On 22 March 22 life as we knew it in New Zealand was turned upside down, as the country entered a Level Four lockdown – the highest alert level in New Zealand’s fight against Covid-19.
In order to stem the spread of the virus everyone was ordered to stay home, except those providing essential services, and we have been instructed to only physically interact with those we live with (our bubble).
We were given 48 hours’ notice to prepare to enter level 4 lockdown, yet most people failed to realise the extent of the restrictions. Going to the supermarket, accessing healthcare services or exercising locally either on your own or with those you live with are allowed. However, all playgrounds are off limits, golf courses are closed and watersports such as swimming, kayaking or surfing are actively discouraged, boating is banned and you cannot even go to your boat on the marina for any reason.
Police cars patrolling empty roads, and police boats patrolling the beaches and harbours are a common sight.
Workers have been instructed to work from home if they can, and all but ‘essential’ retail businesses have closed. You literally can’t buy anything but food, pharmaceuticals and a handful of ‘essential’ appliances such as heaters or technology required to work from home (the latter through online delivery only). Couriers have been instructed to only deliver essential goods, so online shopping for anything else isn’t allowed, restaurants and cafes have closed and takeaway services including Uber Eats have also been banned, though delivery of alcohol has been deemed essential.
So how are people coping? There seems to be widespread support for this drastic measure, with some even questioning why the Government didn’t do it sooner. However, now the discussion is turning to when and how we exit lockdown to provide some relief to the economy while maintaining the fight against Covid-19.
The vast majority of people are complying with the lockdown, and the sound of powertools has replaced cars on the road as people take to DIY. And while the roads are empty, the footpaths and parks remain fairly busy as people go for walks or bike rides to break up the day. The public golf course is now the local dog park, and everywhere you go people obey the two metre rule. This is now natural, but certainly seemed weird in the beginning, giving anyone you saw a wide berth as you zig zagged along your walk, usually with a grin and a greeting.
New Zealand has seen panic buying, although not to the same extent as Australia. The toilet paper shelves remain stocked, though flour seems to be in high demand as we turn into a nation of bakers. Supermarkets have implemented strict rules to enforce social distancing, resulting in long queues outside (with people queuing 2m apart) to get in as the numbers inside are restricted. Once inside it can be difficult to adhere to the two metre rule in the aisles, and less checkouts are in operation to allow space between them, which in turn slows the checkout process considerably.
Dairies (convenience stores) remain open, albeit with a one in, one out rule that means some people are happier to shop there for necessities, even though the prices are higher, rather than face the supermarkets.
Like most other countries, the economy is taking a hammering as business for many has literally ground to a halt. Large corporates are laying off people and implementing widespread paycuts for staff and some have collapsed altogether just a week into lockdown – including Bauer Media, the country’s largest magazine publisher. And in a country where 97% of businesses consist of 20 employees or less, business owners are struggling – including many in the collision repair industry.
At the time of the lockdown, the government announced a wage subsidy available to businesses, sole traders and contractors impacted by Covid-19 of $585 per week for a full time employee for 12 weeks paid in one lump sum. Employers are required to pass this on to employees and encouraged strongly to pay employees at least 80 per cent of what they normally receive during this period. The subsidy has been paid promptly and has provided some respite during these uncertain times.
With shops shut and no access to facilities even for owners, most collision repair owners are using this time to catch up on invoicing and the end of year reports (New Zealand’s financial year runs from 1s April to 31stMarch). Those that had a backlog at the time of the lockdown are taking some comfort that this work will help them through what will be a long, slow start up period.
Those without this work on their books are fearful for their survival even if they can last through the lockdown. The biggest concern for everyone, is what will the country be like at the end of the lockdown, what businesses will survive, how severely will spare parts supply be affected for those that have work.
With the roads closed to all but essential workers, or people travelling to the nearest supermarket, every road in the country is all but deserted. So the accident rate currently will be almost, if not totally zero. It would appear that New Zealand’s borders, which are currently closed, will remain shut for up to the next 18 months while the rest of the world gets Coronavirus under control, or until a vaccine becomes available, which means that international tourism, (New Zealand’s biggest export industry) will be non-existent for many years to come.
This will create significant challenges for a number of repairers who have specialised in rental car repairs on the back of the tourism boom.
Forecasting the next few months, let alone years, is proving challenging for businesses without knowing how long we’ll be in lockdown and whether the alert level might be dropped sooner in some regions with few Covid cases. Only time will tell – but for now, we hold on to the Maori words “Kia Kaha” – Stay Strong – and hope that these drastic measures will mean thousands of lives are saved, and our economy can start creaking back to life.