The Federal Government has defended the time it is taking to distribute $100 million in federal funding attached to the forestry peace deal. Source: ABC
The money was announced by the previous federal Labor government to help diversify the economy after the downturn in the forest industry.
Employment Minister Eric Abetz has announced that the Claremont football and cricket clubs will receive $200,000 to spend on upgrades to the Abbotsfield Park ground in Hobart’s northern suburbs.
Senator Abetz said all of the projects are now being assessed for value for money under a due diligence provision set up by Labor.
He is warning some grants might not hold up under scrutiny, but the Government is doing exactly what Labor said it would do.
One of the conditions of the announcement was – albeit in the fine print – by Labor, that due diligence would need to be undertaken,” the minister said.
“The Australian taxpayer does have the right to expect that money is only paid out after the due diligence process.”
Independent Denison MP Andrew Wilkie is urging the Government to deliver the money more quickly, but Senator Abetz says he can not predict time frames.
“The due diligence are being undertaken and it stands to reason that each project will take a different length of time for those steps to be gone through.”
Mr Wilkie said one-off grants are essential to help Tasmania’s economy rebound. He is also arguing Tasmania be quarantined from coming budget cuts at the Antarctic Division and the CSIRO.
“I would hope that the Federal Government would look elsewhere in the country to make the cuts,” Mr Wilkie said.
But Senator Abetz said that nowhere in Australia would be exempt from public sector cuts.
He said Australia’s public sector is too large, and many of the cuts the Government is considering were also on Labor’s radar when it was in power.
