Auckland Business Chamber, banks provide financial aid
Flooding in the upper North Island has created havoc for thousands of residents and business owners, and Auckland Business Chamber is expecting the cost to be significant.
Over 5,000 properties in Auckland were affected by the flooding, the member organisation said, which began with an unprecedented deluge of rain on Friday, January 27. As of February 7, 276 red, 1,590 yellow and 2,526 white stickers had been issued by building assessment teams, the organisation said.
Earlier this month, the Insurance Council of New Zealand said the number of claims received across house, motor, contents and commercial insurance was around 20,000. In late January, Tower said it had received 1,900 claims, while on February 3, New Zealand’s largest insurer (IAG) confirmed over 15,000 claims had been lodged across its AMI, State, NZI and partner brands. In its half-year results, Suncorp Group said its New Zealand business had received over 8,000 claims, while AA Insurance has confirmed it has received over 6,000.
Auckland Business Chamber CEO Simon Bridges (pictured above) told NZ Adviser that while it was too soon to estimate the full financial impact of floods in the region, given current claim numbers there was no doubt the cost would run into the “hundreds of millions of dollars”.
IAG expected to pay out over $383m in claims, Bridges said. In the early aftermath, he said the key priority for business owners was to finalise the clean-up and re-open their doors.
“Right now, we need to turbo charge the clean-up so businesses can operate, and employees can work. Equally important is the message that Auckland hasn’t shut up shop – its open for business,” Bridges said.
Processing times for insurance claims and building inspections is also a priority for businesses, he said.
“While delays are expected, it’s critical that business have the certainty they need to operate and have swift access to insurance claims for urgent expenses and repairs.”
Auckland Business Chamber co-facilitates government support package
While many businesses are insured, Bridges said a large number weren’t covered – acknowledging that number had risen following the COVID-19 outbreak.
On Wednesday, Finance Minister Grant Robertson announced the government would provide a $5m emergency support package to help Auckland businesses significantly impacted by the floods. The money would be delivered through Auckland Business Chamber, the Employers and Manufacturers Association, Whāriki and the Pacific Business Trust.
“While the government cannot be a backstop to the uninsured, the chamber is working with central government on the flood recovery and how best to support businesses that have been significantly impacted – and in particular, those which still cannot operate,” Bridges said.
Banks offer financial support
The main five banks are offering financial assistance to personal and business customers affected by the floods.
ASB has announced a $2,000 one -off ex-gratia payment, available to its personal and business customers whose homes have been red or yellow stickered, to help with unforeseen costs. Small business customers whose main business account is with ASB may also qualify for the payment.
Storm-impacted personal, business and rural customers have the option to suspend their ASB home loan principal repayments for up to three months, ASB said. An overdraft of up to $10,000 is available for ASB home loan customers (up to $2,000 for other customers).
ANZ has announced it will provide a $100,000 donation to the Mayoral Relief Fund to support local communities. Additionally, the bank is offering customers the option to restructure their loan repayments, and targeted assistance to businesses, such as temporary overdraft facilities and deferral of loan repayments.
Westpac has set up a $1m fund which includes a $2,500 cash grant to eligible small businesses, to help with urgent expenses or repairs. Other support options include suspension of principal repayments (up to three months) on home and business loans.
BNZ is offering targeted assistance including the ability to review home lending facilities on a case-by-case basis, and temporary overdrafts for agricultural, business, commercial and small business customers.
For Kiwibank home loan customers, the available options include changing to interest-only and repayment deferral, while business customers can move to temporary or interest-only lending, defer payments and receive early access to invested funds.
Bridges said he was pleased to see banks respond proactively to the floods by offering help to affected businesses.
Have the Auckland floods significantly affected your home loan customers – including those looking to sell or buy? Share your thoughts in the comments section below.
