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RNZ News
07-07-2025
- Business
- RNZ News
Covid-19 Inquiry: Business leaders detail struggle with vaccine mandates and finances
Auckland CBD during the level 4 lockdown. Photo: RNZ / Robert Smith Business leaders from Auckland and Northland have spoken about the profound impacts on small to medium businesses coping with public health restrictions during the Covid-19 pandemic. They spoke at the Royal Commission of Inquiry into the government's response to Covid-19, with one leader saying they didn't think vaccine mandates would work in the future. The legal challenges for businesses to implement the mandates, and the enduring financial repercussions that are still felt today were among some of the issues raised. These are the first public hearings of the inquiry's second phase, which was called for by the coalition government last year. The hearings concentrate on the impact of the extended lockdown in Auckland and Northland in 2021, vaccine mandates and safety, and the effects of the public health measures on social division, isolation, health, education, and business activity. Auckland was in lockdown for 17 weeks, and Northland and parts of Waikato for 12 weeks, after community transmission of the Delta strain in August 2021. Auckland's Heart of the City's CEO Viv Beck said the pandemic was the "perfect storm" for CBD businesses, with the loss of tourists, international students, large events, and leaving many working from home. She said this left businesses dealing with the "eye of the storm" - particularly for the 1300 consumer facing businesses facing a 95 percent drop in sales during the level four lockdowns. Beck cited data from banks which also showed a 38 percent drop in spending at CBD businesses during alert level two, and a 19 percent drop under alert level 1 restrictions. She said many are still trading below pre-Covid levels as of today. Beck said wage subsidies at the time had helped, but didn't cover businesses' operating costs and rent. Meanwhile, the Employers and Manufacturers Association's (EMA) employment relations and safety manager Paul Jarvie told the inquiry that vaccine mandates had created legal challenges for businesses. "You've got conditions of employment, running in parallel to that you got the Bill of Rights, so people to have the right to say yes or no to treatment, and treatment includes injections. Those businesses that were mandated to have vaccines, that immediately creates employment law issues, if someone doesn't get mandated [sic] what do you do with them?" he said. When asked by the chairperson of the inquiry, Grant Illingworth KC, whether employment legislation during the Pandemic was adequate, Jarvie said it was "fit for purpose" at the time, but added that it would be helpful if there was a caveat under the employment law which allowed for certain public health measures under exceptional circumstances. Both Jarvie and Beck told the commissioners that if there was another similar event, they hope businesses can be involved from the very beginning. Royal Commission of Inquiry into the Covid-19 pandemic response chair Grant Illingworth KC. Photo: Screengrab / Covid 19 Inquiry Beck said while she'd liaised with central government agencies from February 2020, she pointed out that being given information was different from being able to participate in decision making. "We got to a point where we were actually getting asked about a decision about to be made, often at the last minute, but that's the point, if it happens from the start, businesses have to be a trusted voice in decision making," she said. A manager from the National Field Days Society also in her evidence spoke of feeling of the events industry not being listened to by decision makers during the pandemic. Its head of customer and strategic engagement Taryn Storey said they'd spoken to government agencies multiple times about how they could host field days safely, but felt ignored. She said they were willing to integrate vaccine passports into its ticketing system, and thought their venue was well equipped to support the pandemic response. However, Storey said multiple visits by decision makers to their venue - including by district health officials - had led nowhere. Storey said while they felt they had weathered the pandemic, the impacts were "exceptionally profound" and they're still financially trying to claw their way back. Representatives from Northland's Chamber of Commerce said in their evidence on Monday that a community based approach would've worked better than the hard handed vaccine mandates, in persuading people to get vaccinated. Its president ,Tim Robinson, said rather than the "authoritarian" mandate path, he felt it would've been more effective to engage with Whānau Ora providers to talk to Northland communities and businesses about the vaccine. "Anybody that I dealt with or worked with during that whole period, said look, I got a much better chance of convincing somebody that the vaccination's a good idea, if there's no threat attached to it," he said. A worker on the frontline of Auckland's Jet Park Hotel quarantine facility being vaccinated against Covid-19 on 20 February 2021. Photo: Supplied / Ministry of Health Robinson said the mandates made businesses feel that they were not trusted. When asked by commissioner Anthony Hill whether vaccine mandates would ever be a valid tool in future events from a business perspective, Robinson said no. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
07-07-2025
- Health
- RNZ News
As it happened: First public hearings into New Zealand's Covid-19 response begin
Heart of the City chief executive Viv Beck, right, and employment relations and safety manager Paul Jarvie. Photo: The first public hearings into New Zealand's Covid response get under way on Monday - with a focus on lockdowns and vaccines. The Royal Commission of Inquiry into Covid-19 is looking into the government's response to the pandemic and its effects. It is the first time submissions will be heard publicly, with the sessions livestreamed. You can follow updates from today in our live blog above. This week's hearings particularly concentrate on the impact of the extended lockdown in Auckland and Northland in 2021 and on vaccine mandates and safety. In a minute issued on the Inquiry's website chair Grant Illingworth KC said that would include the effect on "social division and isolation, health and education, and business activity. Covid 19 response Inquiry chair Grant Illingworth KC. Photo: Screengrab / Covid 19 Inquiry "We will also hear from experts about the key decisions and their consequences, and lessons to be learned from what happened." The hearings would be in secure hearing rooms, with commissioners, witnesses, lawyers and media present. There was no provision for public attendance beyond those submitting but the live streams would run and be available as recordings as well, the minute said. Witnesses would be questioned by lawyers helping the inquiry, and commissioners could ask questions. A second public hearing was due next month in Wellington. That was to hear from key decisions makers who "led and informed" the government's response to the pandemic. This Royal Commission was set up under the previous Labour government, but its brief was expanded under the current government, with Illingworth taking the chairing role. A report from the first phase was delivered last year. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
NZ Herald
29-05-2025
- Business
- NZ Herald
Smith & Caughey's closure a body-blow to Queen St retail
The 145-year-old department store was the oldest and last survivor of a cohort of Queen St department stores like John Courts and Milne & Choyce, with George Courts on Karangahape Rd and the Farmers on Hobson St. Once household names, these became victims of the commercial mayhem of the 1980s. But Smith & Caughey's, a prudently managed family business, carried on. Its stately Victorian building with its art-deco frontage has housed a grand emporium of goods from around the world, and its Christmas window displays have been the delight of children to this day. It's been a survivor of Auckland's golden age, when Auckland was envied across the country, and Aucklanders used to actually boast about their city. Last year, Smith and Caughey's narrowly survived a near-death experience only by closing its Newmarket store and retrenching the Queen St operation. Some of the reasons were outlined by its chairman, Tony Caughey: a major decline in foot traffic on Queen St meaning a 40% decline in revenue; the after-effects of Covid, crime and safety issues; national economic downturn; online shopping, designer brands like Gucci choosing to open their own stores; and competition from malls like Westfield Newmarket with their lavish free parking. But many of these factors are in play in Australian cities too, where department stores like David Jones and Myer are still very much in business. So what's different about Auckland? Here, city centre foot traffic continues to decline, down 3.8% from last year, with shop vacancies nearly 10%. Heart of the City's Viv Beck points to the compounding damage done to retail by Auckland Transport's removal of parking and loading zones, and increased parking charges, extended to 24 hours. It's an inconvenient truth for some, but Smith & Caughey's closure announcement puts it bluntly: 'The city centre has also faced significant disruption and change in the form of ongoing roadworks and the slow progress of CRL, causing traffic congestion. Similarly, perceived safety issues, a large decline in foot traffic on Queen St, and an increase in parking costs have all continued to impact the economic position of the business.' In recent years, at enormous expense and disruption, for reasons vaguely related to 'climate', the council reduced Queen St to two narrow lanes now dominated by mainly empty buses and a cycleway, the enlarged footpaths the home of beggars and rough sleepers. Now, even driving to and on Queen St is a mission. Indeed, from Wakefield St to the Civic Theatre, where two years or so ago, Auckland Transport set up what critics call a 'revenue trap', $20 million of fines have been issued to unwitting drivers. Though the council's 'City Centre Master Plan' promises an 'accessible, inclusive and prosperous city centre', its 'transformational moves' do the opposite; blockading and progressively hollowing out the city's retail heart. The Wellesley St West 'bus improvements' project, immediately adjacent to Smith & Caughey's, has been dug up for a year now, with no end in sight. Even more depressing, its objective is to permanently block access to Queen St for private vehicles. 'Master Plan' zealots, seemingly indifferent to the damage caused, are now intent on extending this blockade, what they call the Queen St 'AVO' (authorised vehicle only) from Mayoral Drive to Victoria St. This is part of an Orwellian 'A4E' (Access for Everyone) plan, intended to turn Queen St into a 'ZEA' (Zero Emissions Area), 'low-traffic neighbourhood'. The City Rail Link, originally meant to enhance the quality of life in Auckland, is now seen almost desperately as a lifesaver. Unfortunately, its disruptive construction has taken more than double the time originally planned, costing at least three times what was stated in its business case. But the official assumption, almost an article of faith, is that once the CRL is opened, thousands of people will come flooding into the city. That might well have been the case when construction began in 2016, but now why would they? Moreover, public transport is chronically failing in Auckland, with overall patronage since the 2019 peak down 11%, with rail patronage down 35%. Given challenging economic conditions, the council and AT should have done everything possible to keep Queen St retail. Instead, it did the opposite. Sadly, Smith & Caughey's, finally overcome by the odds, is in many ways the victim of the city for which it was for 145 years a stylish icon. Things have to change.
RNZ News
22-05-2025
- Business
- RNZ News
'End of an era': Shoppers mourn Smith & Caughey's closure after 145 years
The business announced it would be shutting down after 145 years. Photo: RNZ / Marika Khabazi Shoppers in Auckland are mourning the closure of Smith & Caughey's department store on Queen Street. On Wednesday, the business announced it would be shutting down after 145 years. Heart of the City chief executive Viv Beck said the situation was devastating. "It's very sad for the family, the staff, and a major loss for Queen Street." She said once the City Rail Link opened, the building would be in a great location. But as well as ongoing construction work, she said Auckland Council and Auckland Transport limiting vehicle access on the street was making it harder for businesses in the area to survive. "We've already lost around 44 percent of the cars coming in during the morning peak since 2015 and yet there's a fine for people going into a stretch of Queen Street just by Smith & Caughey's. "We know people for instance with disabilities can't get through that stretch to get to Smith & Caughey's. "It's also our night time entertainment area. These decisions are not grounded in common sense or economic viability and we've been appealing to transport and council to do something. This has to be a wake-up call for them." Waitematā and Gulf Ward councillor, Mike Lee, agreed AT and the council were partly to blame for Smith & Caughey's demise. He said it was gutting to see the "commercial life being squeezed out" of the once thriving street. "This [the store's closure] is a massive body blow for Queen Street and the viability of retail and the whole social ambience. "Smith & Caughey's have bravely battled on for years now, but this forever construction, forever disruption, perceived lack of safety, the filthy streets, all of that is a turn-off for shoppers." One shopper RNZ spoke to, Jane Etheridge, said she was devastated to see the end of the store's famous Christmas display and Santa's Grotto. "It's unbelievably sad. It's been around for such a long time and is part of New Zealand's heritage. It's one of the few heritage brands we have. "I grew up coming here every Christmas looking at the window displays and coming to the grotto. I bring my children here and there's not anything else like it." Meredith Townsley Fenton said it was a shame given the store's long history. "It's the end of an era. I was talking to one of the staff members and her mother brought her bridal lingerie there in the 1920s. "All of Queen Street has really changed." Some people including Allan Fitzgerald had noticed a declining number of people in the area. "My wife and I, my mother, and grandmother all used to shop here. "I look around and where are the cars? Where are the people? They're not carrying shopping bags. "It's really disappointing. But I fully understand why they're having to close." The future of the partially heritage-protected building owned by private shareholders is unknown. Auckland Council said it did not want to speculate on what it would be used for. Smith & Caughey's declined to comment. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
