Scott Morrison had final say over $828million worth of grants

On Aug 20, 2022

Scott Morrison was given powers that allowed him to have the final say over $828million worth of grants which he handed out weeks before the federal election.

The former prime minister and his colleagues announced 12 grants between March 1 and April 4 before the Coalition government called the election for May 21.

Another five grants were then announced during the election campaign.

The revelations have emerged after the Department of Industry, Science and Resources launched a review in June.

Scott Morrison (pictured) was given powers that allowed him to have the final say over $828million worth of grants which he handed out weeks before the federal election

Mr Morrison was given decision-making powers that were above then-industry minister Christian Porter (pictured) and his successor Angus Taylor

The review looked at funding decisions made by the Morrison government for billions of dollars worth of grants.

It came as manufacturing companies complained they had to wait a long time for their grants after the government made the announcements closer to the election.

The review found Mr Morrison was able to have the final say over the grants because of the Modern Manufacturing Initiative scheme.

Businesses applying for the grants were informed their applications would be considered by a committee before the prime minister made the final decision.

The decision-making structure appeared to be different to the typical process where individual grants were decided by the ministers for each industry.

Mr Morrison was given decision-making powers that were above then-industry minister Christian Porter and his successor Angus Taylor.

Industry minister in the new Labor government, Ed Husic, questioned why the grants were announced so close to the election.

‘It is astonishing the former prime minister took on a role normally reserved for the responsible minister,’ he told Sydney Morning Herald.

‘Given what we now know, it shouldn’t come as a surprise, but it frankly beggars belief.’

A spokesman for Mr Morrison said the then-prime minister only approved the applications and did not play a hand in the decision-making process.

‘The program involved significant grants of on average about $40 million to companies involved in projects that impacted on many different portfolio areas,’ he said.

The former prime minister (pictured, with partner Jenny) and his colleagues announced 12 grants between March 1 and April 4 before the Coalition government called the election for May 21

‘The program was designed before the former prime minister was sworn to administer matters in that department, for other reasons that have been set out in the former prime minister’s statement this week, and the two issues are entirely unrelated.

‘The decisions did not require the prime minister to be sworn to that department.’

Daily Mail Australia contacted Mr Morrison for comment.

The revelation adds to a turbulent week for Mr Morrison after it was revealed he secretly appointed himself to five ministerial roles between 2020 and 2021.

Mr Morrison gave himself the powers to act as health minister, finance minister, resources minister, home affairs minister and treasurer.

Experts say the moves were legal but highly unusual, while none of the ministers knew they were sharing their jobs except former health minister Greg Hunt.

Mr Morrison has insisted that he acted ‘in good faith’ throughout the Covid pandemic and was doing what he thought was best for the nation

Mr Morrison has insisted that he acted ‘in good faith’ throughout the Covid pandemic and was doing what he thought was best for the nation.

But his critics have accused him of having a power trip and deceiving the Australian public – as well as parliamentary colleagues – by secretly taking on the extra ministerial portfolios.

Commentators across the political spectrum believe the saga has crushed his reputation.

‘This will damage Scott Morrison’s legacy,’ said seasoned political commentator Paul Kelly of The Australian.

‘The whole thing is weird and just unnecessary… Scott Morrison can’t provide a persuasive argument as to why he did it.

‘All other ministers can conclude is Scott Morrison had a lack of confidence and trust in them.’

Mr Morrison insisted on Wednesday that Australians wouldn’t understand his power grab because they had never been prime minister.

SCOTT MORRISON STATEMENT ON MINISTRY PORTFOLIO SCANDAL

The devastating impacts of the COVID-19 pandemic and associated recession required an unprecedented policy response from our government.

These were extraordinary times and they required extraordinary measures to respond. Our government’s overriding objective was to save lives and livelihoods, which we achieved. To achieve this we needed to ensure continuity of government and robust administrative arrangements to deal with the unexpected in what was a period of constant uncertainty during the nation’s biggest crisis outside of wartime.

Information and advice changed daily and even hourly. Meetings with ministers, officials and advisers were constant, as was liaison with industry and other stakeholders as we were dealing with everything from supply chain shocks to business closures, the overwhelming of the social security and hospital system and the sourcing of critical medical supplies and workforce. The prospect of civil disruption, extensive fatalities and economic collapse was real, especially in the early stages, which was occurring in other parts of the world.

The risk of ministers becoming incapacitated, sick, hospitalised, incapable of doing their work at a critical hour or even fatality was very real. The Home Affairs Minister was struck down with COVID-19 early in the pandemic and the UK Prime Minister was on a ventilator and facing the very real prospect of dying of COVID-19.

The parliament was suspended from sitting for a time and cabinet and others meetings were unable to be held face to face, as occurred with businesses and the public more generally.

As prime minister I considered it necessary to put in place safeguards, redundancies and contingencies to ensure the continuity and effective operation of government during this crisis period, which extended for the full period of my term.

To ensure oversight, the government, with the support of the opposition, established a concurrent public Senate inquiry into the management of COVID that effectively ran for the duration of my term as prime minister.

In addition I took the precaution of being given authority to administer various departments of state should the need arise due to incapacity of a minister or in the national interest. This was done in relation to departments where ministers were vested with specific powers under their legislation that were not subject to oversight by cabinet, including significant financial authorities.

Given the significant nature of many of these powers I considered this to be a prudent and responsible action as prime minister.

It is not uncommon for multiple ministers to be sworn to administer the same department. However, given that such additional ministers were in a more junior position in the relevant departments, and would not be familiar with all the details of the pandemic response, I considered it appropriate that the redundancy be put in place at a higher level within the government and not at a more junior level.

The major department for which this was considered was the Health Department, given the extensive powers afforded to the minister by the Biosecurity Act. This was put in place on March 14, 2020. The Department of Finance was added on March 30, 2020.

As an added administrative precaution, as a ‘belts and braces’ approach, the Departments of Treasury and Home Affairs were added some time after in May 2021. I did not consider it was likely that it would be necessary to exercise powers in these areas, but the future was very difficult to predict during the pandemic. As events demonstrated with the resurgence of COVID-19 in the second half of 2021, we could never take certainty for granted. In hindsight these arrangements were unnecessary and until seeking advice from the Department of Prime Minister and Cabinet today, I had not recollected these arrangements having been put in place. There was a lot going on at the time.

Thankfully it was not necessary for me to trigger use of any of these powers. In the event that I would have to use such powers I would have done so disclosing the authority by which I was making such decisions. The authority was pre approved to ensure there would be no delay in being able to make decisions or take actions should the need arise.

The crisis was a highly dynamic environment and it was important to plan ahead and take what precautions could lawfully be put in place to ensure I could act, as prime minister, if needed.

It is important to note that throughout this time ministers in all departments, where I was provided with authority to act, exercised full control of their departments and portfolios without intervention. Ministerial briefs were not copied to me as prime minister in a co-minister capacity, as this was not the nature of the arrangement. These arrangements were there as a ‘break glass in case of emergency’ safeguard. I also did not wish ministers to be second guessing themselves or for there to be the appearance to be a right of appeal or any diminishing of their authority to exercise their responsibilities, as this was not the intention of putting these arrangements in place. I simply wanted them to get on with their job, which they did admirably and I am grateful for their service.

The decision in relation to the Department of Industry, Energy and Resources was undertaken in April 2021 for separate reasons. This was the consequence of my decision to consider the issues of the PEP11 license directly. Under the legislation the decision is not taken by cabinet, but unilaterally by a minister with authority to administer that department. I sought and was provided with the authority to administer matters in relation to this department and considered this issue observing all the necessary advice and issues pertaining to the matter before making a decision, without prejudice, which I announced publicly. Once having been given the authority to consider this matter I advised the minister of my intention to do so and proceeded to consider the matter. I retained full confidence in Minister Pitt who I was pleased to have serve in my ministry. I believe I made the right decision in the national interest. This was the only matter I involved myself directly with in this or any other department.

The use of the powers by a prime minister to exercise authority to administer departments has clearly caused concern. I regret this, but acted in good faith in a crisis.

I used such powers on one occasion only. I did not seek to interfere with ministers in the conduct of their portfolio as there were no circumstances that warranted their use, except in the case of the Department of Industry, Science, Energy and Resources which I have explained.

The pandemic has been a difficult time for Australia, although we have performed better than almost any other developed country in the world. There is no guide book in these circumstances and there is much commentary that will be offered in hindsight from the comfort of relatively calmer conditions. It is not surprising that some of this commentary will have a partisan or other motive, but that’s politics. In a democracy it is a positive thing for these issues to be discussed and for experience to inform future decisions and I hope my statement will help inform that process.

I have endeavoured to set out the context and reasoning for the decisions I took as prime minister in a highly unusual time. I did so in good faith, seeking to exercise my responsibilities as prime minister which exceeded those of any other member of the government, or parliament. For any offence to my colleagues I apologise. I led an outstanding team who did an excellent job and provided me great service and loyalty as ministers.