Anthony Albanese (Grayndler, Australian Labor Party, Leader of the House) Share this | Hansard source

I move:

That the Member for New England, Mr Windsor, be appointed to the Standing Committee on Infrastructure, Transport, Regional Development and Local Government as a supplementary member for the Committee’s inquiry into the funding of regional programs.

Yesterday morning the Standing Committee on Infrastructure, Transport, Regional Development and Local Government determined to have an inquiry into regional development—an inquiry into the way the Regional Partnerships program has worked in the past and an inquiry into the future of the program. We think that it is appropriate, given the approach from the member for New England to participate in this inquiry, that another non-government member be appointed to the committee for the duration of this inquiry. The Rudd government has established a new direction for regional development. We have indicated that we will be establishing the Regional and Local Community Infrastructure program to fund local community infrastructure. We are committed to consulting widely in the development of the new program to ensure that the mismanagement of previous programs does not occur. We want to get this right. The committee will obtain advice and hold meetings around the country so that people have an opportunity to go through some of the historical records as well as advance their view on what future structures there should be to ensure that the taxpayer’s dollar is treated as the precious resource it is. The member for New England, whom we do not agree with on a range of issues, is without doubt a man of integrity. There is no doubt that he has made a substantial contribution to regional Australia both in state parliament and now in the federal parliament. We believe that he will make a positive contribution to this inquiry, which will be ably chaired by the member for Ballarat, with the member for Hinkler as deputy chair.

The government has stated that it will not be proceeding with the Regional Partnerships program on the basis that the Australian National Audit Office has indicated that the program had fallen short of an acceptable standard of administration. We have taken appropriate action to look at the way that the program was run. The real story is perhaps even worse than that which the Audit Office outlined. For instance, in the week leading up to the 2007 election being called—which is after the Audit Office inquiry had taken place—some 32 projects were approved, 28 of which were in coalition held electorates. In our view, the Regional Partnerships program was run so badly that it was beyond repair. Infrastructure development not only involves action on larger scale projects like ports and roads that we have provided for with the Building Australia Fund but also depends on smaller projects that improve the quality of life in these local communities. That is why we have asked the House of Representatives committee to inquire into the matter. I got together the Regional Development Australia network executive, along with the Parliamentary Secretary for Regional Development and Northern Australia, the member for Brand, and we had a very good discussion. The network is also undertaking consultations around the country on the way to establish a regional program with integrity and one that will deliver funds based upon needs and objective criteria, not one based upon political criteria.

Recently we saw a number of media reports on further problems with the Regional Partnerships program, in which the member for New England has had a particular interest. For example, $1.1 million has been paid for a Gunnedah ethanol plant over the last four years. We know that the plant does not exist; it was never built. We now see reports where there would appear to be a conflict of interest in the way that the grant was allocated. It has been alleged that the state member for Barwon, Kevin Humphries, who recommended the grant before he was elected, later went into business with the proponent.

I have also seen reports that the proponent, Mr Matthew Kelley, has offered to return the funds to the government. My department has written to Mr Kelley because we believe that is indeed an appropriate course of action. We have told him where the cheque can be sent and we look forward to the return of taxpayer funds. We also look forward to taking whatever action is necessary, whatever action we can, to get a return of funds that have been allocated in a way which is simply inappropriate. Legal advice has been sought on these issues. These sorts of examples need to have a light shone on them so that they never occur again.

We also need to make sure with the new regional and local community infrastructure fund that we establish integrity in the system. I have every confidence that not just the member for Ballarat but also the member for Hinkler will make a very constructive contribution to future programs in regional Australia. I think the member for New England will do that as well.

In conclusion, I seek leave to table the article from the Sydney Morning Herald of 20 April 2008 titled ‘MP’s link to missing $1 million grant’ and the article from the Sun Herald of 27 April titled, ‘Kelley says he’ll refund $1.1 million plant grant’ for the benefit of members in the House.

Leave granted.

I commend the motion to the House and expect that everyone in this House who is concerned about the independent process of these grants would also support the appointment of an Independent member of this parliament to the committee looking at the structure of these grants, as well as looking at recent history and the way that these funds have been administered so that the mistakes of the past will not ever be repeated again.

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