4. Question No. 4—Prime MinisterHon SIMON BRIDGES (Leader of the Opposition) to the Prime MinisterQuestion No. 4—Prime Minister4. Hon SIMON BRIDGES (Leader of the Opposition) to the Prime Minister: Does she stand by all her Government's statements and actions?Rt Hon JACINDA ARDERN (Prime Minister): Yes particularly our decision to expand our travel measures to prevent the spread of COVID-19 so that every person will be required to self-isolate for 14 days outside of the Pacific. We have also of course announced today additional funding to health. As part of our efforts we are dedicating $500 million directly into combatting COVID-19 nearly doubling the resources for our public health units who are of course key for our contact tracing as part of our response; an extra $50 million in support for GPs because at this point in time they are our front line; and $20 million for capacity at Healthline.Hon Simon Bridges: How many thousands of jobs are expected to be lost this year because of COVID-19?Rt Hon JACINDA ARDERN: It is very very early days in some of the projections that we're receiving from Treasury. As I said yesterday one of the early predictions from Treasury was that we will experience a greater shock to our economy than we experienced in the global financial crisis. Of course at that point my recollection is unemployment hit 6.7 percent; so that gives an order of magnitude.Hon Simon Bridges: Of the half a million - plus businesses in New Zealand how many does the Government expect will be eligible for wage subsidies?Rt Hon JACINDA ARDERN: All of them who are being affected by COVID-19. The criteria doesn't set a size limit; it does set simply a cap on how much can be claimed. That cap's at $150000. The other criteria is that it has to have had an effect of 30 percent or more on turnover. We anticipate though there will be some companies who won't be able to compare from say a year ago; so we've put flexibility on how they can demonstrate those impacts.Hon Simon Bridges: What does she say to the tourism business in my electorate with 40 staff that will now start laying off staff because the $150000 cap announced today doesn't cover all of his staff?Rt Hon JACINDA ARDERN: Well it does though cover $150000 worth. Of course that gives we hope some ability for them to retain staff work through their plans. We also hope that they are having encouraging conversations with their banks as well also with IRD and making sure they work through every avenue. That payment of $150000 will be paid out in bulk. Perhaps they may not be able to retain all of their staff in this difficult time but we do hope it makes a difference for them.Rt Hon Winston Peters: Prime Minister in confronting this viral invasion in what sense will economic recovery be best assured: one of confidence and reassurance to the public or gloom doom and naysaying?Rt Hon JACINDA ARDERN: Obviously the former. I would reflect that what we have used to build the framework for the wage subsidy scheme was actually what the member's last Government the National Government did for Christchurch and Kaikōura. So those were the frameworks that we used as the starting point—the difference of course being that those were region specific; we've had to design something for the entire country.Hon Simon Bridges: What does she say to the hotelier I've talked to today who is going to go to the wall because of the sharp downturn in tourism and with the $150000 cap is going to start laying off workers as early as this week?Rt Hon JACINDA ARDERN: Again for some large organisations—and I can't speak to specific cases but some larger organisations—we are saying that we wish to hear from them because we are looking at some specific circumstances depending on the organisation. Obviously though as a starting point that wage subsidy is in place and there are other elements of the package that do provide some relief from tax provision in particular.Hon Simon Bridges: Will the wage subsidies be backdated and if not why not?Rt Hon JACINDA ARDERN: From the day that they're announced. Basically a business can make an application immediately. We've estimated that it will take five to six days before it will be paid out but it will be paid out in a lump sum not on a weekly basis. So backdating becomes irrelevant because they get it in a bulk payment 12-week equivalent.Hon Simon Bridges: If the Government downturn lasts another six months would the Government look to extend the wage subsidies that long?Rt Hon JACINDA ARDERN: We have said that this is tranche one of our response. We gave a 12-week payment in order to give businesses some certainty. Of course we will have to continually assess the economic situation for New Zealanders and including the health situation for New Zealanders. We've also said the Budget will be the place where we have to also design New Zealand's recovery plan.Hon Simon Bridges: What does she say to businesses who have lost turnover of say 25 percent and therefore are ineligible for the job support but nevertheless will struggle in the current environment?Rt Hon JACINDA ARDERN: Even if they've only lost 25 percent in existing turnover if they can demonstrate that their projected turnover will be greater then they will be eligible.