: Mr Speaker again asking really whether or not that is relevant to the primary question. But we've had ongoing discussions with the events sector going back all the way through to last year. There have been calls for a number of different types of underwriting schemes. At this stage the Government has decided not to go down that path because clearly it would be an enormous precedent setting exercise. I do know that some local councils have taken that on. I would also note that the Government has provided significant assistance to the events sector via for example the $50 million fund that's gone to regional tourism operations to put on events and we continue to work with the sector to see how else we can support them.SPEAKER: Just before I ask Mr McClay to ask his next supplementary I want to make it clear to the Minister of Finance that judgments as to relevance of questions are mine and not his and his asides are not helpful. In the latest case he is plainly wrong.Hon Todd McClay: Thank you Mr Speaker. Is it fair that businesses currently in level 2 can still apply for the wage subsidy but that Auckland businesses will not be eligible when they go to level 2 even though their need is perhaps greater and will he change this policy setting for Auckland?Hon GRANT ROBERTSON: The wage subsidy scheme has always been related to levels 3 and 4 where there are a significant number of businesses who either cannot trade or trade significantly below where they would normally want to do. The Government has put in place the Resurgence Support Payment that is available at level 2 or above to support businesses with fixed costs that are more in line with what the restrictions are at alert level 2 and as we have said that Resurgence Support Payment is now available on a three-weekly basis.Hon Stuart Nash: Can he please advise if the Small Business Cashflow (Loan) Scheme which is interest free for two years is available to businesses in the hospitality sector?Hon GRANT ROBERTSON: Yes I can confirm that the small business cashflow scheme is open. It is also open to anybody who has already drawn down the funding and paid it back or to those who haven't drawn down the full amount of funding and they can top up to that. It is a scheme that is still attracting a number of applications every week.Hon Todd McClay: What does he say to the owners of the 1000 restaurants that are reportedly about to close after doing everything that his Government has asked of them and does he think this sacrifice could be avoided with additional targeted support not just more debt?Hon GRANT ROBERTSON: What I say to those businesses is that as the Government has done throughout the pandemic we will continue to work with them. One of the things I do know is that when we saw similar predictions during the first lockdown the actual result was that those businesses ended up busier than ever when New Zealand was at alert level 1 to the point that the same organisation mentioned in the member's primary question was approaching us about the fact that they didn't have enough staff to meet the demand that was happening during alert level 1. What the answer here is to make sure we continue to take the same response that the Government has taken throughout the pandemic which is that a strong public health response is the best one for the economy overall. Point of order Mr Speaker. Can I ask you to reflect in terms of the earlier exchange that we had around the question and perhaps come back to me or to the House more broadly? You've previously ruled around the relationship between two parts of a question and obviously the second part of this question is much wider than the first part of the question and so I just ask you to reflect on what it might mean in terms of questions and supplementaries.Hon Michael Woodhouse: Speaking to the point of order just in your considerations of that I think the second part of that question is based on a belief honestly held that the restaurant industry is directly affected by what goes on in the event industry. For example a sold-out test at Eden Park would indeed fill the cafes and restaurants in Mount Eden. It is I think a direct nexus to the first part of the primary question.Hon GRANT ROBERTSON: Speaking further to the point of order I would note for the member that that organisation is called the Restaurant Association and my understanding about that organisation is that it represents restaurants as opposed to the retail and event sectors.SPEAKER: I think the Minister of Finance is dancing on the head of a pin and I feel no need to—Hon Gerry Brownlee: Must be a bloody big pin!Hon Simon Bridges: Well it is about restaurants!SPEAKER: Well Thursday afternoon Mr Bridges and Mr Brownlee. I understand your wish to get early planes but we'll just leave it for now shall we? I shall punish you by making you stay here. I'll go back to the Minister of Finance and tell him that I don't need any more time to reflect. My ruling stands.