NEW Zealand today announced a NZ$12.1 billion (RM31.6 billion) stimulus package to counter the economic shock of the coronavirus pandemic.

Finance Minister Grant Robertson conceded that “recession is almost certain”, but said the package – which focuses on wage subsidies, tax breaks and a boost to healthcare – will help cushion its impact.

He likened the government’s response to a defensive tackle by the country’s famous All Blacks rugby union team.

“We are in for a fight against an outside force beyond our control that is wreaking havoc around the globe. We are up for that fight,” he told Parliament.

“There is no better defensive line than the All Blacks, and it is just the same with our people as we face this virus.”

He said the package is just the first step in Wellington’s economic response, with further stimulus measures to be announced in the annual budget in May.

Wage subsidies for businesses hit by a virus-induced downturn total NZ$5.1 billion, while welfare recipients will receive about NZ$2.8 billion in additional payments.

Business tax breaks total some NZ$2.8 billion, with the balance going to measures such as additional healthcare and a NZ$990 million package for the aviation industry.

Robertson said the aviation support does not include direct government subsidies for Air New Zealand, which yesterday announced that it is scaling back to a skeleton operation throughout the Covid-19 crisis. – AFP, March 17, 2020.