Major corporations and political donors awarded grants under $200m regional jobs program
Major corporations – including in the Manildra Group and Teys Australia group of companies – which have given tens of thousands of dollars each in political donations are among those to have benefited from a $200m regional jobs program.
The regional jobs and investment package was the subject of a scathing Australian National Audit Office report which found substantial administrative shortcomings including ministerial funding decisions that did not always line up with advice provided by bureaucrats.
Ministers declined to fund 28% of grant applications recommended to them by officials, and approved 17% of applications that had not been recommended to them.
In February 2018 Shoalhaven Starches Pty Ltd, in the Manildra Group, received a $2.95m grant towards its $13m Bomaderry export distribution hub project.
The project promises to “install and operate advanced robotics and develop logistics and sorting for flour milling to increase flour packing capacity to 50 tonnes per hour”.
According to its disclosures to the Australian Electoral Commission in the 2017-18 financial year, the Manildra Group gave $227,410 in political donations including $171,350 to the Nationals and $51,310 to Labor.
In March 2018 Teys Australia
Murgon Pty Ltd received $267,406 towards a $567,406 expansion of its beef cattle hide processing facility in Murgon “to enable increased production throughput, resilience in the marketplace, and employment opportunities”.
According to its disclosures to the Queensland Electoral Commission, since 2018 Teys Australia has given $25,930 to the Liberal National Party.
In the same round, Nolan Meats Pty Ltd received $5m towards a $10m meat processing expansion to double production capacity from 550 to 1,100 cattle per day.
“Once completed, this expansion will create 200 direct full time equivalent positions which will generate a $34 million yearly boost to the local economy,” the program description said.
Nolan Meats disclosed a $3,000 donation to the LNP in November 2017.
Guardian Australia is not suggesting that political donations represent a quid pro quo for taxpayer-funded grants.
The program assessed by the ANAO originated from a 2016 election commitment by the then Turnbull government to establish a $200m program to deliver regional jobs and growth, with the expectation of leveraging a further $200m or more in matched funding.
The objective of the initiative was to create jobs in regions in five states – the Bowen Basin, tropical north Queensland, and Wide Bay Burnett in Queensland; the north and south coast of New South Wales; the upper Spencer Gulf in
South Australia; Geelong, the Goulburn Valley, and the Latrobe Valley in Victoria, and regional Tasmania.
The ministerial panel overseeing grants for the first three regions was comprised of Nationals Darren Chester and Michael McCormack and Liberals Michaelia Cash and James McGrath. For the remaining regions, the panel consisted of the LNP’s John McVeigh and National Bridget McKenzie – who replaced Cash.
Labor’s infrastructure spokeswoman, Catherine King, said: “The audit was scathing of the ministerial panel for failing to verify job claims and failing to document why it overturned departmental recommendations.”
“Michael McCormack needs to come clean – what projects were approved but not recommended by the department, and why?”
“The deputy prime minister also needs to tell the Australian people how many new jobs will actually flow from these investments.”
On Friday Guardian Australia reported that Dindarr Pty Ltd received a $1m grant for a ferry and bus project despite not having been in the transport business. The company is currently the target of deregistration by the corporate regulator and is “losing money”, with the director saying the project is unlikely to happen for at least two years.