Mark Dreyfus (Isaacs, Australian Labor Party, Cabinet Secretary) Share this | Hansard source

I thank the member for Indi for raising the issue of the commission's ability to investigate serious or systemic corruption in relation to discretionary grants programs, commonly referred to as pork-barrelling. As I've said previously, there is a point at which the making of discretionary grants can cross the line into corruption, where public money is being given away for private purposes and that is what are talking about. Can I assure the member for Indi and all of the other members of the crossbench who have spoken in support of her amendment that the bill would enable the commission to investigate serious or systemic corrupt conduct in relation to a discretionary grants program where that conduct may involve a breach of public trust, or dishonest or partial conduct. It is simply not correct, as the member for Warringah has just attempted to suggest, that it is excluded from the work of the commission. It is included in the work of the commission. These are very well-established concepts. They have been considered relatively recently by the New South Wales Independent Commission Against Corruption in its Operation Jersey. If there are circumstances where grants are allocated dishonestly or for an improper purpose, the commission will be able to investigate if it is of the opinion that this could involve serious or systemic corruption.

I now turn to the other matter that's raised by this group of amendments, which is the question of third parties and external fraud. The commission will be a specialist body focused on preventing, detecting and investigating corruption involving public officials. The commissioner will be able to fully investigate serious or systemic corrupt conduct and transactions between public officials and third parties, as well as attempts by third parties to corrupt public officials. This includes the conduct referred to in the member for Indi's proposed amendment, where there is some involvement of a public official. Extending the commission's jurisdiction beyond matters involving corruption of a public official, to include external frauds against the Commonwealth that do not involve a public official, would divert the commission from its core purpose. The Australian Federal Police, the Commonwealth Director of Public Prosecutions and other agencies are effectively dealing with these matters—sadly, by the hundreds every year. The Australian Federal Police, in particular, has specialist fraud investigating teams. It works with the Australian Taxation Office on these matters. They are specialist agencies, they are dealing effectively with these matters and it's not necessary to amend the bill to expressly cover conduct of this kind. The government does not support this amendment.

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