A FLAW in the Federal Government’s $1.6 billion package to provide free childcare services during the coronavirus pandemic could force the closure of council-run childcare services, forcing tens of thousands of families to scramble for new care arrangements, the United Services Union has warned.

While for-profit centres are eligible for the $1,500 per fortnight JobKeeper payment for each staff member, in addition to the new childcare funding, local government is not eligible for that money, leaving a massive budget hole.

Without access to the JobKeeper payment, the funding package fails to cover the costs of keeping childcare centres open, forcing councils to either pump millions of dollars from ratepayers into the services or close their doors.

The USU, which represents local government employees in NSW, is urging the Federal Government to immediately address the design flaw by ensuring council’s can access the funding needed to keep childcare centres operating during the COVID-19 crisis.

“There is no point announcing a $1.6 billion childcare package that promises essential workers that childcare services will be free if a major flaw in the funding model means centres in communities across the country will still be forced to close their doors,” USU general secretary Graeme Kelly said.

“The way this funding model works is by combining with the JobKeeper subsidy, which is being paid to commercial childcare operators, to cover the full costs of keeping centres open.

“But if the Federal Government fails to provide that $1,500 a fortnight payment to cover staff wages at council-run centres, there simply won’t be enough money to keep the services open, forcing parents to scramble to move their children elsewhere.

“Local Government is the largest provider of early childhood education and childcare services in NSW, caring for tens of thousands of children, yet all these services remain at imminent threat of closure.”

Mr Kelly said if the Federal Government failed to act then the NSW Government should intervene to provide the funding needed.

“The local government sector has been left out of much of the Federal Government’s stimulus funding, putting the viability of many community services at risk and threatening thousands of jobs,” he said.

“If the Federal Government continues to exclude the sector from key stimulus measures, in particular the $130 billion JobKeeper program, the NSW Government must act to ensure its ongoing viability.”

ends

THREE container ships that departed foreign ports in recent days are due to dock in Darwin this week, despite failing to undertake the 14 day coronavirus quarantine period, posing a clear health risk to workers and the community.

Singapore-flagged Kota Harum, which departed Hong Kong on March 25, will dock in Darwin tomorrow morning (April 3) after just eight days at sea. The Cyprus-flagged Antung is also due to arrive on Friday after visiting Indonesia on March 28 and East Timor on April 1. The Liberia-flagged ANL Dili Trader, which departed Singapore on March 25, is due to dock on Saturday.

These arrivals, in the most extreme case just two days after departing a foreign port, follow the arrival of the Chinese container vessel Xin Da Lian in Melbourne. Wharfies were stood down after refusing to unload that ship because it had failed to complete a 14-day quarantine period after leaving Taiwan on March 19.

Commercial vessels continue to dock in Australian ports without crew members undertaking 14 days isolation — as is required by all other travellers — despite clear COVID-19 guidelines to the maritime industry from the Health Department that all vessels should undertake it if arriving from another country.

The Maritime Union of Australia said wharfies understood their important role during the current pandemic, but refused to stand by while foreign vessels were allowed to breach essential measures aimed at preventing the spread of COVID-19 in the community.

“We already know that a failure to enforce biosecurity measures on cruise ships has led to the largest cluster of COVID-19 cases in Australia, causing several deaths and hundreds of illnesses,” MUA national secretary Paddy Crumlin said.

“The arrival of these three vessels — in the most extreme case less than two days after being in a foreign port — threatens to repeat that debacle by exposing local workers, and through them the broader community, to another outbreak.

“It is outrageous that at a time when people are being told to stay in their homes, to not even take their kids to the park, that the Australian Government is continuing to allow foreign vessels to unload in our ports without undertaking a 14 day quarantine period.

“Wharfies are simply demanding that the Health Department’s guidelines be enforced to prevent the spread of coronavirus on the waterfront, which means ensuring all vessels undertake a 14 day isolation period after leaving their last foreign port before docking in Australia.

“If there is a COVID-19 outbreak on the waterfront, it could have devastating impacts, not only to the health of workers, but on the supply chains that provide 98 per cent of Australia’s imports, including medical supplies, food, and household goods.

“That is why the union developed a maritime industry framework based on expert health advice and international best practice, but some stevedores are refusing to meet or implement those measures, instead resorting to intimidation and threats to force unsafe practices on workers.”

MUA Northern Territory deputy branch secretary, and national Indigenous officer, Thomas Mayor said the failure to quarantine vessels arriving in Darwin and other ports close to Indigenous communities could have devastating consequences.

“Remote Indigenous communities are particularly vulnerable, given the large numbers of people with chronic health conditions, which is why the Northern Territory cannot relax strict measures to prevent an outbreak of COVID-19 at the port,” Mr Mayor said.

“The arrival of these three vessels at Darwin Port, with no quarantine measures, threatens to spread this deadly virus into our community.

“The Australian and Territory Governments should be doing everything possible to prevent the foreseeable risk of coronavirus arriving on commercial vessels, including through the enforcement of strict 14-day quarantine periods, and proactive testing of crew members on international vessels before work commences on them.

“This should be coupled with measures on the wharves that protect local workers, including physical distancing measures, strong hygiene, cleaning, and appropriate personal protective equipment.”

More information:

Health Department COVID-19 guidelines for the marine industry: https://www.mua.org.au/sites/mua.org.au/files/coronavirus-covid-19-information-for-the-marine-industry_1.pdf

COVID-19 Maritime Industry Framework: https://www.mua.org.au/news/covid-19-maritime-industry-framework

ends

THE Maritime Union of Australia is urging the Federal Government to urgently repatriate all crew members on board foreign cruise ships, other than those directly responsible for marine operations, to address the growing humanitarian crisis.

With reports that up to 11,000 foreign workers remain on board 11 foreign cruise ships in Australian waters, the union said it was alarmed but unsurprised by the ongoing failure of the industry to help workers return to their home countries.

MUA national secretary and International Transport Workers’ Federation president Paddy Crumlin said the current crisis was the direct result of an international cruise ship industry built on the exploitation of international workers, with vessels registered in tax havens, sailing under flags of convenience, and utilising secretive ownership structures.

“The plight of the thousands of crew members on board foreign cruise ships anchored in Australian waters is an emerging humanitarian crisis that requires immediate government action,” Mr Crumlin said.

“The Australian Government must urgently act to allow the safe repatriation of all crew members not essential for marine operation to their home countries.

“The crew of these ships must be tested for COVID-19, and the ships sterilised under the highest Australian standards, with crew members then allowed to disembark through Australian ports and flown back to their home countries at the expense of their employers.

“All relocation, travel, and medical expenses must be covered by the international cruise companies like P&O, Carnival, and Royal Carribean.

“Not a single cent should be paid by Australian taxpayers to support or bail out these international companies that have spent years using flags of convenience and opaque ownership structures to avoid paying local taxes and exploit workers.”

ITF Australia coordinator Dean Summers said it should now be abundantly clear to all Australians the threat posed by flag of convenience shipping to public health, the economy, environment and national security.

“The current Federal Government’s maritime policies have encouraged the use of flag of convenience vessels in both domestic shipping between states and territories, along with the cruise ship industry,” Mr Summers said.

“These ships have no connection to Australia, other than sourcing huge profits from our community for faceless multinational corporations, while their home ports are in the Caribbean or West Africa.

“At a time when the COVID-19 pandemic is making our country’s supply chains extremely vulnerable, our community is at the mercy of cheap flag of convenience ships registered in countries including Panama, the Bahamas and Liberia to deliver essential food, fuel, and medical supplies.

“It should be abundantly clear to all Australians that flag of convenience shipping is responsible for serious threats to the nation’s health, economy, environment, and national security.”

Mr Crumlin commended Australian-based cruise ship operators like Queensland-based Coral Cruises and West Australian-based True North, saying both had rejected the policies of the former Abbott Government which had encouraged them to abandon Australian registration for their vessels, despite only operating in Australia.

“These cruise ship operators which have chosen to register their vessels in Australia, pay tax here, and employ local workers should be commended,” he said.

“As we start to imagine a future beyond the COVID-19 pandemic, we are urging the Federal Government to ensure the use of ships whose registration has a transparent link to the country of beneficial ownership.”

The MUA is urging the Federal Government to undertake a number of actions in response to the cruise ship crisis, including:

1. All crew, other than those directly responsible for marine operation, on board foreign cruise ships must be repatriated home through Australian ports and airports at the expense of their employers. These ships must be brought alongside crew tested and ships sterilised under the highest Australian standards;
2. That no taxpayer money or in kind support be given to this industry in any form other than to Australian registered and crewed vessels, where needed;
3. The development of a policy to rebuild an Australian merchant fleet under an Australian flag to protect the interests of Australian people; 
4. The development of a policy to further build an Australian cruise ship industry, employing Australian workers and on ships registered in Australia; and
5. That no cabotage exemptions be given to international flag of convenience cruise vessels working around the Australian domestic cruise ship market.

ends

PROFESSOR Janek Ratnatunga, CEO of the Institute of Certified Management Accountants (ICMA), stated in a paper published on March 31 titled The Financial Modelling Wars: COVID -19 vs. The Economy, that trying to model economic impacts of this global pandemic, based on the experience gained from past virus outbreaks, is fruitless; given the significant errors in the assumptions, and the resultant predictions made in extremely recent econometric models.

“Even though the government has not released the pandemic modelling the Australian Health Protection Committee has used; if the model used in the UK is applicable here, then the extreme measures of social isolation, as those being implemented in Australia, are still inadequate to prevent the health system from being overwhelmed at the ‘peak’ of the epidemic," Prof. Ratnatunga said.

Prof. Ratnatunga’s financial modelling shows that Australia would need a 900 percent increase in ICU beds for two months at a cost of $12 billion. This means from 2,000 beds nationally to 20,000. He said such a boost would cost the government at most only $12 billion.  

Given that the Australian Government is spending $130 billion to keep the economy in ‘hibernation’ for six months Prof. Ratnatunga believes that this level of expenditure will be comparatively miniscule; especially if the private hospitals and hotels are ‘commandeered’ into the war effort.

“Today’s (April 2) announcement by Premier Daniel Andrews to double Victoria’s ICU Beds and open another 4,000 does not go far enough. Even with a 900 percent boost, it would still mean a significant number of infections, and a dramatic rise in COVID-19 related and non-COVID19 related deaths."

In overwhelmed healthcare systems, lifesaving treatments such as mechanical ventilation have to be rationed by medical professionals, and only offered to those with maximum chance of survival, while others can only receive supportive or palliative care.

Prof. Ratnatunga said, “To prevent such battlefield decisions being made by medical professionals in isolation, governments could reduce the burden of rapid end-of-life decision making required by frontline healthcare workers by offering financial support for well people to remain home, or unwell patients to remain in total isolation at home or other external lodgings."

He also said, in this ‘war’ situation, governments should consider raising awareness about Advanced Care Directives and that broadening access to Voluntary Assisted Dying legislation can also be explored on a temporary basis.

The silver-lining in his paper is that by boosting the number of ICU beds, and offering financial incentives home stay/isolation during the ‘peak’ two months, will enable the Australian economy to come out of hibernation after only three months, saving the government at least $65 billion in worker support costs.

Prof. Ratnatunga concluded that in the longer-term, approaches such as those adopted by the governments in Taiwan, South Korea and Singapore – where the economy is kept open, subject to stringent safety rules, and combined with extensive testing, contact tracing and detailed people tracking – may be the most viable way forward, though challenges may arise in liberal, Western societies.

About Prof. Ratnatunga
Prof. Janek Ratnatunga is the CEO of the Institute of Certified Management Accountants, Australia. He has held senior appointments at the University of South Australia, Monash University, University of Melbourne, and the Australian National University in Australia; and the Universities of Washington, Richmond and Rhode Island in the US. Prior to his academic career he worked as a chartered accountant with KPMG. He has also been a consultant to many large Australian and international companies and to the World Bank.

ends

THE Joint Select Committee on Implementation of the National Redress Scheme will continue with its scheduled public hearings scheduled for Monday 6 April and Wednesday 15 April via teleconference.

The programs for these public hearings will be available on the Committee’s website prior to each hearing.

The full proceedings of these hearings will be broadcast on the Parliament House website.  Anyone interesting in listening can do so via www.aph.gov.au/live.

Date: Monday 6 April 2020
Time: 12pm to 4.15pm (AEST)
Location: via teleconference

Date: Wednesday 15 April 2020
Time: TBC
Location: via teleconference

Interim Report

The Committee intends to produce an interim report on or by 30 April 2020. This report will reflect the evidence received so far by the Committee. It is the Committee’s intention that the report will inform the legislated second anniversary review of the National Redress Scheme which is to commence after 30 June 2020.

The Committee is still accepting submissions and these can be made via the Committee’s website.

ends

THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell said she was disappointed by reports of big businesses using COVID-19 as an excuse to delay payments to their small business suppliers.

Echoing the Minister for Small and Family Business, Senator Michaelia Cash, Ms Carnell said it was vital large businesses paid their small business suppliers on time, for the sake of the small business as well as the national economy.

“Now is the time for big businesses to do the right thing and be a part of the solution in this very difficult period,” Ms Carnell said.

“Cash flow is always king for small businesses and never more so than now, particularly for small businesses struggling with the ripple-effects of coronavirus.

“That’s why it’s so important for big businesses to step up and pay on time or reduce payment times.

 “We know that by paying small businesses on time, the whole economy benefits.

“Both our Payment Times Inquiry and our Insolvency Practices Inquiry show that cash flow is the leading cause of insolvency.

“It’s been so encouraging to see some big Australian businesses such as Telstra, BHP, Rio Tinto and more recently Woolworths, commit to faster payment times and there’s no reason why others can’t adopt the same practices.

“Any small business experiencing issues with payment times are encouraged to contact my office for assistance.”

www.asbfeo.gov.au

ends

WHARFIES have been stood down after refusing to unload a container vessel at the DP World terminal in Melbourne last night on safety grounds, identifying it as a risk to workers and the community.

The vessel docked in breach of the Federal Government’s 14-day coronavirus quarantine period.

The Maritime Union of Australia (MUA) said wharfies understood their important role during the current crisis, but allowing the container vessel Xin Da Lian to breach the coronavirus quarantine period was simply too great a risk.

The union is also calling for a suite of measures to be cooperatively implemented to protect workers and the community and to keep the supply chains operating.

MUA assistant national secretary Warren Smith said, “The largest cluster of COVID-19 cases in Australia — which has already claimed several lives and caused hundreds of illnesses — was the result of inadequate measures put in place for the arrival of ships. What’s the difference with this ship?

“Wharfies don’t want to see a repeat of that blunder on the waterfront, but we still see ships allowed to dock inside of quarantine periods in breach of Australian Government Department of Health guidelines.

“An outbreak of COVID-19 on the waterfront would have a devastating impact on Australia’s supply chain given 98 percent of imports arrive by sea, disrupting the waterfront and stopping vital medical supplies, food, and household goods.

“It is vital we do everything possible to protect workers, including testing, physical distancing measures on the job, strong hygiene, cleaning, PPE and every other level of support available.

“It is irresponsible not to take the strongest measures to protect the workforce which is providing basic needs for the community.”

Mr Smith said the union had been working with employers to put in place a framework based on current health advice to protect workers and ensure the resilience of maritime supply chains.

“The employers as an industry have refused to engage with the union, instead going it alone and looking to opportunistically enact essential services legislation,” Mr Smith said.

“The MUA has been demanding improvements to biosecurity measures since January, and we will continue to fight for strict enforcement of quarantine periods, more proactive biosecurity measures, and testing for workers and crew of international vessels arriving in Australian ports and support for sick crew members.”

Department of Health COVID-19 information for the marine industry: https://www.mua.org.au/sites/mua.org.au/files/coronavirus-covid-19-information-for-the-marine-industry_1.pdf 

ends

A NATIONAL advertising campaign has been launched to promote social distancing and strict hygiene on the nation’s building sites.

Denita Wawn, CEO of Master Builders Australia said the campaign would run for the next four weeks and was targeted to everyone working in the building and construction sector because everyone has a responsibility to ensure that social distancing and good hygiene are being practiced.

“Business owners, employers, construction workers, subcontractors, site managers – everyone must be accountable for social distancing and strict hygiene not only on building sites but also off site when on breaks and before and after shifts,” Ms Wawn said.

“As an essential industry it’s vital to the community and the economy that in this extraordinarily difficult time we can continue building and construction work to provide the livelihoods of 1 in 10 Australians and to support the viability of nearly 400,000 small businesses.

“It’s important that the health and wellbeing of everyone in our industry and community remains our top priority which is why the industry is continuing to embed social distancing and strict hygiene practices on site. It’s also why we have joined forces with the CFMEU and the AWU to promote an even stronger safety culture as our industry and our community faces the Covid-19 crisis,” Ms Wawn said.

“However, we do recognise the substantial cultural change that we are asking everyone in our industry to make. Everyone including workers, subcontractors and management are used to completing building projects as efficiently as possible.

"Social distancing is slowing work down, but slower work is better than no work and that is why we are asking everyone in our industry to step up and be accountable for doing the right thing to keep each other and the community safe,” she said.

“There are 1.2 million people and nearly 400,000 small businesses in communities around Australia that go to work every day in our industry which provides the most full time jobs and is made up of the most SMEs than any other sector in the economy. That is why we have launched this campaign,” Ms Wawn said.

ends