Prime Minister under pressure to offer JobKeeper to Victorians as lockdown extended for second week

Scott Morrison has hinted at the real reason he is reluctant to help Victorians stood down without pay for two weeks by the covid lockdown.

Scott Morrison has hinted at the real reason he is reluctant to help thousands of Victorians stood down without pay for two weeks by the covid lockdown.

The Prime Minister has today accused the states of having “jealously guarded” the right to decide when and how they lockdown entire workforces.

That’s a reference to failed negotiations in the national cabinet to formulate clear guidelines on “hot spots” that would provide uniform rules for lockdowns and border closures and may also provide a framework for income support for longer lockdowns.

And today the Morrison Government has stepped up that warning, briefing journalists that the Prime Minister doesn’t want to set a precedent and offer income support when the states choose to lockdown communities.

In Parliament, the PM was asked by Labor leader Anthony Albanese, “Does the Prime Minister take any responsibility for the ongoing lockdown in Victoria”, prompting a sharp reaction.

“As the Leader of the Opposition would be fully aware, the decisions to implement lockdowns in states and territories around the country are solely and totally the responsibility of state and territory governments,’’ Mr Morrison said.

“Solely and totally. The Commonwealth government is not part of the decision-making process.

“I am having further discussions with the acting premier this evening, as the Treasurer is having with the Treasury in Victoria. But lockdowns in states are decisions of state and territory governments, that is a responsibility that the states and territories have jealously guarded over the course of the pandemic and that is their responsibility and they are making those decisions and taking those responsibilities.”

Pressed on Sky News over whether the Morrison Government didn’t want to provide an “incentive” to lockdown, Mr Frydenberg simply noted that Victoria had locked down longer and harder than elsewhere.

But Labor’s treasury spokesman Jim Chalmers said the purported reason why the PM doesn’t want to help casuals stood down without pay was cruel.

“How cruel and out of touch must Scott Morrison be if he actually thinks Premiers would be ‘incentivised’ to lockdown their economies and lockdown their people,” Dr Chalmers told news.com.au.

“If that’s what Scott Morrison really thinks, he needs to tell Victorians.

“These lockdowns are because of his failures on vaccines and quarantine – not because states and territories are chasing a quick buck.”

Meanwhile, Treasurer Josh Frydenberg has vowed to consider urgent assistance for Victorian workers stood down without pay as the state faces another seven days in lockdown.

Speaking at a press conference in Canberra, Mr Frydenberg said while his position remains that states should be able to absorb the cost of a short, sharp lockdown, he accepted the situation was rapidly evolving.

“I will be speaking to the Treasurer. I will hear him out,’’ Mr Frydenberg said.

“I want to speak to the Treasurer first. I want to hear what his plans are. But I tell you as a Victorian it has been devastating.

“Victorians have been subject to 140 days of lockdowns. The average across the other states is just six days. This has been a terrible time.”

But Mr Frydenberg questioned why the entire state was in lockdown when places like Mildura didn’t have a case.

Earlier today, Acting Premier James Merlino begged Treasurer Josh Frydenberg to act on a JobKeeper-style scheme for Victoria after the state’s lockdown was extended for a second week.

The Morrison Government has been under pressure for days to overturn its reluctance to offer income support to states plunged into short, sharp lockdowns.

“As we did last week, we have also renewed our request to the Commonwealth to activate a JobKeeper-style support for Victorians who have been impacted by these restrictions,’’ Mr Merlino said.

“And I will be speaking to the Prime Minister later today and I do hope that the Commonwealth will swiftly confirm that they will step up and provide that support.

“If they do not, I will be raising this directly at national cabinet on Friday. A lot of Victorians, a lot of Victorian businesses, are doing it tough right now and it is our clear expectation that the Federal Government will provide them the support that they deserve.”

Mr Merlino said there was no choice other than to lockdown the state.

RELATED: Vic lockdown extended, changes to restrictions

James Merlino said there was no choice other than to lockdown the state. Picture: Daniel Pockett/Getty Images

“If we don’t do this, if we don’t do this, this thing will get away. This variant of concern will become uncontrollable and people will die. No-one – no-one – wants to repeat last winter,’’ he said.

Mr Merlino also confirmed an extension of business support for companies in Victoria after he previously announced a $250 million support scheme.

“Today I am also able to confirm that businesses most impacted by the extension of these public health restrictions including operators in hospitality, retail events and creative industries will receive further support,’’ he said.

“The Government is adding a further $209 million, this is on top of the $250 million package that the Treasurer and I announced on Sunday, and that will include $181 million to increase the business cost assistance program, increasing those grants from $2500 to $5000 in total.

“To make sure that businesses need only apply once and that they get their full payment in one go, the applications will now open tomorrow rather than today as planned.”

Treasury officials confirmed on Tuesday the government was considering options to offer some form of assistance to Victorian workers if the current lockdown was extended, as calls mount for the reintroduction of a JobKeeper-style scheme or pandemic payments.

Mr Frydenberg also hinted in a Facebook post on Sunday that if the situation changed, the Morrison Government would review the assistance on offer.

The JobKeeper scheme was axed in March after more than $28 million was paid out to Victorian employers in wage subsidies.

Treasury secretary Steven Kennedy has revealed in Senate estimates today that Mr Frydenberg has now requested advice around the lockdown including what assistance the Victorian Government has offered.

RELATED: Melbourne facing restrictions until June 15

There’s a growing push for a JobKeeper-style payment for Victoria. Picture: NCA NewsWire/Sarah Matray

“The Treasurer has asked us for advice around the lockdown,’’ Dr Kennedy said.

“In preparing advice we would explore all options.”

While the Morrison Government hasn’t offered special assistance during the current lockdown, it has previously funnelled more than $40 billion in JobKeeper subsidies and other assistance into the state.