PM Anthony Albanese forces review of SA grants after Scott Morrison’s power grab

The revelation of Scott Morrison’s secret ministry power grab has forced a review of several key South Australian projects. Find out what’s under threat.

A project expected to create thousands of jobs and transform South Australian agriculture is among a raft of ventures now under review after former prime minister Scott Morrison’s secret cabinet power grab was revealed.

Anthony Albanese on Sunday ordered a review of several grants awarded under the federal government’s $1.3bn Modern Manufacturing Initiative while Mr Morrison was secretly in charge of five ministries, including the industry, science and resources portfolio.

Many of the scheme’s SA programs were unveiled in March during former premier Steven Marshall’s ultimately unsuccessful state election campaign.

Mr Morrison’s office confirmed he had the final say on the grants, “based on the recommendations” of then-industry minister Angus Taylor.

Former prime minister Scott Morrison was secretly in charge of five portfolios. Picture: Steven Saphore / AFP

Among those to be audited is a $113m grant awarded to a consortium involving Thomas Foods International, to build three new plant-based food manufacturing hubs in SA.

The project is expected to create 8500 jobs across the country and generate billions of dollars in exports, but the grant was announced without a formal contract.

The Advertiser can confirm a $22.6m grant, also unveiled in March, for Saab Australia’s expansion of its Mawson Lakes headquarters was also not under contract.

Also announced in March was a $26.1m grant for the Australian Space Park at Adelaide Airport.

Prime Minister Anthony Albanese on Sunday said the Industry, Science and Resources Department would honour “all contracts that have been entered into”.

Mr Morrison secretly appointed himself co-industry minister in April 2021 – adding to other covert roles as joint minister for the health, finance, home affairs and treasury portfolios.

“There are a range of these programs that were announced but not contracted, including during the (federal) election campaign, and the department is examining the merits of them,” Mr Albanese told Sky News.

“We want to make sure that proper process takes place here and what we’ve seen with the former government is that the process was just thrown out the window.”

Prime Minister Anthony Albanese said the grants not under contract would be reviewed. Picture: NCA NewsWire / Gary Ramage

A spokeswoman for Mr Morrison said “all decisions on these grants were made by the (former) PM, as the public guidelines set out … following an exhaustive process administered by the department”.

“Unlike other elements of the MMI Programme, the collaborative stream involved more significant grants impacting on a broader array of portfolios,” the spokeswoman said.

Opposition spokesman Simon Birmingham said future manufacturing jobs “aren’t a thing to play politics with”.

“Every month of delay or review is time wasted when South Australia should be receiving the support promised to lead Australia’s development of high-tech jobs in agriculture, space and defence,” the SA senator said.

Serving Industry Minister Ed Husic’s spokesman said SA businesses had put in “great bids” and that companies would be informed of the review’s outcome “shortly”.

Brendan McKeegan, the co-founder of Australian Plant Proteins, which is leading the consortium with Thomas Foods, said his project was a “once-in-a-generation opportunity” for Australia in the global supply of plant proteins.

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Originally published as PM Anthony Albanese forces review of SA grants after Scott Morrison’s power grab