8. Question No. 8—Economic DevelopmentHon TODD McCLAY (National—Rotorua) to the Minister for Economic DevelopmentQuestion No. 8—Economic Development8. Hon TODD McCLAY (National—Rotorua) to the Minister for Economic Development: Does he stand by all the Government's policies in relation to economic development? Hon PHIL TWYFORD (Minister for Economic Development): Yes especially the $12.1 billion package announced yesterday to cushion the blow from the global COVID-19 pandemic and speed up the economic recovery. The announcements made yesterday show that we're focused on helping people stay in work and supporting our businesses and the people most vulnerable to COVID like the elderly. This of course is all in addition to the extra $12 billion the Government has already committed for infrastructure through the New Zealand Upgrade Programme. Hon Todd McClay: What advice has he sought or received on the number of job losses that will be caused by COVID-19? Hon PHIL TWYFORD: The Government has shared with the Opposition and the public the advice that we've had that this is almost certainly going to result in a recession. It's going to have a profound impact on our economy. I don't believe that precise modelling is available yet on the exact numbers of likely job losses but as the Minister of Finance and the Prime Minister have said I think repeatedly publicly this is going to hurt and there will be a very significant number of jobs lost. Hon Todd McClay: How many job losses are estimated from medium-sized businesses who are not covered by the Government's support package announced yesterday? Hon PHIL TWYFORD: I will repeat the answer that I gave to the earlier question: precise modelling is not available. The situation is moving too quickly and there are too many unknowns but I think everybody understands this is a serious economic shock perhaps more concerning and having more of an impact than the global financial crisis did. Hon Todd McClay: Why is the Government's wage subsidy announced yesterday limited to 20 employees rather than also supporting people who work in medium-sized businesses who are facing job losses of between 50 and up to 100 workers? Hon PHIL TWYFORD: Well I think as the member knows small and medium sized businesses will find the wage subsidy programme a very significant help. It is worth more than $5 billion it's going to cause a massive injection of cash into the economy over the next two to three months and it's designed to cushion the shock and help businesses transition. Hon Todd McClay: What additional policies or actions will he consider and take to save jobs given the tourism sector has said that up to 100000 jobs will be lost in tourism and accommodation following the Government's support package announcement yesterday? Hon PHIL TWYFORD: As well as the wage subsidy scheme the Government had already announced $11 million to support the tourism sector. We've done work on redeployment. Minister Jones just a little while ago explained to the House what we're doing in Tai Rāwhiti and efforts to find redeployment opportunities for particular industries and particular regions will be ongoing. We're talking with businesses directly we are visiting the regions we're talking to the key economic stakeholders and on top of the substantial announcements that were made yesterday we'll continue to work with industry to see how together we can work through this for the good of New Zealand. Hon Todd McClay: Is he aware that of the $11 million announced by the Government to support tourism $10 million was to promote New Zealand overseas so foreigners could visit us and if that's the case will that money be reprioritised and made available to medium-sized tourism businesses that are facing considerable job losses and their businesses may not survive? Hon PHIL TWYFORD: The money has been redirected; of course it won't be spent on destination marketing now but there is a commitment there to work with the industry. As the Prime Minister and the Minister of Finance have said we're not going to be able to save every job or every firm and the tourism industry is up against it right now. But we are committed to working with them to get through this so that their position when the market changes when conditions change is that they'll be there and able to take advantage of opportunities when we get through this. Hon Todd McClay: Can the Minister tell the House what that $10 million has been redirected to and when that announcement was made? Hon PHIL TWYFORD: It's been redirected to the development of a recovery plan for the industry. SPEAKER: I didn't want to interrupt the Minister at the time but there appears to be a growing habit in the House of referring to Minsters in inappropriate ways. We have on my right the Hon Shane Jones or the Minister for Regional Economic Development. Minister" is not an honorific and should not be used as such."