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BusinessAugust 18, 2020

Critical workers: border exemptions for ‘artistic work’ on billionaire’s golf course

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Immigration NZ has deemed a golf course designer and three ‘shapers’ to be critical workers, approving their entry to work on an American billionaire’s two courses in Northland. Rebecca Stevenson of BusinessDesk reports.

A golf course designer and three “shapers” have been approved entry to New Zealand as critical workers for US billionaire Ric Kayne’s coastal Te Arai Links courses north of Auckland.

Immigration NZ confirmed to BusinessDesk the four were granted exemptions on July 14 so work can start on one of the two 18-hole “championship level” courses planned for Kayne’s development.

Managing partner of Te Arai Links, Jim Rohrstaff, said the golf course “architect” and the shapers would work hands-on to develop the course. He said without those key staff, work on Te Arai Links cannot proceed. Golf course architects are not like house designers who draw up plans and hand them over, Rohrstaff said. They will be on the ground “doing the artistic work”.

“As soon as they get here, we are off to the races.”

Ric Kayne and his wife Suzanne Laughinghouse Kayne in Los Angeles in 2013 (Photo: Stefanie Keenan/Getty Images)

The Te Arai Links courses are being designed by Tom Doak and Coore & Crenshaw. Bill Coore from Coore & Crenshaw will also need to enter New Zealand a number of times to oversee the project, spending a 14-day period each time in managed isolation, Rohrstaff said.

The workers are coming from Tasmania, Canada and the US. Some would live in NZ for a year or possibly longer. “We are paying for everything – testing, accommodation, food, et cetera – and they will do the 14-day quarantine like everyone else.”

Immigration NZ said the workers were crucial for a “time-critical role” essential for the delivery of a major project that had wider significant benefit to the national or regional economy. It said the $50 million project was estimated to provide significant economic and employment benefits to the Northland region, as well as indirect benefits to Auckland. Well over 100 jobs would be created with the construction and development of the project, it said.

Other critical worker exemptions are granted on a number of criteria including that they have unique experience or technical skills that can’t be found in NZ, are undertaking a time-critical role essential for the delivery of an approved major infrastructure project, or have significant wider benefit to the national or regional economy.

Golf course architect Tom Doak (Photo: Scott Halleran/Getty Images)

Since March 31, Immigration NZ has approved 1,274 border exemptions as “other essential worker” or as a “critical worker”, including people working on James Cameron’s Avatar sequels and four workers for an all-weather horse-racing track in Cambridge.

The department said it accepted there were no NZ workers with the technical capability available to “complete a project of this level”.

A few of the course workers will be coming with their young families, Rorhstaff said. It is hoped one of the golf course designers will be arriving soon after a long process to get approval.

Tara Iti, a nearby golf course also developed by Kayne, is regarded as one of the finest golf courses in the world, and Kayne hoped to turn the area into a premium golf tourism destination with tourists drawn to the “cluster” of world-class golf courses. He was granted Overseas Investment Office approval in 2012 to purchase 230 hectares of sensitive land for $10 million.

Kayne, through a trust ultimately owned with wife Suzanne Laughinghouse Kayne, was granted approval by the OIO on March 31 to purchase a further 25.2 hectares of sensitive land at Te Arai, alongside a leasehold interest in 143.8 hectares, for $3.4 million for Te Arai Links, a clubhouse, visitor accommodation, maintenance and water storage facilities. The land is currently a pine forest plantation.

Tara Iti, Kayne’s existing golf course near where Te Arai Links is being developed (Photo: Supplied)

Documents released by the OIO under the Official Information Act submitted in support of Te Arai Links said once the course is operating there will be an annual contribution to gross domestic product of $14 million in Northland, with 140 direct and indirect jobs, 90 of which will be local.

International golf tourists would contribute an additional $20 million in spending to the national economy each year. Its economic modelling assumed 14,000 rounds of golf played by overseas visitors annually, and 16,000 rounds of golf by New Zealanders across the two courses, it said.

Tara Iti Golf Club is a private club, but Te Arai will be open to the public. Tara Iti claimed more than $700,000 in wage subsidy support for 104 workers, data from Work and Income showed. It was planned that both courses would be ranked in the world’s top 100 golf courses, the OIO application said.

The OIO decision said an estimated $6 million in export receipts would be generated by the courses by the end of 2022. The new courses would also increase visits to the Kauri Cliffs golf course, owned by another US billionaire, Julian Robertson.

As well as the two links courses, houses will also be built. Te Arai had approval to build 60 homes at Te Arai South and 65 at Te Arai North, Rohrstaff said. The development would span about 12 kilometres of coastline, he said. A large public reserve would also be created after 180ha in Te Arai North and about 180ha in Te Arai South were gifted for public use, Rohrstaff said.

Currently there were about 100 to 150 people working on the Te Arai North housing development each day, he said, and a further 100 or so working in the Tara Iti clubhouse plus 30 to 40 caddies every day. “It’s massive. And what we do [at Te Arai] will be even bigger.”

Rohrstaff said the true economic impact of the Te Arai project worked out to be far more significant than the Avatar films in terms of benefits, as the golf courses would bring sustained employment over decades to come, and provide jobs and demand for businesses outside of Te Arai itself.

“The headline is not as big, not as many people know about it, but the long-term sustainability of the jobs is here.”

This article originally appeared on BusinessDesk. Their team publishes quality independent news, analysis and commentary on business, the economy and politics every day. Find out more.

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Finance minister Grant Robertson (Photo: Getty/Hagen Hopkins/Stringer)
Finance minister Grant Robertson (Photo: Getty/Hagen Hopkins/Stringer)

BusinessAugust 17, 2020

Wage subsidy extension details revealed: here’s how it works

Finance minister Grant Robertson (Photo: Getty/Hagen Hopkins/Stringer)
Finance minister Grant Robertson (Photo: Getty/Hagen Hopkins/Stringer)

Do you qualify for the government’s new wage subsidy extension? Here are the essentials.

What’s all this then?

Last Friday, the government announced Auckland would stay in alert level three – and the rest of New Zealand in alert level two – for another 12 days, as part of its response to the recent Covid-19 outbreak.

To help businesses survive at least a fortnight of reduced trade and other obstacles as a result of the measures, the government also announced a third round of the Covid-19 wage subsidy scheme. Finance minister Grant Robertson released the final details today.

Who is eligible?

According to Robertson, the new wage subsidy extension criteria is similar to the current active wage subsidy extension: any business, self-employed or independent contractor will be eligible for the wage subsidy if they can show a 40% decline in revenue for any consecutive period of at least 14 days within August 12 and September 14 compared to last year.

Because of the nature of level three restrictions – which allows businesses to operate only in a contactless setting – many Auckland businesses are going to take a big hit either from operating at a reduced capacity or having to close entirely over the two weeks. Level two businesses across New Zealand are also likely to be impacted from having to physically distance and limit their customer numbers, while also losing revenue they would otherwise make from travelling Aucklanders.

Naturally, this will mean a vast wave of businesses apply for the subsidy, which will take the burden off of paying staff and allow more employers to retain and pay their workers over the two weeks.

The government estimates the new wage subsidy extension is likely to cover 470,000 jobs.

So there’s already a wage subsidy extension? 

Yes, there is a two-month extension to the wage subsidy which came into effect on June 10, with applications open until September 1. Because this is available to businesses that can show a 40% decline in revenue for a continuous 30-day period, it may not be applicable to the businesses who have been doing well but will struggle under the current alert levels. The wage subsidy announced today is aimed at them.

Treasury estimates that together, the two schemes together will cover 930,000 jobs.

How much will you get?

It works in the same way as the initial wage subsidy, so full time workers working 20 hours or more per week will get $585.80 gross per week, while part-timers working less that 20 hours per week will get $350.00 gross.

This will be paid in a lump sump sum to employers, who will then pass it on to employees. Like in the last wage subsidy, employers are expected to pay employees in accordance with their employment agreement, or, if they can’t do that, then they “should try their hardest” to pay them at least 80% of their usual wages, using the subsidy to subsidise a portion of it.

Employees that earn less than the wage subsidy should be paid their usual wages, and any difference should be used for the wages of other affected staff or, if not needed, should be paid back.

How do you apply?

Employers or independent contractors can apply through the Work and Income website. According to MSD, the new wage subsidy will be open for applications by the end of the week, Friday August 21.

How much will it cost the government?

According to Robertson, the new wage subsidy extension will cost the government around $510m. Fortunately, there was an amount left over from the initial Covid-19 wage subsidy fund that could cover the cost, Robertson said on Friday.

The government also has $14b of the Covid-19 fund that it had held back in the event of a development such as the current outbreak.

What has the reception been?

While the support is likely to provide a great deal of relief for both employers and employees throughout the next two weeks, businesses typically have many other expenses besides wages that they will need to continue to pay.

Business leaders and industry representatives have welcomed the subsidy, but they say it doesn’t go far enough to protect already frail businesses from imminent collapse.

“We will see a massive reduction in retail spending nationwide over the next 12 days. Retail businesses typically operate on very low margins, and are critically reliant on cashflow coming in the door,” Retail NZ chief Greg Harford told RNZ.

Julie White, CEO of Hospitality NZ told RNZ targeted support would be needed to help those businesses that have greater expenses and overheads beyond wages.

“They have fallen short, we will need [them] to step up and recognise the impact on the income to hospitality, so we’ll be touching base and asking them to re-look at a sector-specific package,” she said.

While there are other tools the government has extended, such as the small business cashflow scheme and mortgage deferral scheme, targeted or industry-specific support has not yet been announced.