Wagga Base Hospital is treating two new confirmed COVID-19 cases from outside the region and is working to establish any exposure sites.
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NSW Deputy Premier John Barilaro said investigations were ongoing but the two people were understood to have recently travelled to Wagga from the Wollongong area.
"Interviews are pending but exposure sites in Wagga are expected to be identified," Mr Barilaro's statement said.
The two people were confirmed as positive cases after 8pm on Tuesday.
Murrumbidgee Local Health District (MLHD) stated on Wednesday that "two new confirmed cases of COVID-19 are being cared for at Wagga Base Hospital".
"They will be reported in the NSW Health numbers [on Thursday]," the statement said.
"Both cases are from outside of the Murrumbidgee region. Investigations and contact tracing are ongoing to identify all close and casual contacts and any venues of concern. Exposure sites will announced as soon as they are known."
The MLHD has asked anyone who has even the mildest symptoms is asked to come forward for testing.
The drive-thru COVID Testing Centre is open at the Equex Centre (Copland Street) in Wagga Wagga from 10.00 am - 6.00 pm daily.
Wagga MP Joe McGirr said he was "very concerned" about the two new cases and the potential for lockdown.
"We've got to get out testing numbers up. Our testing numbers are way too low for us to be confident that we do not have COVID in the community," Dr McGirr said.
"With these two visitors coming in from Wollongong and having been out in the community, we need to urgently ramp up our testing numbers, because without that we really don't know what we are dealing with.
"I think we are at risk of having a number of cases and the sooner we know that, the sooner we can control it and prevent us from going back into lockdown."
Wagga mayor Greg Conkey said he hoped the city could avoid being put into lockdown due to the economic damage it would cause.
"I have been saying for months that it's not a matter of if, it's a matter of when [COVID-19] impacts this city," he said.
"Hopefully the impact will be minimal. If we have to go into lockdown it will costs hundreds and hundreds of thousands of dollars and cost people their jobs, and would be devastating for our economy."
In other news:
MLHD has opened walk-in Pfizer vaccinations clinics this week in Griffith and Wagga for anyone aged between 12 and 59 years.
People are asked to bring their Medicare care, photo ID and a facemask. Children should be accompanied by a legal guardian.
Griffith Pfizer Vaccination Clinic is located at the Griffith Base Hospital (via Main Entrance) and is open Monday - Friday 1.00 pm - 4.00 pm.
Wagga Wagga Pfizer Vaccination Clinic located at Yathong Street, Wagga and is open from Monday - Friday 1.00 pm - 7.00 pm.
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