Mr Tony Burke (Watson, Australian Labor Party, Manager of Opposition Business (House)) Share this | Link to this | Hansard source

My question is to the Prime Minister. Yesterday the environment minister said there was extensive due diligence before the Prime Minister offered a small private foundation almost half a billion dollars in taxpayers' money in a closed-door meeting on 9 April. Today the foundation's CEO explained that no-one in the foundation was contacted and she wasn't even aware there was a due diligence process underway. Could the Prime Minister now give us three minutes detailing the extensive due diligence that his minister referred to?

Josh Frydenberg (Kooyong, Liberal Party, Minister for the Environment and Energy) Share this | Link to this | Hansard source

It might help the House to run through a timeline, because the decision to make this funding available was the result of a considered process. Last May, in 2017—

Opposition Members:

Opposition members interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The minister will pause for a second. Members on my left, I'm trying to hear the answer. The minister has the call.

Josh Frydenberg (Kooyong, Liberal Party, Minister for the Environment and Energy) Share this | Link to this | Hansard source

there was an interdepartmental taskforce led by my department to deal with the challenges facing the reef. This led to a MYEFO announcement of $57 million. I then took two submissions through the ERC process in March, which included seeking further funding for water quality, tackling the crown-of-thorns starfish, reef science, Indigenous engagement and GBRMPA on-water management program and a proposal to establish a partnership with a non-government organisation, which was the Great Barrier Reef Foundation. This was based on three things: the Great Barrier Reef Foundation's proven track record in leveraging philanthropic support as Australia's largest reef-dedicated charity; the foundation's longstanding, extensive experience working with my department and other key stakeholders for more than a decade; and the first phase of due diligence by my department, which looked at its governance, structure, constitution, project management, fundraising history, capacity for growth, board composition and scientific expertise.

Following ERC agreement, an interdepartmental committee was established to progress this proposal, and I was given authority to approach the foundation, which occurred on 9 April, to determine whether they were interested in entering into a partnership for the benefit of the reef—

Ms Catherine King interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Ballarat is warned.

Josh Frydenberg (Kooyong, Liberal Party, Minister for the Environment and Energy) Share this | Link to this | Hansard source

subject to the successful negotiation of a partnership agreement and final phase of due diligence. Over the next two weeks, the department worked with the foundation to develop the fundamental principles of the partnership, which included governance, decision-making, risk mapping, reporting, financial management and other things. I formally wrote on 22 April to the foundation chair outlining these collaboration principles, making it clear that any Australian government funds were dependent on negotiating and executing a new grant agreement. The foundation board agreed to these principles in a letter back to me on 26 April.

On 29 April, the government announced our funding commitment and it was included in the budget on 8 May. On 24 May, consistent with the government's grant guidelines, I approved the partnership guidelines, outlining the necessary requirements to be included in the foundation's application, which were published on my website. On 29 May, the foundation formalised their proposal.

On 20 June, under section 71 of the Public Governance, Performance and Accountability Act, I approved the grant to the foundation based on a recommendation from my department and the second state of due diligence, which also included work by the Australian Government Solicitor. My department concluded that this grant would meet the government's policy objective to protect and manage the Great Barrier Reef, represent value for money and is consistent with the provisions of the governance and accountability act.