Parliamentary probe into $560m Labor grants scheme begins

Summarised from 2 outlets · Updated 20 Oct, 20:32 · Archive

A parliamentary inquiry has begun into a $560 million invite-only grants program that funded Labor election promises.

A parliamentary inquiry has begun examining a $560 million invite-only grants program that funded Labor election promises around Australia. The Major and Local Community Infrastructure Program is the subject of a two-day senate review beginning Wednesday, led by Greens deputy leader Steph Hodgins-May.

The Centre for Public Integrity raised concerns about the scheme in September, reporting that funding was tilted towards marginal seats and Labor-held seats. Constitutional lawyer Anne Twomey has characterised the spending as 'grey corruption'. The government defends the scheme as an above-board way to deliver on its promises, but good governance groups question its merit.

Key ministers and staffers will not appear before the committee, hampering the inquiry's ability to establish how decisions were made. The infrastructure department submitted that it had 'no role identifying, selecting or recommending' projects. Senator Hodgins-May said this raised 'the obvious question: who made these decisions?' She pointed to 'an extraordinary level of ministerial and party discretion to hand out millions of dollars through a closed-off and shady grants process'. Inner West Council Mayor Darcy Byrne will testify on Wednesday; the Labor-led council backed the most contentious project, a $6 million grant to Marrickville Golf Club in Mr Albanese's electorate.

How it is being reported

• 'Shady' Labor election grants under inquiry spotlightThe central question for a probe into a closed-shop grants round is who made the calls on $560 million of taxpayer funding for Labor election promises.Perth Now · 20 Oct, 20:02
• 'Shady' Labor election grants under inquiry spotlightThe central question for a probe into a closed-shop grants round is who made the calls on $560 million of taxpayer funding for Labor election promises.The West Australian · 20 Oct, 20:02

In this story: Anthony Albanese · Catherine King · Steph Hodgins-May · Anne Twomey · Darcy Byrne · Marrickville Golf Club · Inner West Council · Centre for Public Integrity

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