31 o Hereturikōkā 2021
Hon Todd McClay
Opposition Spokesperson for Economic Development and Small Business

Kei te rangatira, tēnā koe

Anomalies across Alert Level Guidance

Thank you for your ongoing advocacy for the business sector, especially during the current Alert Level 4 lockdown. I watched the Economic Development, Science and Innovation Select Committee hearing on Thursday with interest, in particular your questions around the types of businesses that can and cannot operate at Alert Level 4 and reasons behind this.

Following the concerns you raised comparing green-grocers and butchers to local dairies, I would like to provide you with examples of how the rules are being flouted within parts of the food sector that are able to trade, and provide additional information on the inconsistencies of trade at Alert Level 4.

Operational activity that breaches guidelines

Although not explicitly advertised on websites or social media platforms, it has been brought to my attention that some establishments operating under the ‘bakery’ label have been bending restrictions and discreetly offering coffee alongside baked goods deliveries. Similarly, some bakeries are delivering goods beyond what one would reasonably deem within the ordinary operation of a bakery, such as freshly made wood-fired pizzas.

While some of these ‘bakery’ operators may consider this creative interpretation of Alert Level guidance, in reality it is nothing more than opportunistic trading that breaches guidelines. Given the vast majority of hospitality operators are completely locked out of trading at Alert Level 4, this kind of arrogant activity only heightens the exasperation felt across our sector. Those who are able to operate at Alert Level should see this as a privilege, not a right, and take steps to adhere to the guidelines or be stripped of that privilege.

Inconsistencies of trade at Alert Level 4

As was also discussed during Thursday’s Select Committee meeting, I am convinced that a range of inconsistencies regarding trade at Alert Level 4 remain.

Bakeries, for example, that sell pastries, scones and other goods are allowed to operate, yet cafés – many of whom supply the exact same goods – are not. Restaurants, bars and pubs are forced to shut shop and waste already tapped beer, meanwhile contactless delivery from outlets specialising in the sale of alcohol is permitted.

Following the first, month-long Alert Level 4 lockdown last year, many within our industry made the move to create online platforms, and establish contactless delivery capability within their businesses.

The Association is not satisfied with the Government’s reasoning that the decisions behind what businesses can and cannot operate at Alert Level 4 are to limit the number of contact points in the community. It is our view that while any open site does pose a potential health risk, this is nowhere near comparable to an over-run, overwhelmed single site, with high foot traffic. The examples you provided, of a high volume supermarket versus local butcher, or hundreds of people concentrated in one place versus a one-person-in-one-person-out system, canvassed this perfectly.

Next Steps

I will be writing to Hon David Clark to raise these concerns with the Government. I would value any additional insight you may elicit from the Government on these matters.

There is no doubt the Alert Level system is a useful tool, however if we are going to stick with it, it needs consistent application and ongoing scrutiny. To your point: if it can be safe for a dairy, it can be safe for a butcher or green-grocer. Similarly, if it can be safe for a bakery, it can be safe for a café.

Please don’t hesitate to let me know if you have any questions or need anything further.

Ngā mihi nui,

Marisa Bidois
Tāhūhū Rangapū (Chief Executive)
Restaurant Association of New Zealand

31 o Hereturikōkā 2021
Hon Dr David Clark
Minister for Commerce and Consumer Affairs

Kei te rangatira, tēnā koe

Anomalies across Alert Level Guidance

Thank you for your ongoing work to keep hospitality top of mind during the Government’s response to COVID-19. As I mentioned during our meeting on 11 August with Hon Faafoi, engagement with the Government has increased exponentially over the past few years, and I am grateful that our concerns are being heeded by Ministers.

As you will be aware, Alert Level 4 lockdown impacts all sectors differently. For us in hospitality, every Alert Level 4 lockdown sends our businesses scrambling – scrambling to save thousands of dollars worth of stock, scrambling to pay wages as per normal, and scrambling to pay ongoing overheads, all while revenue remains at $0.

While our Members are committed to doing their part for our nation as part of the response, I am concerned that a range of inconsistencies regarding trade at Alert Level 4 remain.

Inconsistencies of trade at Alert Level 4

Bakeries, for example, that sell pastries, scones and other goods are allowed to operate, yet cafés – many of whom supply the exact same goods – are not. In normal operational circumstances, some of these bakeries are considered a ‘café’, yet they are able to carry on business as usual, purely because they fall within the government’s arbitrary label of a ‘bakery’ There is absolutely no difference between their operations at Alert Level 4, and how cafés operate during Alert Level 3.

The Association is not satisfied with the Government’s reasoning that the decisions behind what businesses can and cannot operate at Alert Level 4 are to limit the number of contact points in the community. It is our view that while any open site does pose a potential health risk, this is nowhere near comparable to an over-run, overwhelmed single site, with high foot traffic.

It is our view that if bakeries can sell pastries, scones and other goods – goods that are the literal bread and butter offering of a café – through contactless delivery at Alert Level 4, the same liberties should be given to cafés.

Operational activity that breaches guidelines

It has also been brought to my attention that some establishments operating under the ‘bakery’ label have been bending restrictions and discreetly offering coffee alongside baked goods deliveries. Similarly, some bakeries are delivering goods beyond what one would reasonably deem within the ordinary operation of a bakery, such as freshly made wood-fired pizzas.
This activity, although not explicitly advertised on websites or social media platforms, is nothing more than opportunistic trading that breaches guidelines. Given the vast majority of hospitality operators are completely locked out of trading at Alert Level 4, this kind of arrogant activity only heightens the exasperation felt across our sector. Those who are able to operate at Alert Level should see this as a privilege, not a right, and every effort should be made to ensure businesses are adhering to the guidelines or they should be stripped of the privilege.

Next Steps

I would value you looking into these matters. I wrote to the Minister for COVID-19 Response, Hon Chris Hipkins earlier this year, stating that I was not convinced the Alert Level settings were fit for purpose. I remain of that view. There is no doubt the Alert Level system is a useful tool, however if we are going to stick with it, it needs consistent application and ongoing scrutiny: I believe it is current form is creating a “winners and losers” mentality across sectors – those that can operate are “winners” and those that can’t are “losers”.

The fact that there can be a large concentration of people at supermarkets, yet cafés are unable to operate contactlessly alongside their bakery counterparts, shows the extent of anomalies – anomalies our Members are finding increasingly difficult to reconcile. If it can be safe for a bakery, it can be safe for a café.

Please don’t hesitate to let me know if you have any questions or need anything further.
I look forward to hearing from you in due course.

Ngā mihi nui,

Marisa Bidois
Tāhūhū Rangapū (Chief Executive)
Restaurant Association of New Zealand

21 May 2021
Hon Kris Faafoi
Minister of Immigration

Tēnā koe Minister

Immigration settings must be based on more than ideology

I am writing to place my concerns regarding the direction the Government is taking immigration on record, following the delivery of the Immigration Reset speech on 17 May. I would also like to seek a time to meet with you to discuss the real consequences the proposed immigration redirection presents for the hospitality sector.

Our sector is one defined by our people: our restaurant and café Member businesses curate and craft dining experiences, providing places for family celebrations and gatherings. They are often whānau run businesses, with recipes passed down generation to generation, and see sharing their culture with New Zealanders as pride of place. It is not by chance that we are one of the bigger sectors in Aotearoa that employs migrant workers.

Around 15 per cent of our current workforce is made up of people on temporary work visas. Our Members pride themselves on providing meaningful job opportunities for New Zealanders, however, the reality is that many of these roles are not currently able to be filled by Kiwis. The reasons for this are diverse and have been spelt out for the Government across a multitude of submissions over the past year.

For the migrants working in our sector, these jobs provide a hand-up that helps them create a better quality of life for themselves and their families. However, I couldn’t help but pick up on a theme woven through the Immigration Reset speech is the need to attract ‘highly-skilled’ workers to our shores. Experience shows us officials have a narrow interpretation of ‘highly skilled’.

Highly skilled people are not just CEOs, engineers, financiers, research and development practitioners, digital and IT specialists, agricultural workers and those in the film industry, as outlined in the reset speech. In hospitality, highly skilled refers to a specialist chef or a head chef who has crafted their skill over several years of training and experience, it is a restaurant manager who has experience in developing incredible customer service experiences, it is the pastry chef who is an artisan that has worked in Michelin starred restaurants and the sommelier who has extensive knowledge of wine from many regions around the world, many of whom devote years to perfecting their craft. Profit margins are tight in hospitality, which means wage costs need to be carefully managed, however it does not mean these employees are lacking in skill.

I would also like to make mention of the Government’s express desire to engage with business regarding the proposed immigration redirection. Not long after your appointment to the role, we wrote to you outlining our concerns around immigration policy and the impact its application by Immigration NZ was having on our existing migrant workers. We also recommended a number of modest changes to improve the way Immigration NZ engages with our sector. These recommendations were:

• continue to reward those employers who can demonstrate they are committed to hiring New Zealanders first i.e. by engaging in the Hospo Start training programme.
• support the Association’s work across Government to recreate the hospitality employment narrative and help New Zealanders to see hospitality as a career pathway for life.
• ensure that our Association is included in the consultation that happens around immigration matters.
• a dedicated hospitality page on the INZ website.

We note that there has been work done on a dedicated hospitality page on the INZ website which has been helpful for the industry. However, there has been an absence of consultation on the accreditation finalisation and other areas that specifically impact hospitality businesses. We were told by senior officials that we would be contacted in early 2021 to be part of the consultation group finalising the details around the accreditation processes but at this stage have not been approached to be involved in this consultation.

We know that no organisation can implement change alone and would ask where there are proposed changes to policy that the Government seeks to engage with the Restaurant Association, as a representative of more than 2,500 hospitality business owners employing more than 50,000 employees, on these matters.

We are working hard with other areas of Government, such as the Ministry of Social Development, on initiatives like HospoStart and Springboard training, however our businesses continue to struggle accessing skilled workers.

As a nod toward doing things differently and creating change in our industry, we have spearheaded the Future of Hospitality Roadmap, a first for our sector. We have already garnered considerable cross-sector support from sister organisations, unions, industry operators and business organisations and would welcome your feedback on the Roadmap before its launch later this year. As the first of its kind, we would welcome input from you and your officials if we want to build a hospitality sector that is truly fit for the future.

Since Monday’s announcement, we have been bombarded by calls from our Members, many in tears, dismayed at the Government’s approach to immigration and lack of cognisance for sectors that heavily rely on migrant talent. I have attached a summary of just a small portion of the feedback we have received over the last week. Many of these Members fear that this will be the straw that breaks the camel’s back; proprietors have endured months of struggle, but without staff, businesses will be brought to their knees. An establishment could have the best kit out, the best menu, or even the highest financial backing, but without people, a hospitality business cannot exist.

Our immediate recommendations for change, in addition to our original recommendations:

• pause the planned immigration salary threshold increase to $27.00 while the industry is still in a tenuous economic position
• provide an additional visa extension for employer-assisted work visa holders currently in New Zealand to allow employers to retain their existing migrant workforce while the industry is experiencing skill shortages
• consult regarding the proposed franchise group requirements for the new employer-assisted visa framework, as franchise organisations don’t fit a one-size-fits-all approach
• allow border exceptions for “other critical workers” from other industries, such as hospitality, where there is a proven need.

I would welcome the opportunity to meet with you at the earliest convenience, to discuss these issues in more detail. I look forward to hearing from you.

Ngā mihi nui,

Marisa Bidois
Tāhūhū Rangapū (Chief Executive)
Restaurant Association of New Zealand

Attachments:

1. Member feedback

5 o Poutū-te-rangi 2021
Hon Chris Hipkins
Minister for COVID-19 Response
Executive Wing 6.3
Parliament Buildings
c.hipkins@ministers.govt.nz

Kei te rangatira, tēnā koe

We have all been dealing with COVID-19 for over a year now. In that time I have made
the case, a number of times, to Ministers to show leadership for hospitality and work
with us to improve the Government’s response to better support our struggling sector:
to keep businesses open, workers in jobs, and livelihoods intact.

When the Government’s Alert Level guidance was first mooted in March 2020, the
Government said our initial month long lockdown was needed to ‘flatten the curve’. In
her 21 March 2020 address to the nation, the Prime Minister told us “Alert Level Three is
where the disease is increasingly difficult to contain. This is where we restrict our
contact by stepping things up again. We close public venues and ask non-essential
businesses to close.”

During Auckland’s most recent double lockdowns, I have spent time reflecting on these
words: “the disease is increasingly difficult to contain.” Like many business leaders, I am
not convinced the Alert Level settings, which were put in place a year ago, are fit for
purpose for what we know now.

At the inception of these guidelines, there was much made about essential versus
nonessential businesses, with commentary levelled at our sector that we could be a
hot-bed for COVID-19 spreading throughout households via prepared food. In a year,
this has not come to pass once.

While the rest of the country has been able to get used to working from home, a
handful of sectors remain completely and utterly hamstrung by the current alert level
settings in place. These sectors – hospitality, events sector, beauty therapy, hairdressing,
tourism and some retail – are all sectors that require kanohi ki te kanohi (face to face) to
turn a dollar. We are the sectors where working from home doesn’t work.

I raised this in a meeting with the Treasury back in September 2020, recommending the
Government look into creating specific, sector-led alert level guidance that could be
called upon in the event the country goes back up alert levels. Treasury asked what this
would look like in practice, so we made draft guidance for hospitality and submitted it in
November. A copy of our Draft COVID-19 Alert Level Guidance Update – Hospitality Specific
is attached.

I remain concerned that the Alert Level guidance has not been updated since its
creation: there needs to be acknowledgement that in their current form, the settings
decimate particular industries. There is no doubt the alert level system is a useful tool,
however if we are going to stick with it, it needs urgent updating.

We recommend sector-specific alert level guidance that addresses both operational and
fiscal changes that could be ‘triggered’ each time there is an alert level change. This kind
of guidance provides much needed certainty, and is the kind of initiative that could have
been spearheaded by the Government over the past several months

I cannot help but reflect that the current alert level settings disrupt small businesses in
the services sector more so than any other industry. Let’s work together to review these
settings and ensure they are working for as many businesses as possible.

Hospitality operations have no ability to trade at Alert Level 4 and limited opportunity at
Level 3 – working from home is not an option. Currently, the level of restrictions
required at Level 2 adds layers of cost and compliance that further limits the ability to
trade profitably.

I am asking the Government to turn its collective mind to those few industries that
remain immobilised by the current alert level guidance. We have done the heavy lifting
for sector-specific change work, and we are asking for officials to engage with us. We
must chart a course for improvement because improvement to the alert level guidance
is necessary for business survival.

Ngā mihi nui,

Marisa Bidois
Tāhūhū Rangapū (Chief Executive)
Restaurant Association of New Zealand

Attachments:

1. Draft Updated COVID-19 Alert Level Guidance – Hospitality Specific