11. Question No. 11—Small BusinessHon TODD McCLAY (National—Rotorua) to the Minister for Small BusinessQuestion No. 11—Small Business11. Hon TODD McCLAY (National—Rotorua) to the Minister for Small Business: Does he stand by all the Government's actions and statements regarding small business?Hon STUART NASH (Minister for Small Business): Yes especially the $12.1 billion package to support New Zealanders and their jobs from the domestic and global impact of COVID-19. We are moving quickly to help people stay in work and reduce the hit to businesses. The global economic impact of COVID-19 on New Zealand's economy is going to be significant so we are acting now to soften that impact. I thank the Prime Minister and the Minister of Finance for their leadership and I'm incredibly proud to be part of a team that has taken the tough calls but the right calls.Hon Todd McClay: What advice has he received on the economic cost that COVID-19 will have on New Zealand's small businesses?Hon STUART NASH: I haven't received any advice on that to date.Hon Todd McClay: What advice has he received on the number of jobs in small businesses likely to be lost as a result of the economic shock caused by COVID-19?Hon STUART NASH: I think the Prime Minister and the Minister of Finance have both answered that question.Hon Todd McClay: I raise a point of order Mr Speaker. I asked what advice he had had not others.SPEAKER: I think the member can rephrase his answer to address the question.Hon STUART NASH: At this stage we are unaware of how many jobs will be lost. What we do know is that a number of jobs will be lost. We think this is greater than the impact of the global financial crisis and the unemployment then was around about 6.7 percent.Hon Todd McClay: What advice has he received on the number of small businesses that are likely to close as a result of the economic shock caused by COVID-19?Hon STUART NASH: I haven't received any advice—it's early days yet—but we have put a substantial package in place to lessen the blow to a lot of small to medium businesses—keeping in mind businesses with 19 or less employees make up about 97.5 percent of all businesses in this country.Hon Todd McClay: Does he continue to support the proposed increase to the minimum wage on 1 April even though it is projected to impose a $300 million cost on businesses?Hon STUART NASH: Yes.Hon Todd McClay: Does it concern him that the cost of the 1 April minimum wage increase will put additional unnecessary economic pressure on small businesses because of COVID-19 and that more jobs and businesses will likely be lost as a result?Hon STUART NASH: I'd just say: ref. Macroeconomic Stabilisers 101. Hon Iain Lees-Galloway: Will it be important to small businesses that New Zealanders continue to be able to spend in their local economies and is it true that the people on the lowest incomes are most likely to spend in their local economy? Hon STUART NASH: That's a very good point. An increase in the minimum wage will in fact put more money in the back pockets of those who are on obviously the lowest wages. What all the research and all the literature and all the case studies show is that when people on the lowest wages have more money they actually spend it.