Inquiry into union grant spend

UNIONS Tasmania is being investigated over how it spent a grant to assist injured workers.

UNIONS Tasmania is being investigated over how it spent a grant to assist injured workers, as its secretary, Kevin Harkins, refuses to say whether it funded a work car, speaking fees and office furniture.

State Justice Minister Vanessa Goodwin has ordered her department to investigate how the state’s peak union body spent a $190,000 grant for the Worker Assist Program, made by the previous Labor government last year for 2013-14.

There is concern in union and legal circles that some of the funds have been diverted to other Unions Tasmania purposes, rather than being spent on helping sick and injured workers.

Mr Harkins has refused for several days to respond directly to questions from The Australian about whether the funds were used to pay for a $50,000 UT car and speaking fees for talks to schoolchildren.

The union boss and senior Labor Left figure also refused to say if the funds were used to pay for office furniture, air-conditioning and the salary of faction­al ally Adam Clarke as UT campaigns and youth engagement officer.

Dr Goodwin confirmed that an investigation, prompted by questions from The Australian, was under way into how the grant — made last year from the Solicitors’ Guarantee Fund — had been spent.

She said the previous Labor government had no process to ensure the grant was used for the purpose for which it was allocated.

Despite repeated requests, Mr Harkins and UT president Roz Madsen declined to give an assurance that all the $190,000 was spent on the Worker Assist ­program.

Neither official would explicitly say why UT appeared not to have used the funds to employ a part-time social worker, as it promised to do in its funding application. Ms Madsen declined to say whether she had full confidence in Mr Harkins.

Worker Assist reports show a significant decline in the number of investigations and interventions handled, from highs of 90 per quarter to about 12.

This is despite significant grants for the program from the SGF — $100,000 in 2012-13 and $190,000 in 2013-14 — and ongoing funding from WorkCover of $632,500 since 2011, to be followed by a further $517,500 by July 2016.

Mr Harkins appeared to confirm that the Worker Assist grant had been diverted to youth ­programs.

“After discussions with Unions Tasmania affiliates, it was decided that the task of providing these (Worker Assist) services was substantial and would be difficult to implement,” he said.

“(UT) Council decided to adjust our focus to concentrate on ... areas of concern to youth.”

Then attorney-general Brian Wightman had “fully supported” the diversion, he said.

Mr Wightman said he recalled discussing youth issues with Mr Harkins, but could not recall approving the diversion. All his actions as attorney-general had been “by the book”, he said.

Mr Harkins said an officer had been appointed to oversee a youth project and that this project began on Tuesday this week.