NAB boss touts Melbourne Cup as freedom day if vaccination rates persist, mandatory staff jabs a possibility

NAB CEO Ross McEwan has touted a Melbourne Cup freedom day for the nation if vaccination rates persist, as he also flagged potentially mandating jabs for some bank staff.

NAB CEO Ross McEwan said more clarity from federal and state governments over the reopening timeline was required. Picture: Aaron Francis

National Australia Bank chief executive Ross McEwan has touted a Melbourne Cup freedom day for the nation if vaccination rates persist, and flagged potentially mandating jabs for bank staff with high levels of customer contact.

Mr McEwan said if the pace of Covid-19 vaccinations continued the nation could emerge from hiatus when it hit 70 per cent of the population double dosed around November 2, or Melbourne Cup day.

Speaking at a virtual Australian British Chamber of Commerce event on Wednesday, he also highlighted that the 80 per cent threshold for the fully vaccinated would likely be met on November 20.

“This country will fire again … there’s a pathway out now and it’s called vaccination,” Mr McEwan said, noting that measuring and focusing on vaccination rates was key. “The second of November, we could call it freedom day in Victoria, because it’s the Melbourne Cup day.”

The United Kingdom dubbed July 19 “freedom day” as the government there lifted the bulk of the remaining pandemic restrictions, due to swelling levels of vaccination.

Despite the latest prolonged lockdowns hitting many NSW and Victorian businesses hard, Mr McEwan is not convinced they will trigger a double dip recession in Australia. NAB has, though, markedly cut its 2021 gross domestic product estimate to about 2.15 per cent from 5 per cent.

“There’s a lot of money sitting around because people are sitting at home not able to spend, they are getting very frustrated … they’ll come out and they’ll want to actually get out and get to restaurants, bars, shopping,” he said.

NAB – the nation’s largest business bank- expects spending and activity to rebound quickly as restrictions lift, despite lingering concerns among some economists this recovery will be slower as Covid-19 remains circulating through the community.

Victorian Liberal senator David Van on Wednesday stressed that greater numbers of small and family businesses were teetering close to collapse, requiring higher levels of state government assistance and a clearer path out of lockdowns.

He cited the plight of events company Harry the Hirer which has had to stand down 1000 employees and tapped into savings to stay afloat.

“Without the grand final, the Caufield Cup or the Spring racing carnival Rick (Jamieson) says he may have to close his doors forever,” Mr Van said.

Mr McEwan noted while NAB was strongly encouraging vaccines for staff, there may come a point where the bank could mandate jabs for branch staff and mobile bankers as the economy reopened.

The Australian on Monday revealed that a senior Australian Banking Association working group was gauging views to understand if the sector should mandate vaccines for branch staff.

“I think we are going to have to look at that later in the year as we start to get our colleagues much closer to customers again,” Mr McEwan said, of NAB following Qantas‘s decision to mandate vaccines for customer-facing staff.

“We’ve got a very good group in our branch network and our business bankers and corporate bankers who are out seeing customers all the time, we’re going to have to look at them at some point in time.

“Let’s encourage them first, is my view.”

Mr McEwan’s comments came as Goldman Sachs became the latest global bank to make it compulsory for staff to be fully vaccinated to enter its US offices from September 7.

A survey undertaken by NAB last month showed 80 per cent of Australians said they would get vaccinated, 10 per cent were open to being convinced and 10 per cent said they didn’t want the jabs.

Mr McEwan also urged more clarity from federal and state governments over the reopening timeline.

“People need hope … we need ‘this is what you get when you actually get to this level and when you get to 80 per cent, this is what you get,’” he added.

“The more clarity we give around that very point, the more people will get their heads up and focus on it.”

Mr McEwan said it did not make sense for different states to forge ahead with varied reopening plans, because it would make the Covid-19 recovery more difficult.

“Let’s play one country, it’s called Australia … We’ve got a national plan, let’s stick with it and then this economy will open up and it will grow.

“The danger for business is … the unknown and businesses don’t invest as well when there’s unknowns.”

NAB released a report that showed Covid-19 uncertainty was the biggest impediment to robust investment intentions, with 50 per cent of its business customers doing well, 40 per cent struggling and 10 per cent doing it very tough.

Mr McEwan said more broadly businesses were still grappling with complex tax and regulatory regimes, meaning for small businesses it could take up to 20 hours to put a new employee on.

Separately, NAB and its major rivals welcomed the expansion of eligibility criteria for the SME Recovery Loan Scheme, which sees the federal government guaranteeing 80 per cent of the loan amount.

Commonwealth Bank’s head of business banking Mike Vacy-Lyle said: “Many require access to credit to help them through this period, and the expansion of SMERLS is an excellent initiative.”

The SME Recovery Loan Scheme builds on earlier iterations of the Covid-19 program, which has seen loans totalling around $6.2bn written.

The loans – which have scope for repayment holidays of up to two years – are available until the year’s end.