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The Senate Select Committee on Administration of Sports Grants Select Committee on Administration of Sports Grants Final report March 2021 © Commonwealth of Australia 2021 ISBN 978-1-76093-198-8 (Printed Version) ISBN 978-1-76093-198-8 (HTML Version) This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivs 4.0 International License. The details of this licence are available on the Creative Commons website: https://creativecommons.org/licenses/by-nc-nd/4.0/. Printed by the Senate Printing Unit, Parliament House, Canberra Committee Members Chair Senator Anthony Chisholm ALP, QLD Deputy Chair Senator Janet Rice AG, VIC Members Senator the Hon Eric Abetz LP, TAS Senator the Hon Matthew Canavan NATS, QLD Senator Nita Green ALP, QLD Substitute Members Senator Tim Ayres ALP, NSW (for Senator Green on 23 July 2020) Senator Katy Gallagher ALP, ACT (for Senator Green on 13 and 27 February 2020) Senator Marielle Smith ALP, SA (for Senator Green on 10 March 2020) Participating Members Senator Raff Ciccone ALP, VIC Senator the Hon Don Farrell ALP, SA Senator Katy Gallagher ALP, ACT Senator Glenn Sterle ALP, WA iii Secretariat Jeanette Radcliffe, Committee Secretary Apolline Kohen, Acting Committee Secretary Anna Hough, Principal Research Officer Sina Hutton, Principal Research Officer Joy McCann, Senior Research Officer Kathleen McGarry, Senior Research Officer Carol Stewart, Administrative Officer Stephanie Oberman, Administrative Officer PO Box 6100 Parliament House Canberra ACT 2600 Phone: 02 6277 3886 Fax: 02 6277 5829 E-mail: [email protected] Internet: www.aph.gov.au/select_sportsgrants iv Table of Contents Committee Members ........................................................................................................................ iii Terms of Reference ............................................................................................................................ ix Abbreviations ..................................................................................................................................... xi List of Recommendations .............................................................................................................. xiii Chapter 1—Introduction .................................................................................................................... 1 Background and context for this inquiry .......................................................................................... 1 Response to CSIG program ..................................................................................................... 1 Public controversy .................................................................................................................... 2 Minister for Sport's resignation .............................................................................................. 4 Senate inquiry ....................................................................................................................................... 5 Conduct of the inquiry ........................................................................................................................ 5 Interim report ....................................................................................................................................... 6 Joint Committee of Public Accounts and Audit report .................................................................. 7 Structure of the report ......................................................................................................................... 7 Notes on terminology and references ............................................................................................... 8 Acknowledgements ............................................................................................................................. 8 Chapter 2—Impact of grant decisions for sporting communities .............................................. 9 How decisions were made .................................................................................................................. 9 The assessment process ............................................................................................................ 9 Minister to approve grants .................................................................................................... 10 Funding decisions for Rounds 1, 2 and 3 ............................................................................ 10 Distribution bias ...................................................................................................................... 12 Decisions based on 'other factors' ......................................................................................... 12 Impact on local sporting communities ............................................................................................ 13 Reliance on volunteer labour ................................................................................................ 13 Planning and fundraising efforts .......................................................................................... 14 Impact for state and local grants .......................................................................................... 15 Poor communication with unsuccessful applicants ......................................................... 16 Failure to explain ministerial decisions ............................................................................... 17 Providing a safe and inclusive environment ...................................................................... 19 v The need for financial redress .......................................................................................................... 20 Committee view ................................................................................................................................. 21 Failure in process .................................................................................................................... 21 Impact on sporting communities .......................................................................................... 22 The need for funding .............................................................................................................. 23 Chapter 3—Governance failures .................................................................................................... 25 Program design ................................................................................................................................. 25 Insufficient analysis ............................................................................................................... 25 Better use of data ..................................................................................................................... 26 Lack of consultation ............................................................................................................... 26 Was the CSIG program unconstitutional? ........................................................................... 27 Minister’s legal authority .................................................................................................................. 28 Purported sources of legal authority .................................................................................. 28 Program guidelines and the minister’s approval right ..................................................... 29 Legal advice regarding minister's approval role ................................................................ 30 Parliamentary appropriations ............................................................................................... 32 Problems with decision-making ..................................................................................................... 33 Deviation from the merit-based assessment process ........................................................ 33 ‘Emerging priorities’ ............................................................................................................... 34 Reasons for decisions and record-keeping ......................................................................... 35 Communicating risk to the minister ............................................................................................... 36 Role of the board ................................................................................................................................ 38 Other governance issues ................................................................................................................... 39 Committee view ................................................................................................................................. 40 Fundamental problems with the program design ............................................................. 40 The minister’s legal authority ............................................................................................... 41 Poor governance within Sport Australia ............................................................................. 42 Role of the Department of Health......................................................................................... 43 Chapter 4—Political interference ................................................................................................... 45 Were political objectives the primary driver of grant decisions? ...............................................
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