Australia stops importation of PNG farm workers

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Last week, Cairns’ Hospital was thrown into a ‘code yellow’ emergency after receiving an influx of COVID infected patients from Papua New Guinea (PNG).

The six PNG patients had flown in to work as seasonal farm labourers and became infected while quarantining.

Over the past month, COVID-19 infections have rocketed in PNG (see below chart), and this has prompted the federal government to ban flights into Australia:

PNG COVID infections are escalating.

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Flights between Port Moresby and Cairns have been suspended and there is now a ban in place on workers flying in and out of Australia.

Australia will also send 8,000 vaccine doses to PNG to assist in its COVID fight.

Australia’s farmers have spent months complaining about labour shortages and demanded easier access to migrants. The banning of seasonal workers from PNG is obviously a move in the opposite direction and will tighten labour supply.

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Thus, expect the horticultural industry to step-up lobbying efforts for government assistance.

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.