Minns urges opposition to join clean-up of NSW’s ‘shameful record’ on grants

Premier Chris Minns has implored the opposition to support new legislation to clean up government grants in NSW after it oversaw scandals in emergency bushfire and local council funding that overwhelmingly favoured Coalition seats.

Acting on a key Labor election promise on Thursday, Minns insisted his government could return fairness and transparency to government programs and right the state’s “shameful record” on grants.

NSW Premier Chris Minns vowed to reform government grants as part of his election campaign.Credit: James Brickwood

“I think that there’s an opportunity to excise the shame that Coalition parties obviously have as a result of this terrible record when it comes to grants,” Minns told parliament. “Support the government’s legislation, bring transparency back to grants in NSW during a natural emergency. It shouldn’t matter who you vote for.”

Labor vowed to reform government grants programs as part of its successful election campaign, propelled by damning revelations that the office of former deputy premier John Barilaro devised its own rules to fast-track $100 million in emergency funding to areas hit by the 2019 Black Summer catastrophe.

The switch meant 96 per cent of projects funded were in Coalition-held seats, and away from Labor-held electorates.

Revelations about the program attracted widespread condemnation, including from leading law and integrity experts and Prime Minister Anthony Albanese, for politicising disaster funding.

Less than two months before the election Minns gave the former deputy premier a 24-hour ultimatum to explain the reasons behind the 2021 funding program, before he referred the scheme to the corruption watchdog.

NSW Auditor-General Margaret Crawford conducted a review of the contentious scheme, finding that she could not rule out that a lack of information in program guidelines and formal documentation was “a purposeful attempt to avoid transparency and accountability”.

Crawford’s report raised fresh questions about pork-barrelling, which plagued the Coalition after the 2019 election when it emerged it spent the majority of a $250 million council grants program in its own seats.

Reviewing that program in 2022, Crawford found “little or no basis” for how the former government under then-premier Gladys Berejiklian awarded grants, with the only record of their approval a series of emails from its staff.

Crawford said documents indicated that the allocation of funds to almost entirely government-held seats was most likely deliberate.

Former NSW deputy premier John Barilaro’s office intervened in a $100 million bushfire funding program.Credit: Nick Moir, Kate Geraghty

Under the new legislation, a person who approves or declines a grant must consider seven key principles, including transparency, governance and accountability. A minister must also not approve a grant unless satisfied it is an efficient, effective, economical and ethical use of money, and that it achieves value for money.

Grants programs would have a designated decision maker, while public access to grants information would be widened under freedom of information laws.

NSW Special Minister of State John Graham said the new parameters would end pork-barrelling in NSW.

“Under the last government, firefighters in a Labor electorate were denied a grant, while a skydiving adventure park in a Nationals seat received millions of dollars,” he said. “The disrespect of public money shown by our predecessors was a disgrace.”

The state government typically spends about $4 billion on grants every year.

Treasurer Daniel Mookhey said it should not matter whether it was a $500 grant for a local football club or a multimillion-dollar grant program.

“Grants need to be delivered fairly and deliver value for NSW taxpayers,” he said.

The Morning Edition newsletter is our guide to the day’s most important and interesting stories, analysis and insights. Sign up here.