'Another rort': Infrastructure program awarded 94% of grants to Coalition, marginal seats

A regional infrastructure grants program administered by the Deputy Prime Minister awarded 94 per cent of its grants to electorates held or targeted by the Coalition in the months leading up to the federal election.

A day after the Nationals' Bridget McKenzie resigned as agriculture minister over the $100 million sports grants saga, Labor infrastructure spokeswoman Catherine King has asked the Auditor-General to "take a thorough look" at the Building Better Regions Fund infrastructure grants program administered by Michael McCormack.

Deputy Prime Minister Michael McCormack (right), seen with Prime Minister Scott Morrison, said more Coalition seats received grants because "we hold more regional seats".Credit: AAP

Analysis by Nine News, The Sydney Morning Herald and The Age reveals 156 of the 166 infrastructure grants announced two months before the election went to Coalition-held seats, or electorates the Coalition was targeting.

"This appears to be another Morrison government rort," Ms King said.

Nine grants were awarded to the seat of Indi, totalling more than $4 million.

The Nationals were trying to win that seat from an independent. It had been a Liberal seat for years before being won by Cathy McGowan in 2013.

Catherine King, Labor's spokeswoman for infrastructure, transport and regional development, has called for fresh scrutiny of the grants program.Credit: Alex Ellinghausen

Grants totalling $7 million also went to nine organisations in the marginal Victorian electorate of Corangamite.

There were also nine grants to Melissa Price's West Australian electorate of Durack and four to George Christensen's Queensland electorate of Dawson, totalling $4.5 million.

Community organisations across the country applied for the grants through the Infrastructure Department but the final decision on where the money went was made by a ministerial panel chaired by Mr McCormack in consultation with cabinet.

Defending the grants, Mr McCormack said the weight of regional seats explained the distribution of the money.

"Overall the Building Better Regions Fund goes to more Coalition seats, because we hold more regional seats. Labor doesn't hold that many regional seats."

Projects in the Labor seat of Eden Monaro, targeted by the Coalition, received four grants, the same number as Mr Christensen's electorate.

The analysis also found grants in round three went to organisations in Health Minister Greg Hunt's Victorian electorate of Flinders, which is designated "urban" under other government schemes.

A grant was also awarded to a program in Peter Dutton's electorate just outside Brisbane.

"As the Nationals leader, as Minister for Regional Development, I'll always make sure that regional funding goes to regional areas. No one could point the finger at this project and say, 'It wasn't worthy, it wasn't fair,' " Mr McCormack said.

The revelations follow the Auditor-General's damning critique of Senator McKenzie's handling of the $100 million sports grants program.

She resigned from cabinet and as deputy leader of the Nationals on Sunday having failed to declare she was a member of a gun club which was awarded a $36,000 grant.

Asked if his program was similar to Senator McKenzie's, the Deputy Prime Minister denied any suggestion of wrongdoing.

"Whoever wrote that question should go and take a look at themselves. That is a ridiculous question," Mr McCormack said.

Two grants totalling $1 million were also awarded to organisations in the Nationals leader's Riverina electorate.

The flurry of announcements in Indi in March last year, spearheaded by Senator McKenzie, prompted a complaint to the Auditor-General by the then-sitting MP Cathy McGowan, but there was not an audit.

Ms King wants a fresh look, adding there could be a separate inquiry from the Senate inquiry into the sports grants affair.

"There isn't a publicly funded grants program [Prime Minister] Scott Morrison won't use for his own political purpose," she said.