The regional development minister, Catherine King, has conceded that one of Labor’s key regional funds to decarbonise the economy will need to be topped up after her department labelled a $400m investment “modest”, documents reveal.
Documents obtained under freedom of information suggest the Albanese government plans to expand the regional precincts and partnerships program (RPPP), announced in October 2022 to replace more generous Coalition schemes that Labor claimed amounted to pork-barrelling.
The release comes as the independent MP for Indi, Helen Haines, introduces a private member’s bill that would require decisions regarding government grants to follow a merit-based selection process and create a parliamentary committee for greater oversight.
In the October 2022 budget Labor announced it would cancel the sixth round of the Coalition’s building better regions fund and close down the community development grant program due to criticisms of partisan allocation of funding.
King announced a $1bn investment including $600m for the growing regions fund, through an “open, competitive grants process”, and $400m for the RPPP.
RPPP projects are assessed against criteria but it is a “non-competitive” program, meaning it remains open at all times and projects are not assessed in rounds against other applicants.
On 14 December 2022, King’s department wrote a brief asking for her to seek authority from the prime minister for the programs by the “critical date” of 16 December.
“The funding for the [RPPP] is modest and will require further funding in the future to meet the objectives of the program,” the department advised.
The brief cited the fact that “it is likely stakeholders will have high expectations about the amount of funding available under the programs”.
It also warned that urban stakeholders will probably feel “excluded”, after which $150m was allocated to the urban precincts and partnership program.
On 12 January 2023, King signed off on the brief and wrote to Anthony Albanese seeking approval for the two new programs.
The RPPP “will facilitate collaboration and joint investment to help regions move towards net-zero emissions, a decarbonised economy and sustained regional growth”, King wrote.
“It is my view that making available $400m over three years is appropriate to start to facilitate the Australian government’s contribution to precinct partnerships across regions, regional cities and rural communities.
“I expect this program will require additional funding in the future.”
Kind wrote that an expert panel will be “involved in the assessment process” of the RPPP.
Neither fund has yet delivered any grants. Applications for the growing regions fund closed in mid-January. The first tranche of RPPP grants is also expected to be announced in early 2024.
In the October 2022 budget Labor also slashed $6.4bn from the energy security and regional development plan and $1.8bn from the regional accelerator program, funding that was secured by the Nationals in return for their support of the Morrison government’s net zero emissions goal.
The shadow regional development minister, Bridget McKenzie, said: “These documents confirm internally what we have known for some time – that the Albanese government has torn important regional programs to shreds.”
McKenzie noted the government had extended eligibility to regional universities “which have other sources of funding, to participate, further diluting opportunities for regional councils and community groups”.
Haines told reporters in Canberra that “rural and regional Australia are in desperate need of greater investment” but recognised the RPPP is a “significant regional fund”.
Haines praised Labor for legislating a national anti-corruption commission but said its “report card is not fully populated”. “We need to see how they disburse public funds when it comes to these major grants.”
A spokesperson for King said the government had “made initial contributions to these new programs in line with responsible budget management”.
The spokesperson noted growing regions grants are assessed by a multi-party parliamentary panel, while the RPPP goes to an expert panel chosen from the urban policy forum before a final decision by the minister.
