The inability of a Dubbo business to find "150 staff to start a second shift" is what Member for Parkes Mark Coulton calls the "downside" of JobKeeper.
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Mr Coulton has been talking with business people across his electorate with their feedback prompting a warning to workers who may be living in a "fool's paradise".
The Minister for Regional Health, Regional Communications and Local Government says JobKeeper has been "incredibly effective and popular".
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"Sadly, there has been a downside and I'm hearing anecdotes from lots of places where some businesses are struggling to get workers to come back to work because they are finding they can live on JobKeeper or JobSeeker," he said.
"I would say to those people who are at home on JobKeeper, it's a bit of a fool's paradise if you think that's going to be there forever.
"If the work is offered you should take it. We'll continue as long as we need to but it's not permanent."
Mr Coulton told of the Dubbo business trying to move forward in the COVID-19 pandemic.
"..they need 150 staff to start a second shift, and they are struggling to get people to take it up," he said.
"These are well-paid jobs. Jobs with opportunity for advancement if you stay with the business.
Mr Coulton raised the possibility of "tougher" regulations.
"..if work is offered then it shouldn't be an option to take the higher welfare payments," he said.