Contents page Page

Glossary 3

Executive Summary 4

Section 1: Introduction 7

• COVID-19 and New Zealand’s strategic response 8

• Decision making responsibilities 9

Section 2: Domestic response 13

• Epidemic management 14
• Alert Level framework 16

• Public communications and engagement 19

• Resurgence planning 20
• Vaccines and treatments 21

• Domestic response - key decisions and next steps 21

Section 3: Border management 24

• Border settings 25

• Immigration settings 26

• Managed Isolation and Quarantine Facilities 27

• Border management - key decisions and next steps 28

Section 4: Economic, social and international impacts and

response 29

• Economic and fiscal impacts 30

• Social impacts 31

• International relations and trade impacts 33

• Economic, social and international impacts - key decisions and next steps 35

Section 5: Summary of key decisions and next steps 37

• Domestic response 38

• Border management 38

• Economic and social impacts 39

Annexes
• COVID-19 legal framework 40

• Evolution of COVID-19 strategy and responses in New Zealand 42

• Current litigation 43

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Glossary

COVID- COVID-19 Group in the Department of Prime Minister and Cabinet (previously known as
19 COVID-19 All of Government Response Group, or AOG)
Group

CIRP COVID-19 Income Relief Payment

DHB District Health Board

DPMC Department of the Prime Minister and Cabinet

IAFC International Airfreight Capacity Scheme

IRD Inland Revenue

MoH Ministry of Health

MIQ Managed isolation and quarantine

MIQF
Managed Isolation or Quarantine Facility

MIAS
Managed Isolation Allocation System

MBIE Ministry of Business, Innovation and Employment

MPI Ministry for Primary Industries

MPP Ministry for Pacific Peoples

MSD Ministry of Social Development

NCMC National Crisis Management Centre

NEMA National Emergency Management Agency

NITC National Investigation and Training Centre

ODESC Officials’ Committee for Domestic and External Security Coordination

PHU Public Health Unit

TPK Te Puni Kōkiri

TTSTZ Trans-Tasman Safe Travel Zone

WHO World Health Organization

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Executive summary
Introduction
This briefing to incoming Ministers provides an overview of COVID-19. It outlines the legal framework for
the COVID-19 response, decision-making responsibilities, domestic management and border controls and
the social, economic and international impacts. This document also provides a summary of key decisions
and next steps in COVID-19 related portfolios, with indications of where Ministers may need to work closely
together on cross-portfolio issues.

COVID-19 was first reported in Wuhan, China in December 2019. On 30 January 2020, having received
evidence of person-to-person spread of the virus in other countries, the World Health Organization (WHO)
declared that the outbreak constituted a Public Health Emergency of International Concern (PHEIC)1. This
triggered recommendations to all countries aimed at preventing or reducing the cross-border spread of
disease. In March 2020 the WHO declared COVID-19 a pandemic.

By October 2020 the virus has spread to over 200 countries, with over 38 million people infected. Around
30 million people have recovered, and over a million have died. Internationally, around 20 percent of people
infected will need hospital care, and around 20 percent of these will be admitted to intensive care. It is
increasingly evident that some people who recover can suffer from a variety of long-term health problems.

Although the disease affects people of all ages, it is often more severe in those who are older than 60
years or who have health conditions like lung or heart disease, diabetes, obesity, or conditions that affect
their immune system. Socioeconomic status, gender, age, inequitable access to health care, and increased
exposure to the virus due to occupation can also make people vulnerable to the disease.

New Zealand’s strategic response

New Zealand’s response to the risk presented by COVID-19 is an agile elimination strategy – a sustained
approach to keep it out, find it and stamp it out, that balances health, economic and social impacts. The
actions within this strategy sit within three broad areas:

• Domestic settings – This includes both core public health responses and, where necessary, legal
controls to find and stamp out the virus when it emerges in the community.

• Border settings – This includes border restrictions (who can come into New Zealand) and ensuring
those who arrive with the virus do not spread it further, including through the operation of Managed
Isolation and Quarantine Facilities (MIQF).

• Economic, social and international response – Mitigating the economic and social impacts of the
virus; both its impact on the global economy and flow on effects to New Zealand, as well as the
impacts of control measures in place.

Legal framework and decision-making

The COVID-19 Public Health Response Act 2020 (the COVID-19 Act) provides the legal authority for the
majority of decision-making in relation to the COVID-19 response. It was enacted in May 2020 and provides
measures to mitigate the risk of an outbreak and manage the spread of the virus should one occur, while
allowing social, economic and other factors to be taken into account. The COVID-19 Act sits alongside the
Health Act 1956, which provides additional pandemic control powers. Annex 1 provides more detail of the
legal framework and powers related to COVID-19.

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Cross-government system

COVID-19 affects all aspects of life in New Zealand – health, economic and social. Many government
agencies are involved in delivering health services, managed isolation facilities, supporting compliance
with regulations, international negotiations, procuring essential health and other supplies, and supporting
individuals, families, sectors and communities. Leadership and coordination across government is
provided by the Department of Prime Minister and Cabinet (DPMC) COVID-19 Group.

Decision-making in most cases rests with the relevant Ministers and their agencies, with high levels of co-
ordination and collaboration across government. The configuration of Ministerial portfolios relating to key
aspects of the COVID-19 response is a decision for the new administration. However, certain roles are
defined in legislation – for example, the role the Minister of Health has in signing Orders under the COVID-
19 Act, following consultation with the Prime Minister and Minister of Justice. In practice, Cabinet is likely
to oversee key strategic and policy decisions relating to the COVID-19 response.

Domestic response
Test-trace-isolate are the key tools for managing any epidemic because they break the chains of
transmission of an infectious disease and are therefore an essential public health tool for controlling
infectious disease outbreaks. Test-trace-isolate can be seen in both the approach taken at the border and
to domestic cases. Outbreaks are managed by rapidly detecting and isolating cases and their contacts.
Good personal hygiene, face coverings and physical distancing are also important for managing the
transmission risk of a virus that is primarily respiratory in nature. Healthcare systems have had sufficient
capacity to provide the care and treatment required by individuals with the virus.

Alert Level Framework

The Alert System is a 4-level framework that specifies legal controls and other measures that are needed
to manage and stamp out COVID-19 at different stages in an outbreak. Alert Levels help people understand
the current level of risk and the restrictions that legally must be followed.

Applying this framework involves an assessment of risk by Cabinet, informed by advice from the Director-
General of Health. The Minister of Health then determines, in consultation with the Prime Minister, Minister
of Justice and any other relevant Minister, which controls to impose through an Alert Level Requirements
Order under the COVID-19 Act, which may be applied at a national or regional level.

Public communications and engagement

Communication with the public is one of the most critical aspects of the response to COVID-19. This has
focused on giving people the information and encouragement they need to minimise the likelihood of
community spread. One of the key features of the communications strategy has been the simplicity of the
messaging, and the Alert Level framework has been a useful tool in this regard.

Border Management
Since 19 March 2020 the people allowed to enter New Zealand have been limited to New Zealand citizens
and residents, their families, Australian citizens or residents ordinarily resident here, diplomatic and
consular personnel, and air and cargo crew. A small number of exceptions have been agreed for non-
New Zealanders to enter New Zealand, for a range of reasons including their specific skills (e.g. critical
healthcare workers) and for other economic and humanitarian reasons. Anyone entering New Zealand
must undergo managed isolation or quarantine for 14 days, with tests at day 3 and day 12. There are
limited exceptions to this requirement for diplomats and air crew.

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Social, economic and international impacts
The economic impact of the COVID-19 crisis has been severe. The economic policy response has been
effective to date in cushioning the immediate impact overall, although some sectors are still seriously
affected. However, the economy is now facing a significant period of economic adjustment and higher
unemployment. The path of the disease and its effective management, both domestically and
internationally, are the most critical determinants of the economic outlook in the near-term. The long-term
effects will likely be experienced for years after economic growth has returned, as we have seen following
other economic downturns.

We have seen increasing need from communities across New Zealand and expect this to continue. This
need will be influenced by the impacts of COVID-19, and its effect on jobs, the economy, families and
overall community wellbeing. Psychosocial recovery from the crisis will take many years, as we have seen
in other national emergencies in New Zealand.

The IMF and OECD estimate that the global economy will contract by 4.5 percent this year, before growing
5 percent in 2021. New Zealand’s export sector and international supply chains have taken a severe hit
from COVID-19, making a focus on trade and export growth important. While COVID-19 does not
fundamentally change the global geostrategic landscape, it does intensify existing challenges and
pressures on New Zealand’s foreign policy. The Pacific and Australia remain a focus for foreign policy,
with the possibility of Safe Travel Zones and quarantine-free travel a key issue.

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Section 1

Introduction
• COVID-19 and New Zealand’s strategic response
• Decision-making responsibilities

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COVID-19 and New Zealand’s strategic response
COVID-19 is caused by the coronavirus SARS-CoV-2 1 and was first reported in Wuhan, China, in
December 2019. On 30 January 2020, having received evidence of person-to-person spread of the virus
in other countries, the World Health Organization (WHO) declared that the outbreak constituted a Public
Health Emergency of International Concern (PHEIC) 2. This triggered recommendations to all countries
aimed at preventing or reducing the cross-border spread of disease. On 10 March 2020 the WHO declared
COVID-19 a pandemic.

By October 2020 the virus had spread to over 200 countries, with more than 38 million people infected.
Around 30 million people have recovered, and more than a million have died. Internationally, around 20
percent of people infected will need hospital care, and around 20 percent of these will be admitted to
intensive care. It is increasingly evident that some people who recover can suffer from a variety of long-
term health problems.

Although the disease affects people of all ages, it is often more severe in those who are older than 60
years or who have health conditions like lung or heart disease, diabetes, obesity, or conditions that affect
their immune system. Socioeconomic status, gender, age, inequitable access to health care, and increased
exposure to the virus due to occupation can also make people vulnerable to the disease.

Māori and Pacific communities are particularly vulnerable to the effects of COVID-19 because the
population is highly urbanised, face financial challenges, and many are living in damp, cold and
overcrowded housing which increases the risk of transmission of infectious diseases. Furthermore, they
have a disproportionate burden from long-term conditions, and relatively poor access to primary and
secondary health and disability care. This vulnerability was demonstrated during the second COVID-19
outbreak in August/September, where 83 percent of community cases were Māori and Pacific peoples.

New Zealand’s overall strategic response – elimination

New Zealand’s response to the risk presented by COVID-19 is an agile elimination strategy – a sustained
approach to keep it out, find it and stamp it out, that balances health, economic and social impacts. The
actions within this strategy sit within three broad areas:

• Domestic settings – This includes both core public health responses and, where necessary, legal
controls to find and stamp out the virus when it emerges in the community.
• Border settings – This includes border restrictions (who can come into New Zealand) and ensuring
those who arrive with the virus do not spread it further (using managed isolation or quarantine).
• Economic and social response – Mitigating the economic and social impacts of the virus; both its
impact on the global economy and flow on effects to New Zealand, as well as the impacts of control
measures in place.

This briefing is organised around these three areas, following a brief description of the decision making
framework for government COVID-19 response decisions. Annex 2 provides a summary of the timeline for
the outbreaks in New Zealand – the original outbreak, and the August 2020 Auckland resurgence.

1
Coronaviruses cause infections in the respiratory system. Seven coronaviruses are known to infect humans, including Sudden
Acute Respiratory Syndrome (SARS), a problem in the early 2000s, and Middle East Respiratory Syndrome (MERS), in 2008.
2
A PHEIC is defined as a serious, unusual or unexpected health crisis that poses a public health risk to other countries through
international spread, potentially requiring an immediate, coordinated international response.

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Decision Making Responsibilities
Legislative Responsibilities

Specific Ministers have legislative responsibilities and decision rights in relation to COVID-19 under the
legislative framework set out in Section 2 below and in Annex 1. In addition, the Director-General of Health
has some statutory decision rights.

• Minister of Health – responsible for a range of public health decisions, including the making of
Orders under the COVID-19 Act (for example, Alert Level Orders, and Orders requiring managed
isolation for people travelling to New Zealand);
• Minister of Housing – responsible for decisions relating to the operation of Managed Isolation and
Quarantine facilities;
• Minister of Immigration – responsible for which categories of non-New Zealanders can travel to
New Zealand;
• Director-General of Health – able to make Orders and issue directions to manage the pandemic.

Cabinet

Cabinet has previously considered key COVID-19 policy issues prior to Ministers exercising their decision
rights as set out above. In particular, Ministers may wish to take items to Cabinet on the overall COVID-19
strategy, Alert Levels, border settings, key public health measures, and measures to address the economic
and social impacts of the pandemic. In addition, there is a legislative requirement for the Minister of Health
to consult the Prime Minister and Minister of Justice and other relevant Ministers on Orders made under
the COVID-19 Act.

Cabinet has previously been informed in its consideration of key issues by advice from the Director-General
of Health. This is usually written into Cabinet papers to support Cabinet discussions but may also be
provided orally (via the Minister of Health) where “real time” information is required (for example, in relation
to the progress of a community outbreak, and decisions on Alert Levels).

Cabinet makes arrangements for consultation or urgent decision making requirements which fall outside
its scheduled meeting times.

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Figure 1 –Decision making process

The National Security System and the government response

The COVID-19 outbreak has been a major national security challenge, and the government response
involves a wide range of government agencies. For example, the Ministry of Health leads on the public
health response, whereas the Ministry of Business, Innovation and Employment leads on managing
immigration settings and Managed Isolation and Quarantine facilities (MIQF). The scale, complexity and
long-term nature of the impacts of COVID-19 have created a need for strong system leadership and
governance to ensure that the response is well integrated, comprehensive and balanced. This is described
below:

Officials Committee for Domestic and External Security Coordination (ODESC)

The Officials Committee for Domestic and External Security Coordination (ODESC) - is a committee of
Chief Executives which manages national security in New Zealand. During an emerging or actual security
event, ODESC:

• provides all-of-government coordination of the issues at the Chief Executive level,

• provides strategic advice on priorities and mitigation of risks beyond the lead agency’s control;

• ensures that the lead agency and those in support have the resources and capabilities required to
bring the response to an effective resolution;

• provides the linkages to the political level, including supporting Ministers to make decisions about
strategic policy, authorisation of resources or any other decisions which sit within Ministers’ area of
control; and

• exercises policy oversight and advises the Prime Minister, Cabinet, and, when activated, the Cabinet
National Security Committee, accordingly.

ODESC does not override the responsibilities which individual Chief Executives or Ministers have to take
decisions in their own areas of concern.

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In the case of the COVID-19 pandemic, ODESC met frequently and guided the response to the initial
outbreak. The response was coordinated at a practical level by activation of the National Crisis
Management Centre (NCMC).

National Response Leadership team

The ongoing nature of the COVID-19 response led (with Cabinet agreement) to the creation of a National
Response Leadership team, a smaller grouping of Chief Executives that focused on responding to the
COVID-19 resurgence. Membership comprised:

• Chief Executive of the Department of Prime Minister and Cabinet

• Director-General of Health

• Chief Executive, National Emergency Management Agency

• Commissioner of Police

• Secretary of the Treasury; and

• Deputy Chief Executive (COVID-19 Group) DPMC.

DPMC COVID-19 Group

The COVID-19 Group was established within the Department of the Prime Minister and Cabinet (DPMC)
on 1 July 2020, following the deactivation of the NCMC on 30 June. While the Group does not have any
direct legislative or statutory responsibilities, it provides central coordination and leadership across
government. The key functions of the group are:

• providing advice to the Government on its COVID-19 strategy and progress made such as scenario
testing, decision frameworks and advising on major decision points by weighing up trade-offs to
provide policy neutral strategic advice.

• leading the public communications strategy, providing advice on public engagement, and ensuring
coordination and consistency of messages from government, such as the Unite Against COVID
campaign, social media, iwi and Pacific communities’ engagement.

• ensuring expectations and accountabilities for delivery of the strategy are clear across government,
such as developing a risk register and assurance framework, driving consistent communications
across the system; and

• coordinating, and only where necessary leading, the response across government and facilitating the
transition to recovery, such as leading the National Resurgence Plan and testing agencies’ readiness
through exercises.

Ministry of Health - lead agency for domestic health response

As the lead agency, the Ministry of Health has primary responsibility for policy advice on the health
response for managing COVID-19. It is also responsible (alongside DHBs and other providers) for
operational delivery of health services including testing, contact tracing and treatment. In practice, both
policy and delivery involve working closely with other parts of government so that the response is
integrated.

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MBIE – lead agency for immigration settings and operating Managed Isolation and
Quarantine Facilities

Stopping the virus from entering New Zealand is a cornerstone of the strategy for managing COVID-19.
The immigration settings for who can travel to New Zealand, and the operation of Managed Isolation and
Quarantine Facilities, are both led by MBIE.

In the case of immigration settings, a multi-agency Senior Officials Group has been established to provide
advice to Ministers on which groups of non-New Zealanders should be permitted to travel to New Zealand
as exceptions.

The operation of Managed Isolation and Quarantine Facilities is the overall responsibility of MBIE and
involves close working with the Ministry of Health and DHBs which are responsible for the provision of
health services to residents including testing. Testing requirements are also applied to border workers,
including staff operating MIQF facilities, and to others such as higher risk port and airport workers.

Other Chief Executive Groups

Other Chief Executives groups, provide additional and more focused oversight, coordination and
governance. These include the Border Sector Governance Group, which involves the various Chief
Executives with responsibilities at the New Zealand border; the Economic Chief Executives Group, which
has a focus on the economic impacts of, and response to, the outbreak, and the Caring for our
Communities Governance Group, which brings together the CIMs Emergency structures with public
service agencies in the social sector during response activity, resurgence preparation and planning and
recovery. In addition, a COVID-19 Chief Executives Board has been convened to oversee the longer term
COVID-19 response.

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Section 2

Domestic response – overview

• Epidemic management
• Alert Level framework
• Public communications and engagement
• Resurgence planning
• Vaccines and treatments

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Epidemic management
Test-trace-isolate are the key tools for managing any epidemic. Outbreaks are managed by detecting and
isolating cases and tracing their contacts, who in turn are tested and isolated as required. Test-trace-isolate
breaks the chains of transmission of an infectious disease and is therefore an essential public health tool
for controlling infectious disease outbreaks. Good personal hygiene, face coverings and physical
distancing are also important for managing the transmission risk of a primarily respiratory virus.

The current global COVID-19 pandemic will end if population immunity is reached through effective
vaccination or treatments. However, we do not yet know if, or when, these will be developed.

Testing

Testing is important for detecting cases so that they can be contact traced and quarantined. The
surveillance plan for COVID-19 includes testing all people in MIQF, higher risk border workers, anyone
with COVID-19-like symptoms, and close contacts of people who have tested positive for the virus.
Asymptomatic testing of at-risk communities may also be considered in an outbreak.

Currently, testing is undertaken via nasopharyngeal swab. The option of saliva testing is being considered,
but more research is required to ensure the accuracy and viability of any saliva test before it is offered in
New Zealand. Laboratory capacity rose from 12,000 per day (before the August 2020 Auckland
resurgence), to 26,000 samples per day during August, as the resurgence was being managed and public
attention to the issue rose. This capacity can be maintained for 1-2 weeks, with greater surge capacity for
the initial 3-4 days of an outbreak. There is a good supply of testing materials including swabs and reagent,
and the Government receives weekly reports on stock on hand, which usually sits at around 250,000 test
kits available at any one time. Under normal circumstances, testing turnaround time is 24-48 hours, with
the ability to prioritise samples in some cases. As new testing technologies become available, testing
turnaround time should decrease, with a corresponding increase in laboratory capacity.

New Zealand’s rates of testing against confirmed cases are high by international standards:

Figure 2 – International comparison of testing rates

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Contact tracing and isolation/quarantine 3

Contact tracing capacity in New Zealand has been increased from about 10 cases per day to about 500,
with plans to increase this further. The NZ COVID Tracer app assists contact tracing via scanning QR
codes. Other technology enhancements are also being investigated. The efficacy of contact tracing
depends on adherence with isolation and quarantine.

Contact tracing involves interviewing an infected case and establishing their movements and contacts.
Close contacts are then called and instructed to get tested and go into self-isolation for 14 days. The aim
is to trace and isolate 80 percent of close contacts of a case, within two days of identification and four days
of their exposure to the case.

The case interviews are generally undertaken by Public Health Units (PHUs) and calls to close contacts
are generally undertaken by the National Close Contact Service. The National Telehealth Service
(Healthline) also undertakes wellbeing calls for people in isolation.

In early March, contact tracing capacity in New Zealand was about 10 cases per day. Since then, a range
of improvements have been made including establishing the National Investigation and Training Centre
(NITC), to provide national leadership and coordination and to supplement PHU capacity and a common,
nationwide IT platform. A national, culturally-responsive contact tracing service has also been established
for hard-to-reach close contacts of Pacific peoples. Alongside re-engagement with NITC, this Equity
Outreach Service provides social needs assessments, spot testing, and self-isolation support to Pacific
families. The service has the potential to be adapted to other population groups.

Collectively, PHUs have the capacity to investigate 350 cases per day and have adopted plans to surge to
500 cases per day if required. However, complex contact tracing situations (such as high numbers of
contacts per case, and complications arising from cultural differences) may sometimes reduce this
capacity.

Additional surge capacity is being established within the Ministry of Health, with the aim of maintaining 100
fully trained standby investigators and establishing agreements for a further 400 investigators drawn from
across government at short notice.

Technology can assist in contact tracing by enabling people to remember where they were, identify
unknown contacts and speed up the notification of possible contacts. The NZ COVID Tracer app enables
the scanning of QR codes to record a visit to a business or service. All businesses and services must
display QR codes.

There is a trial underway of a COVID card, which uses Bluetooth technology to record contacts between
people. The Ministry of Health is also evaluating the incorporation of Bluetooth technology into the NZ
COVID Tracer app.

All cases and close contacts need to be isolated or quarantined for contact tracing to succeed. Currently,
confirmed cases are generally put into quarantine in a managed facility to reduce the risk of spread. Close
contacts generally self-isolate at home, with wrap-around support to ensure that they can do this effectively.
This support includes daily health checks, day 12 testing and support to ensure that all of their welfare
needs are met.

3
In New Zealand, the term quarantine is used when someone is segregated from others because they have the virus. The term
isolation is used when someone is deemed to have an elevated risk of infection, but this has not been confirmed.

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Hygiene, face coverings and physical distancing

Hygiene, face coverings and physical distancing reduce the risk of transmission of COVID-19. These
measures can be encouraged or made legally enforceable.

Individuals, groups and communities can take a variety of measures to reduce the risk of transmission of
COVID-19. These include good hygiene, face coverings and physical distancing. Good hygiene measures
are difficult to legally enforce. The Alert Level system and supporting Orders create a legal framework for
requiring face coverings and physical distancing in specific circumstances. Public communications can
educate and reinforce compliance with both legal requirements and public health guidance.

Good hygiene

Good hygiene measures are important for preventing the spread of COVID-19. These include:

• washing and drying your hands,

• coughing or sneezing into your elbow,
• staying home if sick and getting tested.

Face coverings

Face coverings, masks in particular, have been shown to be effective at reducing transmission of COVID-
19 when there is community transmission.

Physical distancing

Physical distancing includes any measure to increase the physical distance between people. Physical
distancing includes maintaining a distance of 1 or 2 metres from other people, size limits for gatherings,
working from home, and closing certain types of businesses, services and venues.

Alert Levels Framework

The Alert Levels system is a simple 4-level framework that specifies legal controls and other measures
needed to manage and stamp out COVID-19 at different stages in an outbreak. It has been used to guide
decisions on the response to date, as well as a basis for public communication.

Alert Level decisions are generally made by Cabinet and involve an assessment of risk, informed by advice
from the Director-General of Health. The Minister of Health then determines, in consultation with the Prime
Minister, Minister of Justice and any other relevant Minister, which controls to impose through an Alert
Level Requirements Order under the COVID-19 Act, which may be applied at a national or regional level.
The Alert Levels framework, including requirements and recommendations for each Alert Level, is
summarised overleaf. 4

The controls and restrictions at each Alert Level reflect the information available to date and can be
updated to reflect new scientific knowledge about COVID-19, and information about the effectiveness of
intervention measures in New Zealand and elsewhere. There are two current legal challenges to COVID-
19 restrictions, set out in Annex 3.

4
The measures described are “standard” Alert Level settings. In Auckland, during certain stages of the resurgence, different size
limits for gatherings and requirements for food businesses applied

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Alert Level Risk Assessment Range of Measures (mix of legal obligations and encouragement, can be applied locally or nationally)

Level 4 - • Sustained and • People instructed to stay at home in their bubble other than for essential personal movement – with the definition of ‘essential
Lockdown intensive personal movement’ being more limited than Alert Level 3.
Likely the community • Safe recreational activity is allowed in local area.
disease is transmission is
• Travel is severely limited, including restrictions on inter-regional travel.
not occurring
• All gatherings cancelled and all public venues closed.
contained • Widespread
outbreaks • Businesses closed except for essential services (e.g. supermarkets, pharmacies, petrol stations) and lifeline utilities.
• Educational facilities closed.
• Requirements around physical distancing and measures to support contact tracing etc.
• Rationing of supplies and requisitioning of facilities possible.
• Reprioritisation of healthcare services.
Level 3 - • Multiple cases • People instructed to stay home in their bubble other than for essential personal movement (ie work, school, or for local recreation)
Restrict of community • Physical distancing of two metres outside home, or one metre in controlled environments like schools and workplaces.
High risk the transmission
• People must stay within their immediate household bubble but can expand this to reconnect with close family / whānau, or bring in
disease is occurring
caregivers, or support isolated people. This extended bubble should remain exclusive.
not • Multiple active
• Schools (yrs 1 to 10) and early childhood centres can safely open with limited capacity. Children should learn at home if possible.
contained clusters in
multiple regions • People encouraged to work from home unless that is not possible.
• Businesses cannot offer services that involve close personal contact, unless it is a supermarket, pharmacy, petrol station or
hardware store providing goods to trade customers, or it is an emergency or critical situation.
• Other businesses can open premises but cannot physically interact with customers.
• Low-risk local recreation activities are allowed.
• Public venues are closed (e.g. libraries, museums, cinemas, food courts, gyms, pools, playgrounds, markets).
• Gatherings of up to 10 people are allowed only for wedding or civil union services, funerals and tangihanga. Physical distancing
and public health measures must be maintained.
• Healthcare services use virtual, non-contact consultations where possible.
• Inter-regional travel is highly limited where an adjacent area is at a different alert level (e.g. for critical workers, with limited
exemptions for others).
• People at high risk of severe illness (older people and those with existing medical conditions) are encouraged to stay at home
where possible and take additional precautions when leaving home. They may choose to work.
• QR codes must be displayed in workplaces and on public transport to enable contact tracing via the NZ COVID Tracer App.

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Alert Level Risk Assessment Range of Measures (mix of legal obligations and encouragement, can be applied locally or nationally)

Level 2 - • Limited • People can socialise in groups of up to 100, go shopping, or travel domestically, if following public health guidance.
Reduce community • Keep physical distancing of two metres from people you don’t know when out in public or in retail stores. Keep one metre physical
The disease transmission distancing in controlled environments like workplaces, where practicable. Physical distancing is not required on public transport.
is contained, could be
• Face coverings required on public transport and aircraft (but not inter-island ferries) – school buses and children under 12 are
but the risk occurring
exempt along with passengers in taxis or ride share services and people with disabilities or mental health conditions.
of community • Active clusters
• No more than 100 people at gatherings, including weddings, birthdays and funerals and tangihanga.
transmission in more than
one region • Businesses can open to the public if following public health guidance including physical distancing and record keeping. Alternative
remains ways of working encouraged where possible.
• Hospitality businesses must keep groups of customers separated, seated, and served by a single person. Maximum of 100 people
in a defined space.
• Sport and recreation activities are allowed, subject to conditions on gatherings, record keeping, and if practical physical distancing.
• Public venues such as museums, libraries and pools can open if they comply with public health measures and ensure one metre
physical distancing and record keeping.
• Event facilities, including cinemas, stadiums, concert venues and casinos can have more than 100 people at a time, provided that
there are no more than 100 in a defined space, and the groups do not mix.
• Health and disability care services operate as normally as possible.
• It is safe to send children to schools, early learning services and tertiary education.
• People at higher-risk of severe illness from COVID-19 (e.g. those with underlying medical conditions, especially if not well-
controlled, and seniors) are encouraged to take additional precautions when leaving home.
• QR codes must be displayed in workplaces and on public transport to enable contact tracing via the NZ COVID Tracer App.
Level 1 - • COVID-19 is • Border entry measures to minimise risk of importing COVID-19 cases.
Prepare uncontrolled • Intensive testing for COVID-19, rapid contact tracing of any positive case, together with self-isolation and quarantine.
The disease overseas
• Schools and workplaces open and must operate safely.
is contained • Sporadic
• No restrictions on personal movement but people are encouraged to maintain a record of where they have been.
in New imported cases
• No restrictions on gatherings but organisers are encouraged to maintain records to enable contact tracing.
Zealand • Isolated local
transmission • Stay home if you’re sick, report flu-like symptoms.
could be • Wash and dry hands, cough into elbow, don’t touch your face.
occurring In • No restrictions on domestic transport – avoid public transport or travel if sick.
New Zealand
• No restrictions on workplaces or services, other than QR codes must be displayed. Contact tracing encouraged.

Page 18 of 43
Public communications and engagement

Public communication and engagement play a crucial role in the Government’s response to COVID-19. The
public communications response is led by DPMC’s COVID-19 Group

Supporting mass compliance with the Alert system rules has been the primary communications objective. This
has been achieved by effectively mobilising the wider capacity of government, local government and core
partners’ communications, along with the DPMC COVID-19 Group maintaining a range of channels, especially
the Covid19.govt.nz website, paid advertising and social media. The Unite Against COVID-19 campaign has
been a significant part of the response, providing a pathway for decisions to be communicated directly to the
public. Key policy changes are simplified, translated, and disseminated to people in New Zealand through
these channels, which has generated high levels of voluntary public compliance.

A key focus of the communications approach has also been to counter misinformation, rumour and
disinformation. Additionally, the challenges of fatigue and other psychosocial and economic impacts may
begin to erode compliance at all Alert Levels.

It will be important to maintain an active public communications campaign for the foreseeable future, and to
utilise the campaign and wider channels to increasingly support economic and social resilience and recovery
from the impacts of COVID-19.

The COVID-19 Group’s communications team manage a range of channels in order to reach all
New Zealanders with important information, such as Alert Level changes or health behaviours. These include

• Paid advertising, which significantly improves the reach to people quickly in the event of resurgence or
Alert Level changes. The paid advertising channels utilised include television, print, radio, social media,
OOH (Out of Home e.g. billboards), video on demand.

• Social media, both a broadcast and customer service channel. Since 1 April 2020, approximately 2000
pieces of content have been posted across four social media channels (Facebook, Instagram, LinkedIn
and Twitter). During Alert Level 4 each post reached two million people on average. Official social media
sites have received more than 210,000 comments and messages.
• The Covid19.govt.nz website has become the authoritative source of information for people in
New Zealand, and has been visited more than 21.5 million times. When New Zealand moved to Alert
Level 3 or higher, the website received significant spikes of traffic, with 1,514,339 users visiting the site
over 23-24 August, and 1,120,060 users over 11-12 August. Information is published in English, te Reo
Māori, New Zealand Sign Language, 22 other languages and 5 alternative accessible formats.

Iwi and Māori organisations play a key role in engaging and distributing key messaging to their audiences,
this includes providing targeted audience-centric engagement and communications. Translations have gone
beyond simple literal translations, to refocusing messaging to acknowledge what is most affecting identified
communities. The Ministry for Pacific Peoples (MPP) led a cross agency communications initiative to ensure
Pacific communities and Pacific stakeholders can easily access accurate information, including translated
content, to increase their understanding of government announcements, guidelines and support available to
them.

A key focus of the public health response has been countering misinformation, rumour and disinformation.
The strategy to respond is guided by four key ideas: rapid intervention to provide an alternative to the
mis/disinformed narrative; an inclusive approach that recognises audience diversity; seeking media/social

Page 19 of 43
media agreement to slow/stop the spread of inaccurate information; and direct engagement that is respectful
and culturally appropriate, encourages participation, and empowers through dialogue.

An active public information campaign will be important to maintain for the foreseeable future. A particular
challenge in Alert Level 1, where there are few legal controls or restrictions on people, will be addressing
complacency and encouraging people to continue those simple behaviours (good hygiene, recording
movements, avoiding gatherings if feeling unwell) that reduce the possibility and severity of any community
outbreak. Additionally, the challenges of fatigue and other psycho-social and economic impacts may begin to
erode compliance at all Alert Levels.

In the event of any future community-based outbreak, trusted and effective communications will again be one
of the key elements to successfully stamping it out. Continuing to challenge misinformation will also be an
ongoing necessity.

Resurgence planning
Although the August 2020 Auckland outbreak has been brought under control, there is a high level of planning
for further resurgences. Work continues on a National Resurgence Response Plan to coordinate and
operationalise a nationally-led, regionally-delivered response to any further resurgence of COVID-19. The
development of the plan is led by DPMC and is an iterative process based on the Rapid Response plan agreed
by Cabinet in August 2020 and informed by lessons from the August resurgence in Auckland.

Objectives of the plan include enabling effective decision making (nationally and locally), supporting the health
system response, coordinating social and economic support for communities, coordinating public information
and communications, and supporting and contributing to intelligence. Any response will comprise an
assessment of community transmission, an immediate response to enable further information to be gathered,
and a sustained response. The plan sets out governance and decision-making structures at the national and
regional levels and shows when Ministers will be briefed and decisions they will need to take. The plan will
set out improvements in how regional borders will be operationalised given they were a difficult point during
the August Auckland resurgence. Officials will brief relevant Ministers as the plan evolves.

Page 20 of 43
Figure 3 – Resurgence roles and responsibilities

Vaccines and treatments

New Zealand has a vaccine strategy to secure access to a safe and effective COVID-19 vaccine. New Zealand
is participating in the global COVAX facility, pursuing bilateral advance purchase arrangements with
manufacturers and developing an immunisation programme to deliver a vaccine. A number of treatments for
COVID-19 are currently being trialled internationally.

Vaccines
Clinical trials are being conducted on several vaccine candidates but there are many unknowns such as long-
term effectiveness, effectiveness for the elderly and immuno-compromised, and the impacts on viral
transmission. We should start seeing trial results from late November 2020 for vaccines currently in the last
stage of clinical trials. These trial results will give us a greater understanding of potential efficacy.

Page 21 of 43
In May 2020, Cabinet agreed a vaccine strategy which aims to secure an adequate supply of a safe and
effective vaccine against COVID-19. A multi-agency taskforce has been established to deliver the strategy.
The taskforce is following international developments and assessing the trade-offs between getting access to
a vaccine quickly and its longer-term effectiveness.

Alongside many other countries, New Zealand has made a legally binding commitment and upfront payment
to the COVAX Facility. The COVAX Facility is a global risk-sharing mechanism for pooled procurement and
equitable distribution of eventual COVID-19 vaccines. With this, New Zealand seeks the option to purchase
available vaccines with coverage for up to 50 percent of the population of the Realm of New Zealand (New
Zealand, Tokelau, Cook Islands, and Niue). New Zealand has successfully advocated for access to vaccines
for most Pacific Island countries through the COVAX Advance Market Commitment and is working with partner
governments and other regional partners to support vaccine access and successful immunisation campaigns,
especially in Polynesia.

The Government has signed an agreement to purchase 1.5 million COVID-19 vaccines – enough for 750,000
people – from Pfizer and BioNTech, subject to the vaccine successfully completing all clinical trials and
passing regulatory approvals in New Zealand. s9(2)(j)
The COVAX Facility and the agreements
with pharmaceutical companies will form a portfolio of vaccines that will be sufficient for the whole population.

s6(a) Producing enough doses of an effective

vaccine will be an unprecedented global challenge, and New Zealand can play a role by developing its own
domestic capability. s9(2)(k)

Medsafe is ensuring that the regulatory approval process is timely and of high quality, so that any vaccine
approved for use in New Zealand meets domestic and internationally agreed criteria for quality, safety and
efficacy. Environmental Protection Agency approval under the HSNO Act will also be required for some
vaccines as they constitute new organisms into New Zealand.

Immunisation
The Ministry of Health is developing an immunisation programme to deliver a safe and effective vaccine. The
programme aims to achieve sufficient population immunity and ensure protection for frontline workers, Māori,
Pacific peoples, older people, and other population groups at particular risk from COVID-19. Key
considerations include equity of outcomes and distribution for Realm countries and the broader Pacific.

The immunisation programme will be reviewed and adapted as relevant information becomes available on
vaccine development or on the virus itself. Preparations for implementing the programme include
considerations of workforce capacity and capability; timing and delivery; logistics and supply chain
management, and technology to support effective delivery of the programme. Work is also underway to
replace the current National Immunisation Register to better support a broader range of immunisation settings,
consumer engagement, prioritisation of population groupings, and tracking of vaccine distribution. The
Ministry of Health will continue to be guided by expert advice from the WHO and New Zealand expert groups
on all aspects of vaccine and immunisation planning.

Treatments
At present, there are few proven treatments for people who are suffering from COVID-19; however, a variety
of treatments are being trialled internationally for their effectiveness. These include a steroid that reduces
inflammation, an antiviral drug that slows the replication of the virus, and laboratory-made antibodies. The

Page 22 of 43
Section 3

Border management – overview

• Border settings
• Immigration settings
• Managed Isolation and Quarantine Facilities

Page 24 of 43
Border settings

The New Zealand border has been closed since 19 March 2020 to all except New Zealand citizens and
residents, their families, Australian citizens or residents ordinarily resident here, diplomatic and consular
personnel, and air and cargo crew.

Limited exceptions are available for non-New Zealanders who are critical workers, people with humanitarian
reasons to travel, partners of New Zealanders (from visa waiver countries), some temporary visa holders
normally resident in New Zealand and some other agreed groups. In general, the thresholds for these
exceptions are high. Demand for entry to New Zealand by non-New Zealanders remains high.

Anyone entering New Zealand must stay in a managed isolation and quarantine facility (MIQF) for at least 14
days, with tests at day 3 and day 12. There are limited exceptions to this requirement for diplomats and air
crew. Maritime crew (seafarers on cargo vessels mainly) are not generally tested for COVID-19 and conduct
their isolation while on board their vessel, so vessels can continue operating around New Zealand.

The MIQ fees regime began on 11 August 2020. Fees are charges for non-New Zealanders, New Zealanders
entering temporarily, and for New Zealanders who left after the fees regime entered into force. The Managed
Isolation Allocation System (MIAS) allows people to book their place in MIQ before flying and present a
voucher upon check in at the airport.

Border entry
Regulating entry to New Zealand is managed under the Immigration Act 2009. Under that Act, persons other
than New Zealand citizens must hold a visa to travel to and be in New Zealand, and the Minister of Immigration
may issue immigration instructions, controlling the circumstances in which visas may be granted. New Zealand
citizens do not require a visa to enter New Zealand, and entry restrictions cannot be applied to New Zealand
citizens under the Immigration Act. This reflects their right of entry under section 18 of the New Zealand Bill
of Rights Act 1990. Permanent residents, and holders of other resident class visas who have already been in
New Zealand on those visas, are treated similarly to citizens and generally cannot be subject to entry
restrictions.

To prevent, or limit the risk of, an outbreak or spread of COVID-19, those persons that are permitted to enter
New Zealand are then subject to the requirements of either the:

• COVID-19 Public Health Response (Air Border) Order (No 2) 2020 or the

• COVID-19 Public Health Response (Maritime Border) Order (No 2) 2020

These Orders require most individuals arriving in New Zealand to enter managed isolation and quarantine.
The COVID-19 Public Health Response (Isolation and Quarantine) Order 2020 sets out the requirements of
isolation and quarantine. The recovery of charges relating to managed isolation or quarantine is prescribed
by the COVID-19 Public Health Response (Managed Isolation and Quarantine Charges) Regulations 2020.

Air
The New Zealand air border has been closed since 20 March 2020 to all but a very limited number of foreign
nationals. The closure of the border was put into effect by the Minister of Immigration via amending
immigration instructions under the Immigration Act.

Page 25 of 43
The restriction of entry into New Zealand has greatly reduced air passenger flows. This has had significant
economic and social impact, particularly on the tourism, international education and aviation sectors.

The air border closure continues to have serious downstream impacts for many of our exporters and importers
who are reliant on air freight, much of which is normally carried on passenger air services. The Government’s
International Air Freight Capacity Programme (under which the government provides funding to international
airlines in return for guaranteed freight capacity), in combination with airfreight operated on a purely
commercial basis, means that around 90 percent of pre-COVID 19 export freight volumes, and 70 percent of
pre-COVID import freight volumes are currently being achieved.

Figure 4 - International commercial air passengers by month (Source; NZ Customs Service internal data)

Maritime
New Zealand’s maritime border has been closed to cruise ships and most private vessels, but cargo and
fishing vessels, and some other specialist vessels are allowed to enter. Other limited exemptions for Antarctic
Research and Supply Vessels are also in place. These decisions are given effect under immigration
instructions under the Immigration Act and under the Maritime Border Order noted above.

Most vessels arriving in New Zealand are commercial vessels (cargo and fishing vessels mainly). Crews on
these vessels entering New Zealand must complete isolation which is normally on the vessel. Crews on
commercial vessels seeking to take shore leave are tested when they arrive in New Zealand and can be given
permission to take shore leave if they present a low risk i.e. it has been 14 days since the crew had contact
with anyone (or a crew change occurred), no-one on the vessel has had COVID-19 symptoms in the previous
14 days, and all persons on the vessel return a negative test.

Additional foreign vessels (mainly private foreign vessels such as yachts) want to enter New Zealand. This
can be because the visas of people on vessels in various places in the Pacific are expiring; people cannot
easily travel home or go elsewhere; New Zealand is fairly free of COVID-19; these vessels are seeking refuge
from the Pacific cyclone season; or people want to come to the America’s Cup racing.

Immigration settings
Reflecting consideration of humanitarian, social and economic need, exemptions and exceptions to the closed
border are currently available for the circumstances listed below. These were decided by the then Cabinet
and are given effect under immigration regulations and instructions.

Page 26 of 43
 Border exemptions – categories or people who are exempt Border exceptions - categories of non-New Zealanders that
from the border restrictions. In addition to NZ citizens and can be approved case-by-case to come to New Zealand,
residents, this group includes: including:

• partners, guardians and children of a citizen or • people travelling for humanitarian reasons.
resident, if ordinarily resident in New Zealand, • citizens of Samoa and Tonga for essential travel to
travelling with the person, or have a visa based on New Zealand;
that relationship; • temporary visa holders normally resident in New
• Australian citizens and permanent residents who are Zealand with strong connection to New Zealand
ordinarily resident in New Zealand; • partners or dependents of temporary work or visa
• diplomatic and consular personnel; and holders who normally live in New Zealand;
• people described in Regulation 25 of the • replacement cargo ship crew arriving by air;
Immigration (Visa, Entry Permission, and Related • marine crew arriving by the maritime border;
Matters) Regulations 2010 – this includes air crew, • essential health workers, their partners and
cargo ship crew, members of foreign armed forces dependents, and
travelling on military craft, people travelling from • other critical workers, their partners and dependents.
Antarctica.

Demand for entry to New Zealand by non-New Zealanders remains high. During 2020 there has been a
gradual opening to key groups. As at 20 October 18,775 Expressions of Interest (EOIs) 5 were received for
family of a New Zealand citizen/resident exceptions, 7098 of which were successful. 9,623 EOIs were received
for family of a temporary visa holder exceptions, 1,222 of which were successful. 14,260 EOIs were received
for humanitarian exceptions, 1,409 of which were successful. 4,438 EOIs for critical health worker exceptions
have been received, of which 2,568 were successful. 1,471 EOIs for critical workers have been received, of
which 611 have been approved.

In August 2020 a Ministerial group was established to consider border exceptions for groups. The following
groups have been permitted entry (several with caps on numbers): veterinarians, rural contractors, deep water
fishing crews, personnel involved in priority defence programmes, some PhD students, and high priority
foreign nationals transiting to the Pacific.

Managed Isolation and Quarantine Facilities

(MIQF)

The COVID-19 Public Health Response (Air Border Order) was issued to require people entering New Zealand
from another country to remain in managed isolation or quarantine for at least 14 days.

The Director-General of Health has directed that confirmed community cases should be isolated at a location
(such as a dedicated facility) determined by Medical Officers of Health. Most community cases in the August
2020 Auckland resurgence were moved to a managed quarantine facility to minimise the risks of further
spread.

MIQ is a complex system which includes accommodation facilities, transport, personnel, information systems,
testing and broader health services. It enables positive COVID-19 cases to be detected early after arrival to

5
This number of Expressions of Interest may include some duplicates

Page 27 of 43
New Zealand and isolated from the community. Delivering the MIQ system involves significant
interdependencies between MIQ, Health, Immigration, NZDF, Police, Transport and Customs agencies.

The most recent instrument related to MIQF is the COVID-19 Public Health Response (Isolation and
Quarantine) Order (No 2) 2020, of 20 September 2020. This Order outlines requirements around medical
examinations, testing, isolation and quarantine, and restricted entry to facilities. The Minister of Health has
the discretion to exempt people or classes of people from any requirements that are imposed by the Order.

Responsibility for managing air arrivals through MIQ was transferred to MBIE in June 2020, where it currently
sits within the portfolio of the Minister of Housing. Customs has responsibility for maritime border processes.
If maritime arrivals require isolation or quarantine, they are transferred into the wider MIQF system.

From 11 August 2020, New Zealanders who enter temporarily, or who leave New Zealand and then return,
are charged for their stay in MIQ. Temporary visa holders are also required to pay, unless they left New
Zealand on or before 19 March 2020, and were ordinarily resident in New Zealand as of 19 March 2020. All
critical workers entering New Zealand are liable for charges. There is a process in place to waive charges in
cases of undue financial hardship and other special circumstances.

The fee was set at a level that ensured it was not an unjustified limitation on people’s right to return to
New Zealand. New Zealand citizens and permanent residents have the right to enter and leave New Zealand
under the Bill of Rights Act and the Immigration Act.

The Managed Isolation Allocation System (MIAS) is a web-based booking system allowing travellers to have
a pre-booked place in a MIQ facility before entering New Zealand by air. The requirement to have booked a
place in an MIQ facility before arriving in New Zealand, unless exempt, will become a legal requirement from
5 November. As at 19 October, 20,946 people have allocations secured over the next three months. There
are plans to upgrade the MIAS system to allow greater functionality including prioritisation between different
types of entrant.

Border management - key decisions and next

steps

• Decisions around immigration settings are needed early in the next term of government. These decisions
will include consideration of the current settings for critical workers and other exceptions as well as the
possibility of allowing larger groups to enter. This work will be led by MBIE.

• In the short term, decisions on the ongoing supply of managed isolation and quarantine facilities will also
be needed. Ministers may wish to consider the current MIQF model, including the booking system and
the overall costs. Portfolio Ministers will receive advice about the quantum and timing of funding needed
if the current settings continue. This advice will be led by MBIE.

• Increased demand from foreign vessels to enter New Zealand is expected over coming months as general
exemptions to the Maritime Border Order (e.g. an expected request for a general exemption for craft
wanting to come to New Zealand for the America’s Cup). Ministers will receive advice from border
agencies to aid decisions for the overall approach to this challenge.

• Funding decisions will be required in a range of areas, including for MIQF provision, the aviation sector,
(including maintenance of air freight capacity), and the operational costs of the border agencies that are
substantially funded from third party fees and charges. Border agencies will lead this advice.

Page 28 of 43
Section 4

Economic, social and international

impacts and response – overview
• Economic and fiscal impacts
• Social impacts
• International relations and trade impacts

Page 29 of 43
Economic and fiscal impacts

The economic impact of the COVID-19 pandemic has been severe.

The rapid introduction of measures, particularly successive versions of the wage subsidy, has cushioned the
immediate impact of the pandemic on households and businesses.

However, the economy is now facing a significant period of economic adjustment and higher unemployment.

The path of the disease and its effective management, both internationally and domestically, are the most
critical determinants of the economic outlook in the near term.

The Pre-Election Economic and Fiscal Update (PREFU) forecasts the economy will shrink by 3.1 percent in
2020 and 0.5 percent in 2021 before growth resumes in 2022. There remains a high level of uncertainty
around economic projections due to the path of the disease (see Figure 5).

Figure 5: Forecasts of Real GDP growth (LHS) and Net Core Crown Debt (RHS)

Forecast Real GDP growth Net core Crown debt

The economic policy response has been large, swift and effective in cushioning the immediate impact. The
rapid introduction of measures, particularly successive versions of the wage subsidy, provided broad and
immediate support for New Zealanders, reducing the impact on businesses and job losses in the face of a
sharp reduction in economic activity. These income support measures are expected to end by mid-
November 2020.

Prior to the resurgence, the economy experienced a rapid return to activity in many sectors as health
restrictions were reduced earlier than expected. The economy now faces a lengthy period of economic
adjustment and a slow and uneven recovery. The key challenge, in light of an uncertain outlook, is to adopt
policies that increasingly shift the balance to a more rapid resumption of growth and employment.

The strong Crown balance sheet prior to the pandemic has helped absorb the fiscal impact from COVID-19.
Lower growth and a large fiscal policy response resulted in a significant deterioration in the fiscal position.
However, there remains adequate fiscal space to adopt cost-effective temporary economic response
measures to circumstances as they arise. In the near term, there remains $14.1 billion in the COVID-19

Page 30 of 43
disproportionately represented in such groups in the past and have already been laid off at a significantly
higher rate than New Zealand Europeans per capita since February this year. Disabled people have
experienced longstanding barriers to accessing employment and it will be more difficulty to navigate in
tightened labour market competing with other displaced workers. Disability employment providers, including
business enterprises, that rely on the sectors affected by COVID-19 to employ disabled people have
particularly been impacted. While older people are less likely to be in material hardship due to COVID-19 than
younger people, some are experiencing financial difficulties and more older people are struggling financially.

Income disruption may make it harder for some New Zealanders to meet their current and future financial
obligations, including servicing debts and saving for retirement. According to the OECD, even before COVID-
19, 53 percent of New Zealanders did not have enough liquid assets to live above the national relative income
poverty line for three months if their income were to suddenly stop, significantly worse than the OECD average.

Loss of income will have flow on effects for housing, health care and food affordability with food insecurity
already being higher for Māori and Pacific peoples. The March lockdown in Alert Level 4 saw a spike in the
demand for food parcels, which has now eased, but remains substantially higher than in recent years.

Housing will continue to be a significant challenge, with rising unemployment leading to further housing
stresses for lower income families. This is demonstrated by increased uptake of financial assistance for
housing costs, increased use of emergency housing and a high and growing public housing register and
general housing waitlists. Recent data has shown an increase of older people on the public housing register,
although that is still lower than for other age groups.

The impact of COVID-19 on tourism and accommodation sectors means that emergency housing needs for
the homeless and rough sleepers were able to be met through the use of motels. Long term, the availability
of housing will continue to be a pressure.

Social and psychosocial impacts

For households where resources are diminished or strained, social impacts may be felt through increased
general anxiety, and a greater risk of family conflict, violence and abuse, including elder abuse. Although
family violence levels, as reported by Police, remain similar to pre COVID-19 levels, ongoing monitoring will
be required to establish whether the impacts of COVID-19 are having a long-term effect.

Long periods of absence from school due to Alert Level restrictions has caused significant disruption to
learning and engagement for New Zealand’s young people, particularly for Māori and Pacific children (see
Figure 8). The Ministry of Education is working with schools, kura and early learning services and Kōhanga
Reo to address attendance issues, re-engagement in learning and wellbeing for children and young people.

Figure 8: Rates of Auckland students not attending school at all in two weeks after the August 2020 Auckland
lockdown (Source: Caring for Communities, Ministry of Education)

Page 32 of 43
COVID-19 has also highlighted issues for those who are digitally excluded, and who therefore face additional
challenges with social connection, access to key goods and services, including internet banking, and
education. The substantive move to online learning has highlighted the inequity of access to digital
connectivity, including for tertiary students. The Ministry of Education continues to work to address barriers to
affordability for devices and internet connectivity. Older New Zealanders may also experience increased
isolation

Early in the response, Caring for our Communities was established to coordinate the socioeconomic response
and recovery of regions and communities. Caring for our Communities leads engagement with the 16
established regional leadership groups, which have broad representation from local government (at Mayor or
Chief Executive level), central government (Regional Public Service Leads and/or other regionally based
public service leaders) and Iwi (at chair or Chief Executive level). Regional leadership groups provide
governance and local leadership to recovery and resurgence planning, response activity and recovery.

International relations and trade impacts

While COVID-19 does not fundamentally change the global geostrategic landscape, it does intensify existing
challenges and pressures on New Zealand’s foreign and trade policy.

The IMF and OECD estimate that the global economy will contract by 4.5 percent this year, before growing 5
percent in 2021. New Zealand’s export sector and international supply chains have taken a severe hit from
COVID-19, making a focus on trade and export growth more important than ever.

The Pacific and Australia remain a focus for foreign policy, with Safe Travel Zones/quarantine-free travel a
key issue. In the Pacific, COVID-19 is causing economic crises and has set back development gains.

Helping New Zealanders offshore (consular work) is expected to need ongoing focus, as well as ongoing
assistance to assist foreign nationals in New Zealand who are experiencing serious hardship.

While East Asia saw the earliest cases, at October 2020, the Americas and India are the centre of the
pandemic, and cases are rising strongly again in Europe. While many countries managed initial outbreaks
effectively, many have found subsequent outbreaks more difficult to contain. The IMF and the OECD both
estimate the global economy will contract by around 4.5 percent this year 6. Global output fell in the first half
of 2020 with declines of more than 20 percent in some advanced and emerging-market economies, and global
trade contracted by more than 15 percent. The fall in output was largely due to weaker household
consumption. Without the policy support introduced in all economies, the contraction in output would have
been substantially larger. Output picked up following the easing of confinement measures, but the global
recovery has lost momentum in recent months. Business and consumer confidence, business investment,
and international trade remain weak.

The IMF and OECD project global GDP will expand by 5 percent in 2021. This remains heavily conditional on
the progress of the pandemic and assumes that sporadic outbreaks will be dealt with by local interventions
rather than national lockdowns and that a vaccine is not widely available until late 2021. A resurgence in the
virus or more stringent containment measures could halve that growth rebound. Even with this recovery,
output at the end of 2021 is expected to remain below that at the end of 2019 for most countries. Many major
advanced economies could have lost the equivalent of 4-5 years of per capita real income growth by 2021

6
OECD Interim Economic Outlook, 16 September 2020, IMF World Economic Outlook, 7 October 2020.

Page 33 of 43
and much of the progress in reducing global poverty since the 1990s will have been reversed. Furthermore,
“scarring” effects are expected to persist over the medium term.

The Indo-Pacific area looks likely to emerge from the crisis in better shape than other regions and has
historically demonstrated resilience. Most of our key markets are in this region. Hosting APEC in 2021 could
help New Zealand to influence the region’s response to COVID-19 and signal New Zealand’s position.

On trade recovery, while agriculture exports fared well initially, Treasury predicts a 15.4 percent drop in overall
exports for the year ended June 2021. In response, government agencies are focused on supporting exporters
and trade recovery by tackling trade barriers, supporting international airfreight to enable New Zealand exports
to reach their markets and using our offshore network to help businesses stay connected. New Zealand’s
Trade Recovery Strategy includes negotiating new trade agreements.

Supply chains and the freight sector have remained mostly resilient, despite the air border closure reducing
freight capacity. This is partly because sea freight, which made up about 99.7 percent of trade volume and 80
percent of trade value in 2019, has not been as seriously disrupted as air freight. There continues to be an
increase and recovery in demand and flows of goods across the border are now largely at pre-COVID-19
levels. Nonetheless emerging pressures on sea freight are arising from competing international demand for
container services, congestion issues at the Ports of Auckland, and travel restrictions hindering the
changeover of shipping crews globally. The Ministry of Transport has been supporting international airfreight
through the International Airfreight Capacity (IAFC) Scheme and is monitoring the pressures on sea freight,
as well as the longer-term impacts of COVID-19, to ensure we can continue to support our imports and
exports.

In the Pacific, despite the low number of cases, COVID-19 has caused significant economic crises. The region
has seen GDP contract 6.1 percent (twice the global average) and continues to be vulnerable to outbreaks.
New Zealand has supported more than 5000 stranded Pacific nationals to return home safely. More broadly,
New Zealand is partnering with Pacific countries on humanitarian outbreak response; health security and
preparedness (including vaccines); regionalism and borders (including work on the Recognised Seasonal
employer scheme and safe travel zones); economic resilience; and security and stability. This will include
discussions on the Recognised Seasonal Employer Scheme. Sustained policy and development (aid)
interventions in the Pacific will be required.

Discussions are well advanced on a Trans-Tasman COVID-19 Safe Travel Zone (TTSTZ) though some key
aspects are still to be resolved; in the meantime, Australia has unilaterally opened some of its states to
travellers from New Zealand, as have some other countries. An arrangement text has been agreed in principle
at officials-level with the Cook Islands to facilitate quarantine-free travel when it is safe to do so. Initial
discussions are under way with Niue on quarantine-free travel. s6(a)
A number of other countries are COVID-free and/or
have expressed interest in quarantine-free travel with New Zealand; Ministers will be asked to give ongoing
direction to these areas of work.

Providing consular support

The COVID-19 pandemic required the largest and most complex consular response in New Zealand’s history,
with more than 1,300 consular cases relating to the pandemic and nearly 55,000 general enquiries since 1
March 2020. The limited availability of flights to return remains an issue, although the number of
New Zealanders seeking government help with travel-related consular problems is reducing. More than 5,000
New Zealanders have been repatriated on 110 non-scheduled flights. Increasingly these flights are being
organised by private charter operators. Demand for consular services is expected to continue given the

Page 34 of 43
deteriorating global COVID-19 situation and the need to book a place through the Managed Isolation
Allocation System (MIAS).

There are approximately 297,250 temporary visa holders in New Zealand. Foreign diplomatic missions
provide consular assistance to their own citizens, but a short-term support programme (1 July to 30 November
2020) led by the Department of Internal Affairs provides in-kind assistance to foreign nationals experiencing
serious hardship due to COVID-19. New Zealand has supported foreign governments to undertake
repatriation flights, with 105 flights departing New Zealand between 3 April and 5 October 2020.

Ministers, officials and exporters are not able to undertake the same range of activities abroad, and so
Embassies, High Commissions and Consulates are already being called on to do more. At the same time,
New Zealand’s offshore diplomatic network is facing ongoing operating challenges as some posts temporarily
close and some offshore staff return to New Zealand.

Economic, social and international impacts - key

decisions and next steps

Economic

• The immediate economic and fiscal management challenges are:

o decisions about investment to build resilience to COVID-19, including decisions about health and
social sector capacity and investment in vaccines;

o development (or extensions of current policies) of a comprehensive set of economic responses

that can flex to respond to resurgence events and different alert levels restrictions;

o developing a package of measures to support a more rapid return to full employment; and

o resetting a medium-term economic strategy that recognises the weaker and more uncertain
economic and fiscal backdrop and the existing inequalities in social and economic outcomes.

• Decisions will need to be made about whether to resume or replace temporary income support measures,
such as the wage subsidy, the COVID-19 Income Relief Payment (CIRP) and leave support schemes.
Details of these will be covered in briefings from the Treasury, MSD and MBIE. As many of these
measures have already or will end by mid-November, early discussions with portfolio Ministers may be
required.

Social

• MSD has commenced some early work on factors that support community resilience, with a particular
focus on Auckland following the August 2020 resurgence. This will lead to some further work and
recommendations for a medium-term plan. There is a role for Te Puni Kōkiri (TPK) and the Ministry for
Pacific Peoples (MPP) to bring Māori and Pacific economic focus to this work.

International policy

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• Foreign and trade policy settings will require ongoing review in light of the COVID-19 context. In the
Pacific, COVID-19 will require consideration of sustained policy and development (aid) interventions.

• A key policy focus will be how New Zealand will re-open to the rest of the world, and when. This set of
issues will require consideration of the course of the pandemic in New Zealand and elsewhere in the
world, labour market and economic factors, and social and humanitarian factors, as well as international
obligations. Portfolio Ministers will be asked to give ongoing direction to these areas of work. DPMC’s
COVID-19 Group will support coordinated advice.

• Ministers can expect to receive updates on the current Safe Travel Zone negotiations with Australia and
quarantine–free travel with the Cook Islands and Niue for decision at the appropriate time.

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Section 5

Key decisions and next steps - summary

• Domestic response
• Border management
• Economic, social and international impacts

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Annex 1: COVID-19 Legal Framework

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Annex 2: Evolution of COVID-19 Strategy and Response in New Zealand

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Annex 3: Current litigation [Legally privileged]
The COVID-19 response decisions are subject to the usual processes for scrutiny and challenge. There
are currently two active applications relating to judicial review.

Borrowdale v Director-General of Health [2020] NZHC 2090

Mr Borrowdale brought a judicial review application claiming:

• There was no legal authority for the public announcements made by the Prime Minister and other
officials during the first 9 days of the lockdown.

• Orders made by the Director-General of Health for lockdown at Alert Levels 4 and 3 were ultra vires
(exceeded the powers prescribed by section 70 of the Health Act).

• The Director-General’s delegation of defining “essential businesses” in Alert Level 4 to unnamed MBIE
officials was unlawful.

The first of these claims was upheld in a judgment of 19 August 2020. The High Court declared that the
first 9 days of Alert Level 4 lockdown, while justified, was unlawful. Mr Borrowdale has appealed to the
Court of Appeal regarding the causes of action that were not upheld by the High Court. We anticipate the
appeal will be heard in 2021. This proceeding is confined to the Alert Level 4 and 3 periods during March–
May 2020 (when Alert Level restrictions were implemented under the Health Act). s9(2)(h)

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