Earthquake support subsidy extended

The Government is extending the wage subsidy to support employees of small businesses seriously disrupted by the Canterbury earthquake.

Acting Social Development Minister Judith Collins says the Earthquake Support Subsidy for businesses with fewer than 20 staff will be extended for four weeks.

"This subsidy is to help small businesses pay their staff while they get operational again and we know some are still really struggling," says Ms Collins.

The second round applications will face a more rigorous process.

"We were initially very flexible with employers who couldn't provide documentation for example immediately after the earthquake, that period of leniency will no longer apply," says Ms Collins.

This extension is for a set period of one month from today and will not continue to be extended.

The Government will then look to wind down the scheme as Canterbury businesses make their own arrangements in the aftermath of the earthquake.

The Government has paid more than $8 million to support almost 10,000 employees.

"Our commitment to support the people of Canterbury is ongoing, we're certainly in this for the long haul," says Ms Collins.