Christchurch business aid group sees calls soar
Stress, fatigue, and maxing-out on business interruption insurance prompt cries for help at Recover Canterbury.
Tuesday, February 21 2012 || News || BY Tamlyn Stewart, Businessday.co.nz
The sand in the business interruption insurance hourglass is fast running out, and stress and fatigue are impacting more than a third of businesses now asking for help.
Recover Canterbury communications manager Pip Tschudin said in December an average of 9.5 businesses were contacting the organisation to ask for help each week.
From the beginning of 2012 that has increased to about 21 businesses a week.
The imminent expiry of business interruption insurance cover, the red zoning of suburbs where some businesses were located and the December 23 aftershock combined to prompt businesses to stick their hands up for help.
"Businesses have gone off over Christmas, they really wanted a break, they didn't get it because of aftershocks and they've come back and thought 'bugger it, I'm going to give them a bell and get some help', and it's great that they're coming to us," Tschudin said.
The launch of the Red Cross independent advice for small businesses grant also triggered a response from many small businesses, and through that contact Recover Canterbury had been able to offer further help.
The grant offers up to $750 per business for legal or financial advice. About 60 applications have been processed, and the first 30 businesses received the grants last week.
"It's been a good hook into many businesses," Tschudin said.
Key issues businesses were facing now were building and relocation costs, loss of markets and a changed customer environment, reduced cashflow and stress and fatigue.
There was still a "significant" demand for support for relocation and fitout costs, as some businesses had been in temporary accommodation and were now looking to establish themselves permanently.
Loss of markets and their former customer base either because the business has moved or their customers had, was a problem, and that affected cashflow.
Stress and fatigue have emerged as a major headache this year. Since the start of this month, 34 per cent of emails coming through the Recover Canterbury website had listed tiredness and stress as a major issue impacting their business.
"Often the business owner might be managing but their staff are struggling," Tschudin said. The organisation was putting more businesses in touch with support services to address that.
For many businesses their business interruption insurance cover runs out on Wednesday. While many had been working to get themselves to the stage where they would be able to survive without it, Recover Canterbury knows there are still some relying on it to survive, and that it will be an issue.
Businesses in that situation should contact the organisation for help sooner rather than later, she said.
Recover Canterbury administers the Canterbury Business Recovery Trust fund, which has about $2 million left in the pot for distribution.
So far $3.96 million has been distributed to 255 local businesses. Some of the $3.96 million already distributed had been in the form of loans, so some of that money would come back into the trust and could be redistributed.
The trust was still receiving donations and it was hoped more would still be donated.
Recover Canterbury is currently funded until the end of June this year and its future beyond that is yet to be determined.
Tschudin said the organisation was in talks with all its stakeholders - basically, the Government, the Canterbury Development Corporation and the Canterbury Employers' Chamber of Commerce - about extending the life of the recovery organisation.
"We're currently working with our stakeholders to look at the requirement for our services going forward."
It was "trying to ascertain the demand for its services" but Tschudin said she could not say more than that, nor give a timeframe within which it would be known whether the organisation would continue to operate after June.
The organisation is largely funded and supported by the government, through contracts and through staff being seconded to the organisation from government departments.
HELPING OUT
* Number of businesses reached by Recover Canterbury post February: more than 6000
* Canterbury Business Recovery Trust funding distributed: $3.9 million
* Number of businesses that have received trust funding: 255
* Business recovery co-ordinators currently employed by Recover Canterbury: 22
* Trust funding still available for distribution: $2 million
* Percentage of businesses contacting Recover Canterbury for the first time this year highlighting mental fatigue as a major issue: 34 per cent
* Businesses contacting Recover Canterbury for the first time, per week in December: 9.5
* Businesses contacting Recover Canterbury for the first time, per week in February: 21
