Eurobodalla Council lodged a grant application for the new Batemans Bay pool with NSW Sport. The business case they lodged was not fit for purpose and NSW Sport advised that the proposed 25m pool had no sporting component and therefore failed to qualify. In early March 2018, Regional Sports Infrastructure Fund informally advise a member of the public that the Sports Grant did not succeed in its application. Council had already be advised a month earlier. Gladys Berejiklian and the Member for Bega the Hon. Andrew Constance came to Batemans Bay on 26 March 2018 to announce $26m of funding towards the construction of the Regional Aquatic, Arts and Leisure Centre at Mackay Park Batemans Bay. It was announced that "The $26 million in funding includes $18 million for the aquatic centre, and $8 million for the arts and cultural facilities." The $8 million was to come from Round Two that would not be open for applications for another six months and would not be judged and announced until October 2018. But here it was, announced as granted, in March 2018 Gladys Berejiklian and the Member for Bega the Hon. Andrew Constance On the 15th August 2018 the Hon. LYNDA VOLTZ asked a question without notice directed to the Minister for Resources, Minister for Energy and Utilities, and Minister for the Arts. Given the Premier and the member for Bega jointly announced on 26 March that they would provide $26 million for a new indoor aquatic and cultural centre at Batemans Bay consisting of $18 million for the aquatic centre and $8 million for the arts and cultural facility, where will the $8 million for the arts and cultural component be drawn from?
The Hon. DON HARWIN: As I informed the House yesterday, people should be aware that the Regional Cultural Fund round two is open. I imagine this project would be eligible but I need to check if there is an existing funding agreement.
The Hon. DON HARWIN (Minister for Resources, Minister for Energy and Utilities, and Minister for the Arts) (15:31): I may have covered this question in my answer yesterday but, if I did not, it is planned that round two announcements will be made before the end of this calendar year. I cannot be more specific at this stage.
The Hon. Peter Primrose: It is supposed to be a competitive process and you are announcing it already. Of interest, and in regard to the Bay Pavilion theatre grant of $8 million announced by Gladys Berejiklian and the Member for Bega the Hon. Andrew Constance the Bega Valley Regional gallery was rated the top funding priority in the Round Two regional arts grants scheme but missed out while the Batemans Bay aquatic and cultural centre, ranked 72nd in the opinion of the judging panel who sat to look at applications in September 2018, six months after the grand announcement.
ABC News reported: Independent assessors praised Bega Valley Regional Gallery's application for $3 million to fund its renovations as part of the NSW Government's $47 million Regional Cultural Fund.
There were more than 150 eligible applications for funding as part of the scheme.
Documents obtained by the ABC under freedom of information laws reveal the Bega project was overlooked in favour of an $8 million investment to help build the Mackay Park Aquatic, Arts and Cultural Centre in nearby Batemans Bay.
Deputy Premier John Barilaro and then-arts minister Don Harwin signed off on the Regional Cultural Fund grants in late 2018.
The New South Wales premier, Gladys Berejiklian later conceded that grants to councils that were approved in the nine months before the last state election (March 2019) amounted to pork barrelling, but said there was nothing illegal about it.
“It’s not something the community likes ... but it’s an accusation I will wear,” she said. It’s not unique to our government,” Berejiklian said.
“It’s not an illegal practice. Unfortunately it does happen from time to time by every government,” she said.
Above: reading this document, revealed in the current ICAC investigations, one might draw a bow of parallels and develop their own questions of processes that, on the surface, appear similar regarding business cases and due diligence.
The question remains. Were Gladys and Andrew aware in March 2018 that the $8 million grant, that they announced for the Batemans Bay Theatre, was pork-barrelling?
NOTE: In October 2018, the Australian Government assigned $25M to the project, and invited Council to submit a FULL business case to the Regional Growth Fund for assessment.
What is known in regards to the Federal Grant was that the business plan adopted by Council in August 2017 WAS NOT a full business plan and clearly advised it was NOT to be used for the purpose of grant applications. Between October 2018 and April 2019 the application for the $25m was assessed and found to comply.
In an email to FOI@infrastructure.gov.au on 31st October 2018 by The Beagle "The Eurobodalla Shire Council, in having been successful in Round one of the Regional Growth Grants will now be required to prepare a Full Business Case. In a telephone call to your office it was confirmed that candidates are provided a template to assist with that Full Business Case.
For the purpose of news, so as to ascertain if the Full Business Case takes into consideration the ongoing affordability of ratepayers to support such new infrastructure without it becoming a financial burden, I request a copy of the default template to establish what criteria is measured under a Full Business Case and to determine if there is due diligence paid to the proven affordability of such a grant without it becoming a financial risk requiring either a rate increase or a removal of services.
As the Full Business Case template will have no information on it whatsoever I would not consider it impinging on any commercial in confidence. Once the Eurobodalla Council provide their Full Business Case I will be seeking a copy of that document as well."
A formal request by for that application has been refused by Council so the application details and business case presented remain unseen.
NOTE: November 2019 The Australian National Audit Office found and revealed that the assessment processes for a separate round of Regional Jobs and Investment Packages (that included Gilmore) were "not to the standard required by the grants administration framework" and that "there was insufficient evidence that each of the more than 60 individuals that undertook the assessments received adequate training.
Australian Government Grants Reporting PUBLISHED Tuesday 19 October 2021 has found that:
- By value, between 31 December 2017 and 30 June 2021 most grants (forty-two per cent) were awarded through a closed non-competitive selection process. However, ad hoc/one-off grants were the most numerous (twenty-four per cent)
- Twelve per cent of grants selected through an open competitive selection process were approved before the closing date of their associated grant opportunities
Above: Regional development grants - Of 5005 regional development grant recipients, seven of the top ten recipients by value were local councils and Eurobodalla was NUMBER 4 due to our $25 million grant for the Batemans Bay Regional Aquatic Centre and 350 seat hall.
