Victoria's acting premier hasn't ruled out COVID-19 restrictions loosening later this week, despite hospitalisation rates rising and persistent case numbers.
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The state reported 1189 new infections and a further six deaths on Tuesday, marking nine consecutive days of four-figure daily cases.
With more than 11,000 active cases in the community, hospitalisations have hit their highest point in almost a month, growing to 364.
The last time numbers were of a similar level was on November 16, when 394 people were in hospital.
Of those in hospital, 80 patients are actively infected in intensive care and 44 on ventilators, an increase of four from Monday's figures.
The seven-day hospitalisation average is also tracking upward, sitting at 327.
Acting Premier James Merlino said the figures were a key indicator and authorities were monitoring the rise, along with another three confirmed Omicron cases linked to a Dubai to Melbourne flight.
"We're not chasing zero Omicron. Omicron may well replace Delta as the variant that will be out in our community," he told reporters on Tuesday.
"What we are keeping a close eye on is hospitalisations and particularly ICU beds."
Victoria's first pandemic declaration will come into effect just before midnight on Wednesday, when the current state of emergency expires.
When asked whether mandatory check-ins and masks in retail settings could be scrapped under the new framework, Mr Merlino said Health Minister Martin Foley would make a call based on updated health advice.
"I'm not going to foreshadow today what decisions the health minister will make under the new pandemic legislation," he said.
"Later in the week, there will be announcements about what the next stage looks like."
It comes as Victoria has won the race to become home to the nation's first and only mRNA vaccine manufacturing factory, as part of a deal between Moderna and the state and federal governments.
It is expected the facility will produce up to 25 million doses of respiratory vaccines each year from 2024, with the ability to scale up to 100 million doses per year to combat future pandemics.
Some 500 construction jobs and 500 ongoing roles are also forecast to be created as part of the southern hemisphere-first facility.
Mr Merlino said Melbourne was the logical place to set up shop, given the state's medical research and biotechnology industry already employs about 30,000 people.
"This is a massive game changer," he said.
Prime Minister Scott Morrison said the Commonwealth had worked with a number of states on the plan but ultimately could not look past Victoria.
Australia has been reliant on overseas supplies for mRNA vaccines during the pandemic, with AstraZeneca's viral vector jab the only coronavirus immunisation produced on its shores at Melbourne's CSL plant in Broadmeadows.
Monash University researchers this year developed Australia's first mRNA vaccine over a five-month period, with clinical trials set to begin in January.
Australian Associated Press
