Originally Posted by
Ferg
That is right - rent, power, leases and other overheads didn't stop so the losses were real in April. This was partly offset by the fact the subsidy paid for 12 weeks and the closure was maybe 5-6 weeks. Whether the business "made" or "lost" on the subsidy depended on the base rate of pay and the % paid during lockdown relative to the $585/week x 12. The businesses I work with took it upon themselves to reduce overhead and other costs in anticipation of a sharp reduction in business, which has not (yet) occurred.
Consequently increased local demand with a lower overhead structure has lead to super profits in certain industries - not due to the subsidy, but due to sensible business practices, pent up demand from the lockdown and increased consumption in some industries given the lack of international travel available for Kiwis. Any "moral" argument is groundless given businesses were forced to close their doors with no relief on other costs, and a highly uncertain future. If the business met the criteria at the time then that is the end of the matter. Should they wish to repay the subsidy voluntarily then that is up to the business.