Time is running out for businesses who took out a Covid Small Business Cashflow Scheme.

It's five years today since Inland Revenue introduced the loans.

They were issued to more than 129,000 businesses and totalled $2.4 billion.

The IRD says they're now reaching their cut-off point, and default loans not paid in full will be enforced.

ABC Business Sales managing director unveils how many businesses are still owing - and by how much.

LISTEN ABOVE

Time is running out for businesses who took out a Covid Small Business Cashflow Scheme.
It's five years today since Inland Revenue introduced the loans.
They were issued to more than 129,000 businesses and totalled $2.4 billion.
The IRD says they're now reaching their cut-off point, and default loans not paid in full will be enforced.
ABC Business Sales managing director unveils how many businesses are still owing - and by how much.
LISTEN ABOVE

With a straight down the middle approach, Heather du Plessis-Allan Drive on Newstalk ZB delivers the very latest news and views to New Zealanders as they wrap up their day.

Heather du Plessis-Allan Drive

Chris Small: ABC Business Sales managing director on businesses reaching the cut-off point to pay back Covid loans

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/debcb253-8349-4a22-b239-b2db0088dcdb/transcript

An expectation of more OCR hikes - with bond yields rising internationally.

10-year New Zealand government bonds are now paying above five percent - the highest level since 2023.

US 30-year Treasury bonds are at their highest point since 2007.

The OCR rose to 2.75 percent two weeks ago.

Westpac Chief Economist Kelly Eckhold told Heather du Plessis-Allan central banks have a lot of work to do next year, so he expects the OCR could be four percent at the end of next year.

LISTEN ABOVE

An expectation of more OCR hikes - with bond yields rising internationally.
10-year New Zealand government bonds are now paying above five percent - the highest level since 2023.
US 30-year Treasury bonds are at their highest point since 2007.
The OCR rose to 2.75 percent two weeks ago.
Westpac Chief Economist Kelly Eckhold told Heather du Plessis-Allan central banks have a lot of work to do next year, so he expects the OCR could be four percent at the end of next year.
LISTEN ABOVE

Kelly Eckhold: Westpac Chief Economist talks fears around bond markets, predicts OCR hikes

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/fc79ae01-e800-4910-8f5a-b4c5007eaecd/transcript

Listen to the Heather du Plessis-Allan Drive Full Show Podcast for Monday 14 September.

Get the Heather du Plessis-Allan Drive Full Show Podcast every weekday evening on iHeartRadio, or wherever you get your podcasts.

Listen to the Heather du Plessis-Allan Drive Full Show Podcast for Monday 14 September. 
Get the Heather du Plessis-Allan Drive Full Show Podcast every weekday evening on iHeartRadio, or wherever you get your podcasts.

Full Show Podcast: 14 September 2026 

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/4c573e2d-cc8a-44f0-b0cf-b4c50076c15a/transcript

Now, just for the avoidance of doubt, let me tell you what happened here with this mistake that led to 30,000 people missing out on Winter Energy Payments and benefits.

It happened because Louise Upston passed a piece of legislation so fast, under urgency, in just two days last year that no one had time to spot the fact the law contained a mistake.

What happened was that the law required MSD, the ministry, to check with people every year that they were still entitled to the money they were receiving. However, it didn't exclude pensioners and veterans receiving the Winter Energy Payment, which they get simply because they are pensioners and veterans.

Of course, they should have been excluded under those circumstances because, once you're a pensioner, you're a pensioner. You're not going to stop being a pensioner; you'll be a pensioner until you die. Once you're a veteran, you're a veteran until you die. It doesn't change.

So they should have been exempt from this law but they weren't because it went through the parliamentary process too quickly.

This actually happens quite a lot. A few years ago, under urgency, Parliament realised that it had tabled and voted through the wrong piece of legislation because proceedings were moving so fast.

It happens all the time.

This Government has used urgency a lot. Jacinda Ardern's Government used urgency a lot as well. They often do it because they're running out of time but sometimes it's because they want to avoid too much attention being focused on what they're doing for an extended period.

That's why, for example, National tabled and rushed through the Pay Equity Bill. They didn't want all the drama that would have come with people focusing on it for a long time.

But they've been warned that, if they do this, the consequence of rushing legislation through is that mistakes may go unnoticed and therefore never get fixed.

In this case, it's been particularly unfortunate because it has affected some of the most hard-up people in the country at the worst time of year: people relying on the pension and trying to heat their homes during winter.

That is a really hard lesson for political parties on why they should not rush laws.

LISTEN ABOVE

Now, just for the avoidance of doubt, let me tell you what happened here with this mistake that led to 30,000 people missing out on Winter Energy Payments and benefits.
It happened because Louise Upston passed a piece of legislation so fast, under urgency, in just two days last year that no one had time to spot the fact the law contained a mistake.
What happened was that the law required MSD, the ministry, to check with people every year that they were still entitled to the money they were receiving. However, it didn't exclude pensioners and veterans receiving the Winter Energy Payment, which they get simply because they are pensioners and veterans.
Of course, they should have been excluded under those circumstances because, once you're a pensioner, you're a pensioner. You're not going to stop being a pensioner; you'll be a pensioner until you die. Once you're a veteran, you're a veteran until you die. It doesn't change.
So they should have been exempt from this law but they weren't because it went through the parliamentary process too quickly.
This actually happens quite a lot. A few years ago, under urgency, Parliament realised that it had tabled and voted through the wrong piece of legislation because proceedings were moving so fast.
It happens all the time.
This Government has used urgency a lot. Jacinda Ardern's Government used urgency a lot as well. They often do it because they're running out of time but sometimes it's because they want to avoid too much attention being focused on what they're doing for an extended period.
That's why, for example, National tabled and rushed through the Pay Equity Bill. They didn't want all the drama that would have come with people focusing on it for a long time.
But they've been warned that, if they do this, the consequence of rushing legislation through is that mistakes may go unnoticed and therefore never get fixed.
In this case, it's been particularly unfortunate because it has affected some of the most hard-up people in the country at the worst time of year: people relying on the pension and trying to heat their homes during winter.
That is a really hard lesson for political parties on why they should not rush laws.
LISTEN ABOVE

Perspective with Heather du Plessis-Allan: Here's why political parties shouldn't rush laws

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/b80ff01d-0e85-4c9a-bcf7-b4c4003a13ca/transcript

Chris Small: ABC Business Sales managing director on businesses reaching the cut-off point to pay back Covid loans

In 1 playlist(s)

Heather du Plessis-Allan Drive

Social links

Follow podcast

Recent clips