Coronavirus: Decimated industries’ plea to retain JobKeeper

Industries decimated by COVID-19 say the full $1500 rate of JobKeeper must continue beyond September.

Restaurant and Catering chief executive Wes Lambert says the situation in Victoria and increasing concerns about NSW proved JobKeeper could not be switched off as scheduled.

Industries decimated by COVID-19 have seized on the six-week lockdown in Greater Melbourne to declare the full $1500 rate of JobKeeper must continue beyond September, amid calls from government MPs to target the program towards sectors most harmed by the pandemic.

With accommodation and food services the hardest hit during the pandemic, Restaurant and Catering chief executive Wes Lambert said the situation in Victoria and increasing concerns about NSW proved JobKeeper could not be switched off as scheduled on September 27.

“It is a further call to continue JobKeeper in its current form at a minimum for the most affected industries,” Mr Lambert said.

“Any further restrictions in any state will be the straw that broke the camel’s back. If the border between Queensland and NSW closes again, these are all factors that will lead to the tremendous uncertainty and the need for JobKeeper to continue in its current form at least for the most affected industries.”

Most Coalition MPs contacted by The Australian believe the JobKeeper extension will apply to businesses based on their revenue losses rather than singling out sectors or regions.

MPs believe the system will have a tighter eligibility, be at a lower rate, and require businesses to apply for the payment on a monthly basis.

On the first stage of the JobKeeper package, businesses could receive the payment for a full six months if they had a 30 per cent downturn in turnover at any month during the pandemic.

Businesses with a turnover of more than $1bn needed to prove a 50 per cent reduction,

But some MPs are pushing for Treasurer Josh Frydenberg to adopt a sector-by-sector approach.

Liberal senator Andrew Bragg said the government “can’t subsidise the whole private economy”.

“The method I would propose is if you have a sector in distress then they should receive a care package,” Senator Bragg said.

“Now for some sectors a wage subsidy might be the most effective, other sectors might be needing a mix of grants and payments.”

Liberal National MP Llew O’Brien said there should be a select few sectors that can continue to receive the payment, including hospitality and tourism.

“We can’t have a situation where people who are doing well are … getting a payment and they are profiting out of it,” Mr O’Brien said.

Australian Retailers Association chief executive Paul Zahra said his industry believed it was facing a cliff at the end of September and instead wanted to see a slope, with future JobKeeper payments to be tailored and aligned to the pay level of the employee.

“Victoria is the second largest market for national retailers,” Mr Zahra said. “If support is not extended it could see retailers, restaurants and cafes very quickly go into administration. These are family-run companies.”

Mr Frydenberg will outline the next phase of the government’s income support when he delivers his mini budget on July 23.

There appeared to be unanimous agreement within industry that modifications to JobKeeper were required, especially so that casual workers who normally did not earn $1500 a fortnight did not have their salary topped up by taxpayers.

Australian Tourism Industry Council executive director Simon Westaway said it was imperative the $70bn, six-month program was maintained while there were restrictions on the economy and businesses, particularly in Melbourne.