Cory Bernardi (SA, Liberal Party, Shadow Parliamentary Secretary for Families and Community Services) Share this | Link to this | Hansard source

Yesterday I sought leave to take note of documents tabled on 23 June 2008 by Senator Faulkner relating to sports grants and I was told that leave would be granted today. Therefore, I again seek leave to move to take note of the document.

Leave granted.

I move:

That the Senate take note of the document.

Often in politics, as in many other fields, the original offence is not a problem but the cover-up that follows the offence destroys careers. Accordingly, we could probably forgive or excuse or understand the massive pork-barrelling that was advanced by this government before the election; the duplicity, the culture of deceit, the argument that ‘we are fiscally conservative and we will not buy this election’. But they did, and it has clearly undermined the reputation of Mr Tanner, Mr Rudd and the machine men of the Labor Party. The problem is that there is an innocent victim in this, and it threatens to destroy her career because there is a cover-up of absolutely massive proportions.

The Minister for Sport boasted on television about 100 projects that had been committed to by the Rudd Labor government during the election campaign. Further information suggested there was over $100 million worth of pork-barrelling rolled out by the Rudd government, in opposition, for sports and community grants. These projects may indeed be worthwhile. Some of them may indeed pass the ‘prince of pork’ test. But I suspect that many of them will not. The Minister for Sport was asked to deliver a list of these projects through the Senate. While she showed enormous contempt for the Senate, as did whoever in the Labor leadership was delivering them up here, she was very proud to tell a House of Representatives committee last week that she had delivered on all the election commitments in this area.

A list of election commitments cannot be that hard to provide, even for the most inexperienced minister or member of parliament. The Senate asked for the documents to be laid on the table. What was produced was not 100 projects, not an additional 30 projects, but a total of 35 projects which included the original 15 that had been provided. This is absolute contempt of this place by not only the Labor leadership here but also the minister herself. It has undermined the standing of the minister, and some of the Labor leadership here, I have to tell you. But the buck has to stop somewhere and, unfortunately, in this case, it doesn’t stop with Mr Rudd, no matter how much he claims that it should; it stops with Minister Ellis. The cover-up is an absolute scandal.

Let us look at the list for a moment and examine what is missing. There are a whole lot of things missing from the list, but I am going to create the Senate version of The Rich List TV show and we will just deal with, say, a top eight today. Let us have a look at the seat of Makin. Tony Zappia, the new member for Makin, is proudly boasting about the pork barrel grants that have been issued there: $200,000 for the Para Hills Soccer Club, $50,000 for the Ingle Farm Soccer Club, $50,000 for the Golden Grove baseball club. Were any of these on Minister Ellis’s election commitment list? The answer is no. What about the $1 million for the North East Hockey Club, the $875,000 for the Hope Valley community centre or the $500,000 for the Tea Tree Gully football club? Were any of these on the list that Minister Ellis provided? The answer is no. But what about the $160,000 commitment to the Traralgon West sports complex? The minister herself reannounced this project on the 20th of this month. On the 23rd of this month, when the documents were tabled, do you think that was on the list? The answer is no, it was not on the list. None of these things were on the list—and the list of what was not on the list is enormous.

Let me turn my mind to one other project. What about the Penrith Valley sports hub—do you think that was on the list? Yes, it was. Finally, something is on the list, and it was on the list to the tune of $250,000 in grants. There is nothing wrong with that, except for the fact that the $250,000 worth of grants to the Penrith Valley sports hub is listed in the budget papers as a $5 million grant. There is a $4.7 million black hole: a cover-up of monumental proportions. It is a cover-up that is caused by incompetence, incapacity or instruction. Any one of those three means that Minister Ellis needs to get her whiteboard in order. Need I remind her of what happens if your whiteboard is not in order? Her predecessor Ros Kelly lost her job over sports rorts No.1. No-one is blaming Minister Ellis for announcing these grants because she inherited the portfolio afterwards. But now we have got sports rorts 2, and that means that Minister Ellis is going to wear it. She has been asked to become a human shield for the fragile but gigantic ego of the ‘prince of pork’ himself, the Prime Minister. The challenge now is for Minister Ellis to wheel out the whiteboard—

Jan McLucas (Queensland, Australian Labor Party, Parliamentary Secretary to the Minister for Health and Ageing) Share this | Link to this | Hansard source

I rise on a point of order. I request that the spokesperson withdraw that comment. I do not think it is appropriate for you to be using language like that in this place. I allowed it when you spoke in the appropriations, but I think that you are just overdoing it now.

Cory Bernardi (SA, Liberal Party, Shadow Parliamentary Secretary for Families and Community Services) Share this | Link to this | Hansard source

Madam Acting Deputy President, that term has been used repeatedly in this chamber. If it is unparliamentary and I am asked to withdraw it, I will.

Carol Brown (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

I would ask you to withdraw it.

Cory Bernardi (SA, Liberal Party, Shadow Parliamentary Secretary for Families and Community Services) Share this | Link to this | Hansard source

I withdraw it. But the challenge now is for Minister Ellis to wheel out the whiteboard to save her own bacon, or she will be remembered as the queen of cover-ups and her legacy will be sport rorts 2. There is a great deal more to go in this saga, let me assure you of that. It is time for the government to come clean and put all of their lists on the table. To do anything else will prolong this cover-up, but it will not prolong or sustain the Rudd Labor government.

Rod Kemp (Victoria, Liberal Party) Share this | Link to this | Hansard source

I rise to speak on the motion that was moved by Senator Bernardi. This is an extraordinary story, I have to say. There is an issue that has emerged. Prior to the election—in fact, for the 12 to 18 months prior to the election—Lindsay Tanner and Mr Albanese spent a great deal of time criticising the Howard government for our pre-election commitments, and some very unkind comments were made. What we did not actually know at that time was that, while Messrs Tanner and Albanese were attacking the Howard government on our pre-election commitments, they were planning the largest pork barrel in Australian history. What Senator Bernardi has indicated is that already we have found some 116 sporting grants to sporting bodies that were made in the run-up to the last election, which are valued at over $100 million.

Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

How much?

Rod Kemp (Victoria, Liberal Party) Share this | Link to this | Hansard source

One hundred million dollars. I have a list here which I think establishes the point I have made. I seek leave to have this incorporated in Hansard. I have shown the list to the Labor Party.

Dana Wortley (SA, Australian Labor Party) Share this | Link to this | Hansard source

We have not had the opportunity to see it.

Leave not granted.

Rod Kemp (Victoria, Liberal Party) Share this | Link to this | Hansard source

This is again totally in line with the policy of trying to hide these grants.

Jan McLucas (Queensland, Australian Labor Party, Parliamentary Secretary to the Minister for Health and Ageing) Share this | Link to this | Hansard source

Senator McLucas interjecting—

Rod Kemp (Victoria, Liberal Party) Share this | Link to this | Hansard source

Senator, a list of the grants was shown to the Labor Party. I asked whether this list could be incorporated in Hansard. I made it clear that the list was prepared by my office. Once again, the Labor Party has refused to allow this information to be put on the public record. As I said, while the Howard government were being attacked for what was allegedly pork-barrelling, we did not know that the Labor Party were preparing the largest pork barrel in Australian history. I made the point that all we are doing is speaking about sporting grants. We are not speaking about the vast range of other grants that the Labor Party made in the course of the election. I think Minister Ellis has been put in a very difficult position. I believe her to be a conscientious minister, a minister who is seeking to work hard on behalf of the sporting community, and I make no attack on Minister Ellis in that regard. Minister Ellis has been asked by the machine men, by people in the PM’s office and presumably by people in Tanner’s office to attempt to cover up the vast range of pork-barrelling which occurred in the sporting area.

The Labor Party has a rather unfortunate history in this regard. Remember that then minister for sport, Ros Kelly, was sacked over what is now termed sports rorts 1. In its final phase, it totalled, I think, about $30 million. Contrast the $30 million that Ros Kelly was sacked for with this $100 million plus—and growing almost daily as we get new figures in to show the large scale of grants. It is not for me really to advise Minister Ellis, but my view would be this: Tanner and Albanese prepared a major pork-barrelling exercise. They should wear the odium of it. I do not think Minister Ellis should wear the odium of it. I do not think that the advisers to Minister Ellis are aware of just what powers this Senate has. I suspect they are expert in the ways of the other place—possibly some of them have come from state arenas—but they are now dealing with the Senate. The Senate has very extensive powers to obtain information and extensive powers to make sure that this is debated. Our procedures would allow this to be debated virtually every day in this chamber as the information came to hand.

I shall be leaving the Senate, so I shall not be leading that debate or taking part, but I suspect I am not letting any secrets out of the bag when I say that Senator Bernardi will be very active over the break. Senator Bernardi will be contacting a lot of organisations over the break. I can perhaps share with the Senate some of the methods that he will be using. He will be speaking to organisations close to those bodies which have received grants but did not receive grants themselves. I suspect that, over the next three months, a great deal more information will be obtained. I just want to state again what I believe is the best advice for Minister Ellis: simply table the list of grants which she has been asked to administer.

We are not interested, really, in the argument that these grants are going to be administered correctly, because we believe they will be. Any government would be foolish not to make sure that the grants were administered in an effective way. The big issue is this, and I think people have to understand it: a massive degree of pork-barrelling has occurred—

Cory Bernardi (SA, Liberal Party, Shadow Parliamentary Secretary for Families and Community Services) Share this | Link to this | Hansard source

The largest in history.

Rod Kemp (Victoria, Liberal Party) Share this | Link to this | Hansard source

probably the largest that we have ever seen. The second thing is that there is a huge effort to have it covered up. During the estimates process I asked some senior public servants if we could have a list of the election commitments that were being administered by their department. That was a very straightforward question. To be quite frank, I was embarrassed for the senior public servants who had to fend off these questions. And I say to the Labor Party: the contempt that the public service must start to feel when they are asked to take part in a Labor Party cover-up should not be underestimated. You cannot treat people in this fashion. You cannot ask senior public servants—secretaries of departments—to attempt to obfuscate and to pretend that they have not got lists of the election commitments which they are being asked to administer. It is not right to require that of senior people in the public service. I have to say that it is yet another example of how Labor is failing in its relations with the Australian Public Service.

My argument is simply this: all of us know that pork-barrelling occurred to an extraordinary extent during the last election. We know it occurred in the area of sports. I have a list here which I have been prevented by Senator Wortley from tabling. I do not want Senator Wortley to take part in a cover-up. That would be most unfortunate. I do think that it is important that the public know precisely what has occurred under the Labor Party, and I make it very clear to the chamber that I have no doubt that this matter is going to be vigorously pursued by my colleagues in the days, the weeks and the months to come.

Jan McLucas (Queensland, Australian Labor Party, Parliamentary Secretary to the Minister for Health and Ageing) Share this | Link to this | Hansard source

I think it is appropriate that I respond to some of the points that have been made by Senator Bernardi and Senator Kemp. First of all, I would like to go to the issue, Senator Kemp, of why leave was not granted to table the document that you wished to table. It is normal practice in this place, as you know, that documents are shown in good time to the whip—to the Government Whip in this case. I think you would certainly agree that a couple of minutes before beginning to speak on a contentious question, a politically contentious question—

Cory Bernardi (SA, Liberal Party, Shadow Parliamentary Secretary for Families and Community Services) Share this | Link to this | Hansard source

It’s not contentious; it’s factual.

Jan McLucas (Queensland, Australian Labor Party, Parliamentary Secretary to the Minister for Health and Ageing) Share this | Link to this | Hansard source

I will go to that point in a moment, Senator Bernardi. But that is the normal process and that was not followed. Senator Bernardi has used quite the language of opposition. It suits him well. He has learnt it quickly. It is very easy to use very colourful language with flourish when you are in your position, Senator Bernardi. But the thing is that you have been told on a number of occasions why we are in this situation—why we are going through the proper process and why we are ensuring that due diligence is undertaken, unlike what the former government did in the infamous Regional Partnerships program. We are undertaking the process correctly, and Senator Bernardi simply does not want to listen. He is trying to run a story out there in the media and the legitimate answers to his questions do not suit his story so he prefers not to listen.

In total there are over 100 separate facilities projects across health and infrastructure. We are progressively working through the task of conducting some basic due diligence on each one. Progressively we are making formal, independent, public announcements when those due diligence processes have been completed. This is what Senator Bernardi refuses to understand. This is the way you spend taxpayers’ money wisely. This is what you need to do before you spend taxpayers’ money. You simply need to find out whether or not the project will be delivered. That is why you do due diligence. That was not done, and I have many examples of when it was not done, in Regional Partnerships. The process of negotiating and conducting a proper funding agreement with project proponents is an ongoing one. Senator Bernardi has raised a couple of specific examples, and I will give some information to the Senate on those.

In respect of facilities funding in Penrith there are two separate projects: one project is the Penrith stadium upgrade of $5 million and another is the Penrith Valley Regional Sports Centre upgrade of $250,000. I can confirm that both have received funding in the budget and, while a funding agreement has yet to be concluded for either, we do not envisage there being any impediments to the conclusion of funding agreements for each of these two Penrith projects in the future.

Cory Bernardi (SA, Liberal Party, Shadow Parliamentary Secretary for Families and Community Services) Share this | Link to this | Hansard source

Why did you try to hide them then?

Jan McLucas (Queensland, Australian Labor Party, Parliamentary Secretary to the Minister for Health and Ageing) Share this | Link to this | Hansard source

Well, if you had not been talking to your whip when I was explaining the process, Senator Bernardi, you might have actually understood. You might like to have a look at the Hansard and then you will understand what in fact due diligence is.

Cory Bernardi (SA, Liberal Party, Shadow Parliamentary Secretary for Families and Community Services) Share this | Link to this | Hansard source

Senator Bernardi interjecting—

Judith Troeth (Victoria, Liberal Party) Share this | Link to this | Hansard source

Order! I have allowed a reasonable amount of interjection, and I am happy to take that, but the level of interjection is becoming disorderly. You have had your moment and Senator McLucas needs to have hers.

Jan McLucas (Queensland, Australian Labor Party, Parliamentary Secretary to the Minister for Health and Ageing) Share this | Link to this | Hansard source

I can also confirm that funding for the Traralgon West Sports Complex was announced by the government on 20 June. This is an example of how the number of projects formally announced by the government post budget will continue to increase week by week as the due diligence process is completed and as discussions are held with proponents and potential other funding sources.

This is a government doing the right thing—making sure that taxpayers’ money that is going to be spent will deliver the outcome that is expected. We could remember the $400,000 that was paid to the Indigo Cheese Company—the cheese factory whose doors were in fact closed, with $22,000 being paid to them three months after the closure. We could remember the half a million dollars that was given to the Mareeba wildlife park about a month and a half before it went into receivership.

Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

And you were opposed to that wildlife park.

Jan McLucas (Queensland, Australian Labor Party, Parliamentary Secretary to the Minister for Health and Ageing) Share this | Link to this | Hansard source

That is what your government did, Senator Abetz—a half a million dollars.

Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

And?

Jan McLucas (Queensland, Australian Labor Party, Parliamentary Secretary to the Minister for Health and Ageing) Share this | Link to this | Hansard source

It went into receivership about six weeks after you gave them that money, so it is dead. It is not happening. Half a million dollars went nowhere. That is because due diligence was not undertaken. That is why we are undertaking due diligence now. It is a good and sensible process to go through and one that Senator Bernardi is determined not to understand. There will therefore be a rolling schedule of public statements as the due diligence process continues and subsequent formal announcements are made by the government. The government has absolutely nothing to hide and certainly nothing to fear. While we are proud of funding over 100 local sports facilities projects in the budget, we are also pleased to ensure there is an appropriate process in place before formally announcing project funding after the budget.

While we are happy to clear up any confusion, Senator Bernardi might reflect upon the fact that the coalition did not follow such due process when administering their now famous Regional Partnerships program and Sustainable Regions program. The fact that the opposition got the process so wrong has reaffirmed the government’s resolve to get this process right. As I said earlier, Senator Bernardi thinks he has a story that he can trot around to the papers. Senator Bernardi does not bother listening to the very sensible answers that the minister provided in a statement to the Senate yesterday and that I hope I have been able to provide today. This is good government, good practice, making sure that we do not end up doing things like your government did—that is, throwing money around wildly without undertaking any due diligence on the process.

If I had some more time, and had had a little more time to prepare, I could have gone through the many projects that started the whole inquiry into the Regional Partnerships program and the Sustainable Regions program. Have you read the Australian National Audit Office’s report that, one by one, goes through the lack of process that was undertaken by the previous government and as a result the abject waste of taxpayers’ money? We do not have time to do that now. This government has learned from the previous government’s mistakes and we intend to ensure that taxpayers’ money allocated to good sporting projects and good facilities projects will turn benefits for those small communities. We do not want to be throwing money where it is not going to turn into an outcome.

Senator Bernardi, I hope I have been able to provide some clarity in answer to your questions but I do fear that your desire for a headline means that you will not bother thinking through what this government is doing—that is, being wise with taxpayers’ money so that we get an outcome for children and for users of sporting facilities around Australia. I think my fears are right—I think Senator Bernardi is still seeking that headline and not bothering to listen to the answer.

Question agreed to.