Peters: NZ First won't support more public holidays

Wednesday, 20 May 2020

Deputy Prime Minister Winston Peters has seemingly put a stop to suggestions New Zealand could have more public holidays, to encourage domestic tourism.

The Government had said it was giving “active consideration” to the idea to boost spending and help the embattled tourism sector, which is facing a significant downturn due to the impact of Coivd-19.

But Peters said New Zealand First would not support the idea.

He said New Zealand business owners were under real financial strain.

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Winston Peters said another public holiday would mean too much cost to business.

'We know that business owners are not paying themselves so they can keep their staff going, and many are paying their bills but not paying themselves. That is why we can't support extra public holidays - they come at a cost to businesses and workers.

'It’s another day of no production, when production is well down due to Covid. For many businesses it’s a day of no income when they need to pay their bills. Holidays are great, but it will cost small businesses, and will cost thousands of workers their jobs - NZ First understands that.'

Without New Zealand First's support, it would be difficult for the Government to pass the required legislation.

Prime Minister Jacinda Ardern said she was interested in opinions and as yet nothing was ruled in or out.

BusinessNZ chief executive Kirk Hope said the idea had “pros and cons”.

“We want to support things that can support the tourism industry getting up and running but the key to this is not to impose cost on other businesses and other industries as a consequence of that.”

He said it was possible that a framework could be drafted that did not put the costs back on businesses.

But the tourism sector was working on a range of other ideas to help it survive, too, he said.

'It's important that we are thinking about how we best support the tourism sector right now.'

Economist Brad Olsen agreed more holidays would not necessarily be the way to help the rest of the economy.

“With more than half the labour force currently supported by the Government’s wage subsidy, businesses are already in a precarious position.

'Having to pay out another statutory holiday and having less production will add to the burden on businesses, unless the government also provides some support to businesses, which was generally left out from the Budget.”

Michael Barnett, chief executive of the Auckland Business Chamber, said it was a 'leap' to move from needing to support domestic tourism to giving everyone public holidays.

He said it might also be possible to encourage more flexibility with the annual leave employees were already entitled to. People could be encouraged to take single days off throughout the year to create their own long weekends, rather than relying on the Government imposing some, he said.

Public holidays were part of the package of costs of employing people, Barnett said.