PM readies an expanded stimulus for industries most at risk from the coronavirus

Scott Morrison will take an expanded economic rescue package to parliament next week in a bid to inject even more cash into small businesses.

The tourism and hospitality industries along with small businesses will receieve an extra cash injection ­under an expanded economic rescue package. Picture: Getty Images

Scott Morrison will take an ­expanded economic rescue package to parliament next week in a bid to inject even more cash into small businesses, as the tourism, hospitality and services sectors face ­imminent closures and mass job losses following the unprecedented emergency response to COVID-19.

In rolling meetings of the cabinet’s expenditure review committee this week, the Prime Minister, Josh Frydenberg and Finance Minister Mathias Cormann will draw up extra economic measures to support at-risk industries struggling with sharp downturns in overseas and domestic visitors.

With parliament returning next Monday to consider the government’s $17.6bn stimulus package, businesses are calling for more direct cashflow support, loan guarantees and wage subsidies to help stay afloat.

The rescue package, expected to be finalised this week, comes as the national cabinet meets on Tuesday night to determine restrictions on enclosed gatherings and aged-care visitations.

Bans or constraints on the number of patrons at cinemas, bars and clubs would impose significant economic pressure on small businesses across Australia.

Authorities in Italy, France, Spain, New York and Los Angeles have already moved to shut restaurants, bars and clubs in attempts to flatten the curve of new COVID-19 infections.

The Australian understands further government support for businesses — following the scaling up of coronavirus emergency response measures — will also feature in the May 12 budget.

The Treasurer last week told The Australian the tourism and hospitality sectors would be affected as “countries put in place travel restrictions” and businesses limit staff movements.

Confirmed cases of coronavirus across the country spiked to 351 on Monday, with 37 new infections in NSW. The number of COVID-19 cases across the globe now exceeds 153,000, with 5746 deaths, including five in Australia.

Mr Morrison said the national cabinet, which includes state and territory leaders, would consider restricting numbers in enclosed spaces but warned Australians that no single measure would neutralise the threat of the virus.

Non-essential mass gatherings of more than 500 people have ­already been banned, triggering the cancellation of major events, including Anzac Day ceremonies, across Australia.

“(Medical officers will) be providing some advice on aged-care facilities and visitation arrangements there and restricting those, and they will also be providing us with further advice on enclosed gatherings,” Mr Morrison told Sky News.

“These are not absolute measures. You cannot close off every single possible risk when it comes to this. But when you do these on the volume level we’re doing, it lessens the overall level of risk that the community is placed at.

“No one measure is going to be the knockout blow to the coronavirus. That’s just not how this works. All of the measures are relative, and when they work together, it lowers the overall risk.”

Deputy Chief Medical Officer Paul Kelly said the nation’s leading health professionals would consider whether the disease would spread more easily indoors in clubs, pubs and restaurants.

“So (we will be considering) whether there should be some specific information in relation to gatherings in enclosed spaces … a football stadium versus a pub for example,” Dr Kelly said.

“We have picked 500 (for mass gatherings) and feel that’s a reasonable amount. Whether it should be modified for internal events is something that is under consideration.

“Our advice will be going from the Australian Health Protection Committee to the national cabinet. They’ll be making decisions and we have been asked to give frank and fearless medical advice from the beginning, and that’s what we will continue to do.”

Ahead of parliament returning next Monday, contingency plans have been put in place to fast-track the passage of COVID-19 stimulus legislation with as few MPs as possible and restrictions on staff travelling to Canberra.

The public will be barred from watching politicians in the house and Senate chambers, and tougher restrictions will be imposed on who is allowed in the private areas of parliament.

North Queensland LNP senator Susan McDonald on Monday confirmed she had tested positive for coronavirus, becoming the second MP to contract COVID-19 after Home Affairs Minister Peter Dutton was admitted to hospital on Friday.

Tourism Minister Simon Birmingham, who met with tourism operators in Cairns on Monday, said the government’s economic measures wouldn’t be limited to the stimulus package.

“We will work from now through until the federal budget to make sure that not only is that $17.6bn spent and invested wisely to save as many businesses and jobs as possible, but also that we look at what else is going to be necessary in the future to see everyone through what is going to be a long and challenging period,” Senator Birmingham said.

Anthony Albanese accused the government of acting too slowly in response to the crisis.

“We expressed our concern last week that the measures that were announced wouldn’t be enough. And it is extraordinary, however, that before the first stimulus package was actually implemented or even legislated, we have another package apparently on the way,” the Opposition Leader said.

Additional reporting: Richard Ferguson