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Motelier calls for more Government support after losing home and retirement business from Covid-19
Tina Law05:00, Sep 09 2021This is a modal window.
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CHRIS SKELTON
Rod Gray owns the Fyffe on Riccarton motel. Forced to sell his retirement business and family home after losing thousands of dollars a week, he is calling on the Government to provide more assistance to businesses.
Rod Gray has sold his family home, his rental and his retirement business just to keep his motel running amid the fallout from Covid-19.
The Christchurch motelier and others across the country are calling on the Government to provide more support to the struggling sector.
Gray, who has owned Fyffe on Riccarton for six years, said he lost about $50,000 in revenue during August – and that was on top of a $240,000 drop last year due to Covid-19 lockdowns, border closures and travel restrictions.
August and September were lining up to be bumper months with a good level of bookings, but Gray said most have now been cancelled, with few new ones.
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“If Auckland can’t travel, level 2 is not much better for me than level 3.”
Last month the 16-room motel ended up with just $3190 of bookings. Gray had been expecting it to be $55,000.
Rent and rates alone cost $16,000 each month.
He has sold his family home, his last rental property and a mini storage company intended to provide an income in retirement. Some of the money was used to pay off loans and cut outgoings.

CHRIS SKELTON/Stuff
Gray has been forced to sell his home, his retirement business and make staff redundant to keep his business afloat.
Gray also had to make his managers redundant earlier this year, moving into the motel so he could manage it himself to save money.
His wife and two teenage children have been living with relatives since April.
Gray said he was in a much better situation than others in the industry because he and his wife also own property management company Christchurch Rentals Ltd, which provides them with a buffer. But many others did not have that.
The business is getting the wage subsidy, which pays the cleaners’ wages, but Gray said it did not help him pay the bills.
Supporting businesses through the wage subsidy was pointless if businesses were not supported too, Gray said.
Staff would be made redundant, regardless of the wage subsidy, if businesses were not able to survive.

CHRIS SKELTON/Stuff
Gray is losing thousands of dollars a week from his motel business, and wants more help from the Government.
He has received a one-off resurgence support payment of $2700, but that did not even cover a week’s rent, let alone power, rates, Sky and insurance.
Gray wants the Government to make that payment a weekly one, rather than a one-off.
“That would be a sensible thing to do. It would give people a chance. You can’t keep talking about the team of five million when you’re letting businesses go to the wall through no fault of their own.”
He also wants the Government not to charge businesses GST for a couple of months, and would welcome free rates for a period of time.
https://www.stuff.co.nz/authors/tina-law
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Tina Law • Senior reporter
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Peter Morrison, president of the Canterbury branch of Hospitality New Zealand, is supporting Gray’s call for more Government support as more and more hospitality businesses shut their doors.
“Last year many got into trouble because of Covid. They have not had a decent summer, and they’ve had an average winter and have come back into this with no savings.
“We’re going to end up with so many closures of motels and bars and restaurants.”


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Finance minister Grant Robertson said the Government was continuously monitoring and updating its support for business, and that the wage subsidy was still available to businesses operating in alert level 2.
“The financial supports are intended to help business and workers through this outbreak, as they did in previous outbreaks.”
He acknowledged it was hard for many businesses.
As for Gray, he was expecting the next two years to be difficult – and said he would try to hang on until the local sector was given a much-needed boost from the opening of the Metro Sports Centre, the Convention Centre and the stadium.