National's Economic Development spokesperson Todd McClay is calling on the Government to commit to a two-year moratorium on additional government costs on businesses as New Zealanders struggle under the weight of border closures and a slowing economy.

Fewer businesses are operating across the country than there were before the nationwide lockdown a year ago.

The latest StatsNZ figures highlight the impact of the pandemic, showing there were more than 1000 fewer businesses in January than there were in January last year.

The drop follows an increase of 10,500 businesses the year before the country's borders closed.

'New Zealand is facing an unprecedented level of business closures without urgent government action," says McClay.

'In 2019 New Zealanders created 10,500 new businesses. In January this year there were 1000 fewer than the same time one year ago – a net loss of 11,500 in the last calendar year.

'The business closure rate increased by a significant 130 per cent in 2020.”

Between April last year and January, the number of businesses closing exceeded the number of businesses starting out.

BusinessNZ chief executive Kirk Hope says it is not surprising fewer people wanted to risk opening a new business.

"There were businesses who were hard hit already before we went into lockdowns, particularly in tourism and hospitality and parts of retail, so it's not a surprise that some those businesses haven't survived."

He says the number of closures was less than first expected.

"That is quite a low number of business closures and it speaks to the high volume of support that was provided to keep people attached to businesses."

He says it demonstrated how critical government support was for businesses to survive lockdowns.

StatsNZ is collating the business entries and exits data for a regional breakdown, which is likely to be available in a few months' time.

Kirk says it is likely that would show Auckland and tourism towns had borne the brunt of the downturn.

National MP Todd McClay says that behind every business that has closed are hard-working New Zealanders who deserve a Government focused on reducing cost and burden, not imposing more.

'The 1 April changes coming into effect this week, the minimum wage increase combined with doubling of sick leave, extra public holidays and union-heavy labour law changes, will be the final nail in the coffin for many Kiwi businesses," says McClay.

'These costs alone equate to $2.8 billion before accounting for the burden of extra government red tape.

'With the Government refusing to announce the date for a trans-Tasman bubble they are condemning thousands of New Zealand businesses to the scrap heap and that means more job losses for Kiwis already struggling under increasing costs of rent and food.

"This month alone we've seen the Whakatane Mill which has operated for 80 years, Mountain Air Ruapehu (33 years), Espressoholic Wellington (30 years), and O'Connell's Bistro Auckland (24 years) announce they're closing," says McClay.

'At a time when fruit is left rotting on trees and essential industries can't get workers across the border, the Government shouldn't be making it harder for Kiwi businesses to pay their staff.

'New Zealanders need a Government that's on their side. They deserve better.”