Victorian Premier Daniel Andrews has called for NSW to implement a ring of steel around Sydney.
He said the whole country risks having to be locked down if the NSW situation is not handled properly.
"I want to make this point though, if there is a national emergency in Sydney, and I'm not doubting that for a moment, there is national responsibility that Sydneysiders are locked into Sydney," he said.
"We need a ring of steel around Sydney so that this virus is not spreading into other parts of our nation."
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Mr Andrews said NSW had a very significant challenge, with many cases and many people in the community while infectious.
"That trend is not what you want to see," he said.
Mr Andrews said a total of 147 cases had been recorded in Victoria the last 11 days.
Seven people are in hospital, one of them is from hotel quarantine.
It comes as Victoria recorded 14 locally-acquired cases of COVID-19. Of the 14 new cases 10 were isolating for their entire infectious period. Three were in the community for a day. One is still being investigated.
Mr Andrews said the low number of infectious cases in the community was a triumph of the public health team and those in isolation.
There were 14,302 vaccines administered yesterday.
Mr Andrews said it was very difficult to predict where the state would be come the end of lockdown.
"I would say the trend is with us, the results are positive," he said.
Mr Andrews said the decision would not be made until they had all the information next week but reiterated the trend was positive.
Also on Friday, Police Commissioner Shane Patton revealed an Echuca publican had been arrested and fined nearly $22,000 for openly flouting health directions.
Trevor Andrews of the Pastoral Hotel Echuca has been opening to patrons for three days, serving meals and drinks in defiance of the state's fifth lockdown.
"We're taking it very seriously because he has just been deliberately and blatantly breaching the CHO (Chief Health Officer) directions," Mr Patton told Melbourne radio 3AW.
"He's copped already two lots of fines totalling nearly $22,000 for himself. He's still got other charges now pending before the court for that third breach. Common sense has not prevailed."
Meanwhile, 41 workers at a Melbourne hospital have been temporarily stood down after a fellow staffer worked a shift while infectious.
The staffer worked one shift sterilising instruments at Casey Hospital during their infectious period, but wore PPE and did not have any contact with patients.
Another exposure site, Prahran Market, has reopened after a COVID-19 positive shopper spent almost 90 minutes there on Saturday.
The entire market was listed as a tier-one site, with about 900 people who visited around the same time period required to get tested and self-isolate for 14 days.
Global construction giant Multiplex, meanwhile, has been selected to build a 1000-bed quarantine centre in Mickleham.
Federal Finance Minister Simon Birmingham said work on the purpose-built quarantine facility would start in early August.
The Victorian government-run facility on Commonwealth-owned land is expected to open by the end of the year when the first 500 beds are available.
Victorians affected by the extended lockdown can now claim weekly disaster payments up to $600 from the federal government.
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