Western Cape Minister of Finance and Economic Affairs, David Maynier, has appealed to Minister of Employment and Labour, Thulas Nxesi, to reopen the Unemployment Insurance Fund’s COVID-19-driven Temporary Employee Relief Scheme (TERS) for the duration of the Level 4 restrictions to assist businesses and employees who are not able to operate.
“With the announcement by President Cyril Ramaphosa last night that South Africa will move to Adjusted Alert Level 4 restrictions for the next 14 days, it is critical that national government provide a support package for business whose operations are limited or shutdown,” he said.
David said many businesses, particularly in the hospitality and liquor sectors, had already been hard-hit with significant job losses during the pandemic. “Wine farms, restaurants and coffee shops cannot survive on takeaways alone. Two weeks of no income for these businesses, as well as cinemas, gyms, casinos, conferencing venues and theatres, will have a direct and sudden impact on people’s livelihoods – their ability to pay salaries, rent and buy food,” he said.
According to David, the UIF TERS funds could provide the lifeline that businesses and employees need to sustain their operations while these restrictions on the economy are in place.
This was echoed by Western Cape Premier, Alan Winde, who noted that the Level 4 restrictions would “undoubtedly wield a devastating blow” to the province’s economy, which relied heavily on the hospitality and agri-processing sectors.
“Many people, and especially poorer people, will lose their jobs in the Western Cape as a result of these restrictions,” he said.
Alan also called on national government to provide urgent financial support to those businesses impacted by these restrictions.
“It is not fair for the government to shift the burden to our mainly small businesses, especially when restrictions are imposed. There must be support for businesses affected by these restrictions to ensure that they survive, and that job losses are averted,” he said.
‘Jabs, not more restrictions, needed’
Meanwhile, City of Cape Town (CoCT) Committee Member for Economic Opportunities, James Vos, told Travel News that jabs, not more restrictions would save livelihoods and lives.
“Small businesses, which are the backbone of South Africa’s economy, cannot bear the brunt of these heavy restrictions,” he said, pointing out that the number of business liquidations in Cape Town had shot up by 49% between March 2020 and March 2021.
“In particular, the tourism and hospitality sectors are on their knees,” James commented, noting that the small businesses and individuals who provide services to these sectors – cooks, waitrons, cleaners – all faced renewed prospects of unemployment.
Instead of restrictions, James said, the public and private sectors should turn their collective energy to hastening the vaccine roll-out while allowing businesses to trade freely under strict protocols.
In comments on tourism groups on social media, other industry members have highlighted the need for further financial assistance, including an extension of TERS.
