A new report from the Australian National Audit Office (ANAO) has found funding decisions from the Building Better Regions Fund (BBRF) did not properly follow advice from the Department of Infrastructure, Transport, Regional Development, Communications and the Arts.
From the report’s findings, 65% of the infrastructure project stream applications approved for funding were not the “most meritorious” in using the department’s assessment process. Of funds granted, $1.15 billion was spread across five rounds.
The report also found there to be inadequate documentation of reasons for some of the funding decisions, and the ministerial panel increasingly relied on “other factors” to make funding decisions.
“As the program has progressed through the first five rounds, there has been an increasing disconnect between the assessment results against the published merit criteria and the applications approved for funding under the infrastructure projects stream (which comprised the majority of approved projects and funding),” the report stated.
The report noted funding favoured electorates held by The Nationals, which received $459 million (39.9%) of the total funding. The Nationals held 10.6% of the number of seats.
Comparatively, Liberal Party electorates received $430.6 million (37.4%) while holding 40.4% of the number of seats. Australian Labor party electorates received $183.8 million (16%) while holding 45% of the number of seats.
The report said Liberal Party electorates received $73.5 million less and Australian Labor Party electorates received $26.1 million less than if the meritorious application process had been followed.
As a result of the findings of the report, there have been accusations of pork barrelling by the former government.
Infrastructure minister Catherine King put out a statement, adding the government would have “more to say” about the report in months to come.
“Our regions deserve a government that is committed to working with them to harness their opportunities and meet their challenges, and develop a shared vision for their sustainable, prosperous future,” the minister said.
Fiona Nash, a former Nationals senator who was chair for a time on the ministerial panel, accepted the report’s recommendations.
“While the departmental processes for assessing and scoring applications are in my view sound, it must be recognised that the departmental decision-makers in that process are located in the cities.
“They do not have the benefit of an on-the-ground understanding of the regional communities, and their circumstances, where projects are proposed to be located, and the potential impact and benefit of those projects,” Nash said in a statement.
The other chairs of the ministerial panel were: John McVeigh, Michael McCormack, and Barnaby Joyce.
A total of five recommendations were made out of the report — one to Infrastructure and four to the Department of Finance. Infrastructure has agreed to its recommendation, and Finance has noted its four.
The recommendation agreed to by Infrastructure is for the ministerial panel to provide written advice on the merits of proposed grants to all panel members and an improvement in record-keeping.
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