Investigation launched into Labor’s mobile phone black spot scheme

The federal spending watchdog has opened an investigation into the government’s mobile black spot program, which the Coalition claims targeted Labor electorates to help win the last election.

The Australian National Audit Office investigation announced on Wednesday is the first into alleged pork-barrelling by the government since the election, at which the Coalition itself faced criticism over grants for sporting facilities and car parks that favoured seats it held or wanted to wrest from Labor.

Communications Minister Michelle Rowland has repeatedly defended her conduct in awarding the grants.Credit: Alex Ellinghausen

The audit office said it would investigate whether the telecommunications spending, which totalled more than $40 million, was allocated in a manner consistent with federal grant rules.

“Were ... funding decisions informed by clear advice and consistent with the grant opportunity guidelines?” its website asks.

Communications Minister Michelle Rowland has repeatedly defended her conduct in awarding the grants, which went towards improving mobile phone reception in rural and remote communities. She has said they funded commitments made before the election and were therefore different from Coalition scandals where ministers overrode departmental advice.

Her spokesman said the government would work with the audit office, adding that the “funding fulfils election commitments made in opposition to address mobile coverage challenges not addressed by the [Coalition] over nine long years – including bushfire-impacted areas”.

Coalition communications spokesperson David Coleman wrote to the audit office requesting the investigation.Credit: Alex Ellinghausen

Coalition communications spokesman David Coleman, who wrote to the audit office requesting the investigation, said the “walls were closing in” on the minister. Rowland hand-picked Labor electorates for 74 per cent of the funding grants nationwide in round six of the program, he said, despite Labor representing a third of regional seats.

“There are three words to describe the government’s conduct on this matter: dodgy, dodgy and dodgy,” Coleman said in a statement.

“What person could possibly think that 100 per cent of the need for mobile coverage in NSW and Victoria was in Labor electorates? The minister’s decision to allocate funds in this way is outrageous. Many communities in non-Labor electorates were completely ignored by minister Rowland, despite being in desperate need of improved mobile coverage.”

The seven key principles for the administration of Commonwealth grants are: robust planning and design; collaboration and partnership; proportionality; an outcomes orientation; achieving value with relevant money; governance and accountability; and probity and transparency.

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