Covid package to save jobs from longer lockdown

The NSW and federal governments will pay businesses to keep on workers in a plan to be unveiled today.

A near-deserted Fairfield in southwest Sydney on Monday. Picture: Saeed Khan, AFP

The NSW and federal governments will pay coronavirus-hit businesses to keep employees in their jobs in a rescue package to be unveiled on Tuesday afternoon, as industry leaders brace for Sydney’s lockdown to extend for another four to six weeks.

The Australian understands the payments will be contingent on companies committing to “no headcount losses’’ for the period of the lockdown and will be linked to their payrolls.

The package, to be jointly funded by the NSW and federal governments, is also likely to expand access to disaster payments to workers who have lost income as a result of the lockdown.

The package was finalised as the Australian Technical Advisory Group on Immunisation convened on Monday to revisit its guidance on the AstraZeneca vaccine, with Scott Morrison signalling earlier that the outbreak in Sydney could change the “balance of risk” calculation that it uses for people under 60.

Although ATAGI did not change its advice that Pfizer is the preferred vaccine for under-60s, a spokesman said the body would continue to review its guidance on AstraZeneca. The meeting occurred as it emerged that a 72-year-old South Australian woman died following a blood clot associated with the vaccine.

NSW recorded 112 fresh cases of COVID-19 in the 24 hours to 8pm on Sunday, with at least 34 cases known to have been active in the community while infectious. Case spikes were identified in the Fairfield local government area, the Canterbury-Bankstown region and the Liverpool local government area, which are considered hotspots of concern within Sydney.

The results prompted Gladys Berejiklian to harden her language around the likelihood of a prolonged, indefinite lockdown, with the Premier saying there would be no easing of restrictions until a sharp turnaround in the daily numbers was achieved.

“Given where the numbers are, it is not likely, in fact, (it is) almost impossible for us to get out of lockdown on Friday,” Ms Berejiklian said. “The length of the lockdown will depend on our ability to come together and to follow the health advice across the state.”

Economists warned that an extended lockdown would have national ramifications and dampen the economic recovery. CBA head of Australian economics Gareth Aird said an eight-week lockdown would wipe 1.5 per cent off GDP in the September quarter – about $7.5b, enough to wipe out even the most optimistic of growth forecasts and “send the entire country backwards”. The impact on the labour market was also likely to be severe. Mr Aird said analysis of detailed labour force data showed that during the national lockdown last year Greater Sydney lost 192,000 jobs between March and May.

Despite the economic hit, Deloitte Access Economics partner Chris Richardson said that even a further month of restrictions was unlikely to send the budget position backwards given the out-performance – including the blockbuster jobs growth and massive iron ore earnings – recorded since the May federal budget.

With industry leaders preparing for an extended lockdown, ¬attention has turned to the need for a comprehensive assistance package and stimulus measures to ensure the hospitality and tourism sectors are preserved.

“The commonwealth scheme last year was a (business activity statement) rebate; this will be a similar principle,’’ an official said.

Existing grants of $10,000 have already been announced by the NSW government for small businesses, at a cost of roughly $1.4bn. Some peak bodies have said the grant support is too low to support enterprises facing at least a month with their doors closed.

Restaurants and Catering Australia chief executive Wes Lambert said businesses stood to lose $7bn if the lockdown were to continue for up to six weeks, with comprehensive support required immediately to prevent permanent closures.

“Many businesses threw in every dollar they had to survive 2020,” Mr Lambert said. “Unfortunately there isn’t much left in the bank to now get them through winter 2021.

“The announced stimulus will be the difference between survival and failure for potentially thousands of businesses.”

Talks between the NSW and federal governments have canvassed an increase in the COVID-19 disaster payment, currently administered by the commonwealth and worth up to $500 a week; and an increase of the $10,000 hardship grants already provided by the state.

Some officials said discussions also centred on returning money to businesses through their monthly or quarterly business activity statements, and calculated through wages paid to workers, although these details were still under discussion.

Highlighting the growing number of teenagers and young adults entering hospital, health officials once again urged greater numbers of testing and pleaded with members of the public to stay at home.

Data released on Monday showed increasing numbers of cases involving 18 to 20-year-olds in the Georges River, Bayside and Sutherland areas of Sydney. There are currently 63 people hospitalised with COVID-19, some of whom have been admitted for observation.

NSW chief health officer Kerry Chant said 25 patients were aged under 55, with a further 14 patients aged under 35. She said 18 people were being treated in intensive care units, four of whom were receiving oxygen.

A NSW Health spokesman said that, with the exception of some elderly patients under observation, none had received both doses of a Covid-19 vaccine.

Dr Chant said one intensive care patient was in their 20s, another in their 30s, and a third in their 40s. A further five were aged in their 50s, six in their 60s, three in their 70s, with a final person aged in their 80s.

Officials were unable to outline whether any of the patients suffered from comorbidities, although Dr Chant said this information was being collected.

“That is dispelling the notion that you are not going to get sick from COVID if you’re young,” she said.

Moving to boost vaccinations, the NSW government announced on Monday that almost 10,000 teachers and aged care workers living in the city’s three hotspot zones would have access to priority inoculations from Friday. The doses would be provided at a new vaccine hub to be opened at Fairfield Showground.