With the COVID-19 pandemic dealing a major blow to the cashflow of businesses in the Cook Islands, the Cook Islands Chamber of Commerce has submitted a list of recommendations to the government, which includes one-off grants to qualifying businesses, insurance-specific grants, and lowering thresholds to qualify for the wage subsidy.
According to a report by Cook Islands News, the Chamber of Commerce’s survey found that 91% of businesses were impacted negatively by COVID-19. The extent and severity of the pandemic worsened in October, with 61% of businesses reporting they suffered a “very negative impact.”
Almost all business (93%) reported a decline in revenue, with those reporting a significant decline increased to 70%. This has caused businesses to suffer from major cashflow problems.
Eve Hayden, CEO of the Cook Islands Chamber of Commerce, said that insurance-specific grants were included in its recommendations as the chamber recognises that insurance is a major factor in business costs, and businesses with depleted cashflow are struggling to cut down on operating costs. This allows businesses to continue without losing important insurance cover.
With many businesses operating at a loss, Hayden said that lowering the thresholds for qualifying for the wage subsidy is also vital to prevent further employee lay-offs.
“The readiness of the private sector to resume business-as-usual, once the border opens, will be pivotal to the resumption of tax collection and payments which in turn will provide the Government with much-needed income,” she said.