Call for probe into jobs fund

A JOBS fund which routinely ignored department recommendations when handing out $27 million in grants to Tasmanian businesses should be the subject of a thorough inquiry, federal Labor says.

“Administrative shortcomings” in the Regional Jobs and Investment Packages announced in mid-2018 were blasted in an Australian National Audit Office report released on Melbourne Cup Day.

The report found a panel of Coalition government ministers declined grant applications recommended for approval by bureaucrats — and approved many which were not recommended.

The initiative was designed to create jobs in key regional areas, including in Tasmania.

Around $27 million from the $220 million national program was allocated to 49 projects in Tasmania. The marginal seat of Lyons received 53 per cent of the Tasmanian funding, while the safe Labor-held seat of Franklin received 10 per cent. No grants were made in the safe independent-held seat of Clark.

Around 25 per cent of Tasmanian projects recommended for approval by departmental officers were rejected by the ministerial committee.

“Applications were not soundly assessed in accordance with the program guidelines,” the Auditor General’s report said. Details of the terms and conditions of the grants are not publicly available because they have been deemed “commercial- in- confidence” by the Department of Industry, Innovation and Science.

While the report found no evidence of bias in funding, Labor has raised concerns about the division of funds.

Labor’s infrastructure spokeswoman Catherine King has written to the chair of the Joint Committee of Public Accounts and Audit requesting it inquire into the program.

The letter asks the committee to investigate “alarming findings” including conflict of interest management, training of assessors, and “insufficient” record-keeping for late funding applications that were approved.

Ms King said an inquiry by the JCPAA is an important step in examining the maladministration by ministers.

A spokeswoman for Deputy Prime Minister Michael McCormack said the Department of Infrastructure, Transport, Cities and Regional Development had accepted the recommendations of the report and implemented changes following a review in July last year.

“The department will continue to review delivery of all regional programs and implement improvements where and when necessary,” she said.