What Alert L3 looks like for Napier

What will Alert Level 3 look like for Napier?

Alert Level 3 will continue to place a number of operational restrictions for businesses and community groups in Napier. The key principle is to continue to restrict contact as much as possible.

The key changes in Alert Level 3 for Napier include:    



  



  

restaurants/cafes will be able to provide delivery and/or pre-ordered contactless pick up takeaway services, but there will be no dine-in options; retail shops will continue to remain closed however online and “click and collect” opportunities are allowed (no face to face trading); public venues (including Council facilities such as the library, the aquatic centre and playgrounds) will continue to be closed; many Napier residents who are employed in forestry, construction and manufacturing sectors will be able to return to work provided a 1m physical distance can be maintained between staff and hygiene practices are in place; in-home services such as trade services and furniture removal will be allowed to operate provided physical distancing is maintained. This means that people can move house or complete renovations. House cleaning services are not allowed; businesses cannot offer services which involve sustained close contact, such as hairdressing and massage; where people can work from home, they will continue to do so; tourism will remain close to zero as all non-essential travel is discouraged. Staying overnight at a bach or holiday home is not allowed, and any travel should remain within the region; under Alert Level 3 it will be safe for Early Learning / Education Centres and schools w open for children up to and including year 10, with appropriate public health measures in place. All young people in years 11-13 will continue to learn at home. funerals, tangi and wedding services can take place with up to 10 people in attendance; Napier, and more specifically the city centre, will continue to be quiet as many commercial businesses continue to be closed or work remotely from home; physical distancing (2m separation) will still be required, which will continue to restrict how we work, socialise, and travel around the city.

Further information about what you can or cannot do at Alert Level 3 is available on the Covid-19 website: https://covid19.govt.nz/alert-system/alert-level-3/ Under Alert Level 3, construction will slowly start to progress their work in progress, in particular publicly funded projects. Consumers are likely to seek to reduce spend while there remains uncertainty around job stability, therefore we can expect less consumption and less capital projects (such as private development). Unemployment may rise to around 8.5% by June 2020 depending on the duration of Alert Levels 3 and 4 (pre-lockdown was 3.7%). Note that we can expect this figure to be worse once the current wage subsidy scheme stops.

Research and data Recent research informs us that:









Personal income: 42% of New Zealanders report that COVID-19 has already impacted their personal income (Source: Penrose Data survey released 9th April 2020) Major purchases: 90% of kiwis will delay making at least one major purchase under the COVID-19 conditions. The most common purchases to be deferred included recreation products (sports and computers), property and vehicles, home appliances, and furniture.

Hawkes Bay businesses: Compared to the national confidence response, HB businesses are optimistic they will survive this pandemic with 83% confident, whereas the national figure is 70% confident of survival post COVID-19. (Source: NZ Chamber of Commerce – Hawkes Bay Business Confidence Survey released 9th April 2020) Hawkes Bay Tourism: Drawing comparison to last summer, the majority of Hawke’s Bay Tourism members are coming off a positive December through February. Almost all members now predict a +60% downturn in revenue over March – May 2020 in comparison to the same time period last year (Source: Hawkes Bay Tourism survey released 6th April 2020)

What are the roadblocks and opportunities to wellbeing at Alert Level 3?

We have reviewed local and national research, and discussed the immediate future with a range of business and community groups within Napier. The key roadblocks and opportunities for Napier’s economy at Alert Level 3 are identified as follows:

Small – medium businesses The key roadblocks for all businesses in the immediate timeframe, but particularly local smallmedium businesses that tend to operate with narrower margins, are: 







General cashflow: Increasing income flows as soon as possible to cover costs and retain staff will be a priority for all businesses. Some businesses will not be able to operate at Alert Level 3 and will therefore have significant cashflow issues the longer we stay in Alert Levels 4 and 3; Commercial rent: Meeting rent payments with continued significant reductions in income and cashflow is a challenge for all businesses, particularly Napier’s smallmedium businesses that often operate on tight cashflow margins. Government financial support will provide some relief to businesses. Landlords can also assist by providing rent relief; Wages: The wage relief subsidy covers a 12 week period. Operational restrictions that last longer than that period will place significant pressure on businesses and potentially result in additional redundancies; Uncertainty: Uncertainty around what can or cannot operate under the Alert Levels, and how long these restrictions will go on for, is a key issue for businesses when planning cashflow for the future. The latest information is available on the COVID-19 website https://covid19.govt.nz/alert-system.

Hospitality 

Adapting to delivery/pre-ordered takeaway requirements: Obtaining an income source during Alert Level 3 will be a particular challenge for Napier’s hospitality industry that is affected by both the impact on the tourism sector and the physical distancing restrictions. Adapting to delivery/pre-ordered takeaway requirements while also ensuring the hygienic and safe preparation and delivery of restaurant meals will provide some income for these businesses. However, many hospitality businesses may not be able to trade until Alert Level 2.

Tourism 



Preparing for Alert Levels 2 and 1: International tourism is unlikely to recommence in 2020. Therefore Hawkes Bay Tourism is focused on realigning to attract the domestic market, including as a priority, those within a few hours’ drive of Napier such as Palmerston North and Wellington.

Hawkes Bay Airport: Napier City Council is a shareholder of Hawke’s Bay Airport (26%) along with Hastings District Council (24%) and the Crown (50%). The impact on travel both nationally and internationally is significant as a result of COVID-19.

Hawke’s Bay Airport is mid-way through its terminal upgrade. This loss of income will continue through Alert Level 3 and likely into the lower levels. Completing the terminal upgrade to support domestic tourism and our local business opportunities as we move down the Alert Levels is a priority. Hawke’s Bay Airport is working with its shareholders and bank in relation to funding of the terminal and its projected operating shortfall for the coming financial year.

Construction 

Private investment: Design consultants and construction contractors that heavily rely on private projects will be at risk from reduced consumer confidence and spending.

Smaller domestic projects may be cancelled or placed on hold until there is more certainty around sustainability of incomes. This will potentially impact smaller, local suppliers to a greater extent than larger suppliers that have a relatively diversified forward work programme.

Community wellbeing 

Social support: Welfare needs in our community are likely to increase as restrictions continue (albeit at a lesser level) and businesses increasingly find it difficult to support the retention of staff. Economic, social and cultural wellbeing are interdependent and the loss of employment or reduced income will place additional pressures on households. Supporting businesses to retain staff will reduce unemployment, however increased demand for social services will likely also be necessary. There will be an immediate welfare need as people transition from employment to accessing government support. Established social services may struggle to meet demand or provide services due to restrictions and / or negative impacts on their own organisations.











Higher stress / mental wellbeing: Ongoing restrictions on movement (particularly for vulnerable people), uncertainty, and loss of income will place additional stress on households and individuals resulting in potential increased loneliness, impacts on mental wellbeing, and potential breakdown of relationships. Continued advocacy and support in this area will be important to reduce potential health issues.

Family violence and crime: Through the Alert Level 4 lockdown period, reported family violence has remained fairly stable in Hawke’s Bay, however additional pressure on households may see this increase in Alert Level 3. Although residential theft has reduced, theft of commercial premises has increased as they are generally left vacant. This trend is likely to continue as many businesses’ physical premises will remain closed at Alert Level 3. Further, ongoing restrictions on work and movement will likely reduce compliance with the Alert Level requirements.

Active lifestyles: Continued closure of the aquatic centre, indoor sports courts, and gyms, together with the restrictions on winter school and club sports, has the potential to impact on the health and wellbeing of Napier’s communities while in Alert Level 3.

Many people are relying on streets and off street pathways to maintain their fitness.

This comes with challenges in retaining appropriate physical distancing at Alert Levels 3 and 2.

Proximity sensitivity: The message at Alert Level 3 is to continue to keep your bubble small, and to apply physical distancing of 2m. This ongoing messaging is likely to result in heightened sensitivity about physical connection and contact, and this will impact on how the community will wish to connect with services and each other. This will need to be accommodated both in service delivery and facility use and in longer term facility design (e.g. contactless doors). There are positive spinoffs for increased accessibility for those with mobility issues.

Funding of community organisations: As gaming venues are closed, gaming societies have lost their income source and have therefore suspended funding applications.

Other funding sources for community groups are also on hold as the implications of the COVID-19 pandemic become clear. The halt in funding provides uncertainty in planning and viability of community organisations.

What can Napier do to assist recovery in the short-term?

1. “Make a Plan” We encourage all businesses, households and individuals to Make a Plan to transition out of lockdown and into a “new normal” for Napier. This includes identifying the roadblocks and opportunities specific to you, and how you can respond. Together, we can plan to reduce the impacts of COVID-19 on our community.

Key questions to answer when you develop your plan:   

How can you maintain physical distancing?

For businesses, how can you build in contact tracing tools or mechanisms to keep track of your supply chains and customers for businesses?

For households and individuals, how will you keep track of where you have been, when, and who you have been in contact with?

The government will be releasing a “self-accreditation scheme” for businesses so you can ensure you are operating safely at Alert Level 3. In the meantime, make a plan that addresses the key principles of Alert Level 3 so you are prepared.

Napier City Council supports this objective through the following initiatives:

Recovery planning website information Lots of support and advice is available to help you to help yourself transition from Response to Recovery from the impacts of COVID-19. This is available from central government, Hawkes Bay Business Hub and other avenues. Support is available for individuals, households, businesses and community organisations.

Visit www.napier.govt.nz (keyword search #recoveryplan) for more information and links to helpful advice that will help you Make a Plan.

Advice for Food licensed premises Napier City Council is in direct contact with our hospitality businesses to encourage them to Make a Plan for Alert Levels 3 and 2. We are connecting businesses with information and support from central government, Hawkes Bay Business Hub and other sources. Our Environmental Health Officers are also giving tailored advice and support to individual premises to operate at Alert Levels 3 and 2. This includes keeping records for contact tracing; food preparation hygiene; physical distancing; and keeping surfaces clean.

Building and resource consent processing To increase certainty for the construction industry, NCC has continued to promptly process building and resource consents remotely during the Alert Level 4 lockdown period, and this will extend through Alert Level 3. Approved building consents will enable construction to commence as soon as restrictions are lifted - without a lag time. Construction will be able to commence at Alert Level 3 so approved consents will assist people to get back to work on construction projects sooner. Consents required to enable recovery (such as repurposing existing business premises to enable diversification) will be prioritised on a case-by-case basis.

Airport terminal Napier City Council is working alongside Hawkes Bay Airport Limited to investigate options for completion of the terminal upgrade, including seeking funding from the Government’s Crown Infrastructure Partners as a “shovel ready” project. This would allow the completion of the terminal in preparation to welcome the domestic tourist market in coming months.

Concurrently, the three shareholders are reviewing the financial position of the airport.

Treasury is preparing a report to Cabinet Ministers by the week ending Friday 17th April in relation to funding options for the projected shortfall over the coming year, and options for

funding the completion of the terminal. A further meeting is scheduled with all shareholders to review and discuss options in the week beginning Monday 20 April.

Napier City Recovery Plan Napier City Council will work alongside other Hawkes Bay councils; business sector groups iwi; maori businesses; youth and community organisations to develop a plan for the mediumlong term that will support the Napier community, and Hawkes Bay as a region, to recover from the effects of COVID-19 on the community and to evolve to a new City Vision. This will include prioritising infrastructure projects to ensure they contribute to the long term, resilient recovery of our city. Prioritising Council’s community funding to support agencies that provide services to those impacted by COVID-19 will allow resources to be targeted appropriately.

2. “Support Local” Immediate constraints on cashflow can be make or break for Napier’s businesses. Small reduction in costs and outgoings, and increases in income, can give businesses the breathing space to Make a Plan and survive through Alert Level 3. This will reduce the impact for the wellbeing of Napier’s community and we all have a part to play.

“Support Local” also means continuing to support the vulnerable members in our community; keeping in touch with your local sports or arts club; and to share and celebrate the “good news stories” in Napier.

For ideas and links to help Support Local, visit www.napier.govt.nz (keyword search #recoveryplan).

Napier City Council supports this objective through the following initiatives:

Support Local campaign NCC is partnering with Hastings District Council, Business Hawkes Bay and local business associations to encourage our community to Support Local businesses. This will assist in maintaining cashflow for those small-medium businesses that are more vulnerable to decreases in income, and for larger businesses that are important employers for Napier locals. Information is available through social media channels and www.napier.govt.nz (keyword search #recoveryplan).

Napier City Council rates and rent relief Napier City Council will be offering commercial and residential ratepayers the opportunity to seek rates postponement for the year to June 2021. Council will be consulting on an updated Rates Postponement alongside its Annual Plan 2020-21 to provide better definition around the criteria for rates postponement as it relates to COVID-19. However Council will consider requests earlier under “Special Circumstances” as outlined in the Policy. Council is considering other relief packages and will be formalizing these over the coming weeks. This

will support a better outcome to enable local businesses and community groups to be in a better financial position after the lockdown period.

The Napier City Recovery Plan website provides advice to homeowners on government support for rates relief, including the accommodation supplement and rates rebate schemes.

Penalties for late payment of rates for the June 2020 quarter will be waived. Central Government has offered increased business support from Wednesday 15th April, including direct business consultancy services to ensure that a wider range of businesses can get the support they need.

Community facilities All Council facilities will remain physically closed during Alert Level 3. Napier Libraries has auto-renewed all books and other material to 13 June and there will be no fines during this period. Online services are still available and our libraries continue to be active and provide support through social media and other channels. The MTG and National Aquarium of New Zealand are able to provide online education and display services.

Council is investigating opportunities to facilitate safe walking and cycling across the city while retaining physical distancing, to support the health and wellbeing of Napier’s communities during the closure of indoor facilities and team sports (and into the future). This includes advocating for government funding where available.

Infrastructure projects NCC is advocating for government funding for infrastructure projects in the immediate term that:    

Are ready to go (“shovel ready”) Will support local contractors and/or enable employment of people who are now unemployed as a result of COVID-19 Will support physical distancing and healthy lifestyles e.g. walking and cycling Will contribute to Napier’s City Vision and the priorities of Napier’s community.

This will be in addition to continuing NCC’s programmed infrastructure works for the current financial year.

Stages 2 and 3 of the Recovery Plan will provide the key objectives and recovery initiatives for infrastructure projects in the medium-long term.

Landlord and Property Developer Forums NCC is facilitating forums with commercial landlords and property developers to encourage recovery planning in this sector. This includes advocating for agreements around commercial rent relief (to retain commercial tenants particularly in the city centre that will contribute to our shared economic recovery), identification of key roadblocks and opportunities in the mediumlong term, and priorities as Napier transitions to a new City Vision. The outcomes of these forums will inform development of the Napier City Recovery Plan Stages 2 and 3.

License fees To minimise burden on cashflow for Napier’s hospitality sector in the immediate term, NCC is deferring payments for different license types – including food, liquor, and mobile shops – for businesses that are not operating or have only limited operations due to COVID-19 restrictions. This will commence with the May and June invoicing schedule.

Car parking Napier City Council will continue suspension of lease parking payments until Alert Level 2 or below, commencing April 2020. This will reduce burden of cost on Napier businesses and their employees.

Partnership with Te Taiwhenua o Te-Whanganui-a-Orotu Napier City Council has been working alongside Te Taiwhenua o Te-Whanganui-a-Orotu in the welfare response for our community through Alert Level 4. With potentially increasing numbers with higher stress and reduced incomes due to the impacts of COVID-19, it is important that we work together to support our community. We will continue to work with Te Taiwhenua and other organisations such as Whatever It Takes Trust and Housing First to provide support to our community as we transition to Alert Level 3 with the aim that “no one falls through the gaps”.

Civil Defence – Group Emergency Co-ordination Centre Response (GECC) Napier City Council is an active member of the regional Civil Defence response. Staff will continue support the operation of the GECC in Alert Level 3, and implementation of the Napier Welfare Plan, including through welfare calls to ensure the local community has access to support through the transition from response to recovery.

Employment We are working alongside the Ministry of Social Development as they identify individuals, including youth, who have lost jobs within the tourism and hospitality industries so they can be offered deployment or training opportunities to gain employment in other sectors.