The Times Australia
Mirvac Harbourside
The Times World News

.

The 'car park rorts' story is scandalous. But it will keep happening unless we close grant loopholes

  • Written by Yee-Fui Ng, Associate Professor, Faculty of Law, Monash University

On Monday, a senate hearing produced yet more[1] damning evidence about the “car park rorts” affair.

The Australian National Audit Office told a parliamentary committee a list of the top 20 marginal electorates guided the distribution of a $389 million car park construction fund during the 2019 election campaign.

Sitting Coalition MPs were invited to nominate projects for funding. In some cases, money was allocated to electorates when a project had not yet been identified. An adviser from the Prime Minister’s Office was involved in the funding allocation — the same adviser involved in the “sports rorts” incident.

Earlier this month, the Audit Office released a scathing report[2], finding 77% of the commuter car park sites selected were in Coalition electorates, rather than in areas of real need with congestion issues. None of the 47 project sites selected for funding commitment were proposed by the infrastructure department.

So, why do these rorts keep happening? What mechanisms are in place to try and stop them? And what further protections do we need?

Why do rorts keep happening?

Pork-barrelling involves the channelling of public funds to government electorates for political purposes, rather than proper allocation according to merit.

We have been inundated with pork-barrelling scandals in recent years. This includes the “sports rorts” scandal[3] that led to Bridget McKenzie’s resignation from cabinet last year, and NSW Premier Gladys Berejiklian’s biased distribution of the Stronger Communities fund[4].

A victorious Scott Morrison with his family on election night 2019. The Audit Office has delivered a damning assessment of the Coalition’s car park fund. Mick Tsikas/AAP

Australia has a single member electorate parliamentary system, which makes it more susceptible to pork-barrelling than multi-member electorates like Norway or Spain. The belief is that politicians who “bring home the bacon” for their constituents are electorally rewarded for doing so.

This means there are incentives for the central cabinet to strategically apportion benefits to marginal electorates to increase prospects of electoral success. There is also an incentive to bias the apportionment of funds towards the party in power.

In short, rorts scandals keep happening because governments believe that channelling money to marginal and government electorates will win them elections.

What are the accountability arrangements for grants?

At the federal level, we have sophisticated financial management legislation[5] that provides a framework for grant rules. The Commonwealth grant rules[6] provide a detailed set of guidelines that ministers and government officials must follow on grant application and selection processes.

Read more: Another day, another rorts scandal – this time with car parks. How can we fix the system?[7]

However, there are significant loopholes in the rules. For example, the “car park rorts[8]” scandal is not covered by these rules because it involves money being channelled through the states.

Also, there are no sanctions for breaching the rules. So ministers and government officials can break the rules without any repercussions.

Who keeps an eye on the grants?

The auditor-general is the main actor who investigates federal grants administration. The auditor-general has significant coercive powers, and is independent of government. Although the auditor-general lacks the power to change governmental practices, the publicity of their reports may encourage government agencies to respond in a positive and productive way.

In Australia, parliaments have a strong constitutional role as overseers of the activities of government.

Australian National Audit Office executive director Brian Boyd Australian National Audit Office executive director Brian Boyd appeared before a senate committee on Monday. Lukas Coch/AAP

Parliamentary committees have become the main form of scrutiny of government in recent years. They are set up to investigate specific matters of policy or to evaluate the performance of government.

Parliamentary committees are normally tasked with making inquiries into matters by taking submissions, hearing evidence and reporting their findings to parliament. They have been highly effective identifying and investigating issues relating to government rorts.

Where to now?

To fix the system, we need to reform the rules about grants allocation and close the loopholes. We also need to impose punishment for breaching the rules.

Read more: The 'sports rorts' affair shows the need for a proper federal ICAC – with teeth[9]

It is imperative our grants administration system be reformed to ensure that taxpayer funds are protected from governmental abuse. If the ministerial discretion available in grants processes is improperly used, this can give rise to political favouritism and corruption.

Ministers, as our elected representatives, are the custodians of public trust. As part of a well-functioning democracy, it is important there is probity, transparency and accountability in the use of public funds.

Read more https://theconversation.com/the-car-park-rorts-story-is-scandalous-but-it-will-keep-happening-unless-we-close-grant-loopholes-164779

Mirvac Harbourside

Times Magazine

YepAI Joins Victoria's AI Trade Mission to Singapore for Big Data & AI World Asia 2025

YepAI, a Melbourne-based leader in enterprise artificial intelligence solutions, announced today...

Building a Strong Online Presence with Katoomba Web Design

Katoomba web design is more than just creating a website that looks good—it’s about building an onli...

September Sunset Polo

International Polo Tour To Bridge Historic Sport, Life-Changing Philanthropy, and Breath-Taking Beau...

5 Ways Microsoft Fabric Simplifies Your Data Analytics Workflow

In today's data-driven world, businesses are constantly seeking ways to streamline their data anal...

7 Questions to Ask Before You Sign IT Support Companies in Sydney

Choosing an IT partner can feel like buying an insurance policy you hope you never need. The right c...

Choosing the Right Legal Aid Lawyer in Sutherland Shire: Key Considerations

Legal aid services play an essential role in ensuring access to justice for all. For people in t...

The Times Features

Macquarie Bank Democratises Agentic AI, Scaling Customer Innovation with Gemini Enterprise

Macquarie’s Banking and Financial Services group (Macquarie Bank), in collaboration with Google ...

Do kids really need vitamin supplements?

Walk down the health aisle of any supermarket and you’ll see shelves lined with brightly packa...

Why is it so shameful to have missing or damaged teeth?

When your teeth and gums are in good condition, you might not even notice their impact on your...

Australian travellers at risk of ATM fee rip-offs according to new data from Wise

Wise, the global technology company building the smartest way to spend and manage money internat...

Does ‘fasted’ cardio help you lose weight? Here’s the science

Every few years, the concept of fasted exercise training pops up all over social media. Faste...

How Music and Culture Are Shaping Family Road Trips in Australia

School holiday season is here, and Aussies aren’t just hitting the road - they’re following the musi...

The Role of Spinal Physiotherapy in Recovery and Long-Term Wellbeing

Back pain and spinal conditions are among the most common reasons people seek medical support, oft...

Italian Lamb Ragu Recipe: The Best Ragù di Agnello for Pasta

Ciao! It’s Friday night, and the weekend is calling for a little Italian magic. What’s better than t...

It’s OK to use paracetamol in pregnancy. Here’s what the science says about the link with autism

United States President Donald Trump has urged pregnant women[1] to avoid paracetamol except in ...