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Supply Chain Risk

Government keeps close eye on trade amid coronavirus

The Government is keeping a close eye on trade amid the coronavirus outbreak, as crayfish are returned to sea, logs pile up at Chinese wharves and small tourism businesses come under pressure.

The virus has killed more than 900 people and infected more than 40,000 around the world. There are currently no suspected or confirmed cases in New Zealand.

Ardern gave an update on the effects of the outbreak at her weekly post Cabinet press conference this afternoon.

On trade, she said the wider supply chain risk remained unknown.

“I think this does again underscore the importance of a diversified trade profile for New Zealand and for our exporters.”

The Government has received information on small businesses particularly reliant on international visitor expenditure from China, she said.

These businesses are in places like Rotorua, Queenstown and Auckland.

Tourism New Zealand was working with Inland Revenue on potential options to ease the pressure, Ardern said.

“My strong message at the moment would be to those small businesses – call Inland Revenue sooner rather than later if you are experiencing any difficulties”, Ardern said.

The forestry industry has been dealing with logs piling up as economic activity looks certain to slow in response to the outbreak.

The stockpiling comes on top of new supplies of softwood into China, due to the salvage of insect and windstorm damaged spruce forests in Central and Eastern Europe.

“So that is having an effect on New Zealand but I think it’s important to note Coronavirus is not the only issue having an effect there”, Ardern said.

Just today Carter Holt Harvey announced the closure of its Whangārei sawmill in early April following the completion of a consultation process

Options were being looked to “keep harvesters going” and the Ministry of Social Development was assessing what support it could provide for those impacted in the industry.

Meanwhile, the Ministry for Primary Industries continued to work with the rock lobster sector to be as flexible as possible, she said.

Between 150 and 180 tonnes of live crayfish, or rock lobster, have been held in New Zealand in pots and tanks, at sea and on land, after export orders were cancelled by Chinese distributors in response to the outbreak of coronavirus.

Ardern confirmed rock lobster held in pots within the ocean have been returned to sea and with permission from MPI, others have also been returned within reason.

“We’re looking now whether or not they’ll be able to carry over any of their annual entitlement for that fishery”, she said.

As of Feb 1, 59 per cent of international students expected to study in New Zealand had arrived.

Visas have been extended for those in affected areas who have not arrived to try to lessen the impact, Ardern said.

“The knock-on effect will be determined by how long we have border controls in place.”

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