The Senate Finance and Public Administration References Committee Regional Partnerships and Sustainable Regions programs October 2005 © Commonwealth of Australia 2005 ISBN 0 642 71580 7 This document is prepared by the Senate Finance and Public Administration References Committee and printed by the Senate Printing Unit, Parliament House, Canberra. Members of the Committee for the inquiry Senator Michael Forshaw (Chair) ALP, NSW Senator David Johnston (Deputy Chair) LP, WA (replaced Senator Mitchell Fifield) Senator Guy Barnett LP, TAS (replaced Senator John Watson) Senator Carol Brown ALP, TAS Senator Andrew Murray AD, WA Senator Kerry O'Brien ALP, TAS (replaced Senator Claire Moore) Senator Kim Carr ALP, VIC (replaced Senator George Campbell 2 December 2004 to 22 June 2005; Senator Ursula Stephens 1 July 2005 to 17 August 2005, except on 14-15 July, 18-19 July 2005) Senator Ursula Stephens ALP, NSW (replaced Senator George Campbell 22 June 2005 to 13 September 2005) Participating members Senators Abetz, Bartlett, Bishop, Boswell, Brandis, Bob Brown, Carr, Chapman, Colbeck, Conroy, Coonan, Crossin, Eggleston, Evans, Faulkner, Ferguson, Ferris, Fielding, Fierravanti-Wells, Ludwig, Lundy, Sandy Macdonald, Mason, McGauran, McLucas, Milne, Parry, Payne, Ray, Sherry, Siewert, Stephens, Trood and Webber. Secretariat Alistair Sands Committee Secretary Terry Brown Principal Research Officer Lisa Fenn Acting Principal Research Officer Melinda Noble Principal Research Officer Sophie Power Principal Research Officer (August 2005) Alex Hodgson Executive Assistant Committee address Senate Finance and Public Administration Committee SG.60 Parliament House CANBERRA ACT 2600 Tel: 02 6277 3530 Fax: 02 6277 5809 Email: [email protected] Internet: http://www.aph.gov.au/senate_fpa iii iv TABLE OF CONTENTS Members of the Committee for the inquiry.................................................... iii Executive Summary ...........................................................................................ix Introduction......................................................................................................................ix Obstacles to the conduct of the inquiry............................................................................ix Regional Partnerships Program administration................................................................xi Case studies.....................................................................................................................xii The Sustainable Regions Program ................................................................................xvii Findings and recommendations................................................................................... xviii Recommendations ............................................................................................xxi List of Abbreviations ......................................................................................xxv Chapter 1 - Introduction ....................................................................................1 Terms of reference ............................................................................................................1 Background to the inquiry.................................................................................................2 Conduct of the inquiry ......................................................................................................3 Obstacles to the conduct of the inquiry.............................................................................4 Possible matters of privilege ...........................................................................................11 Structure of the report .....................................................................................................13 Chapter 2 - Regional Partnerships Program .................................................17 The RP program ..............................................................................................................17 The RP guidelines ...........................................................................................................18 Strategic Opportunities Notional Allocation (SONA) ....................................................20 Role of the minister.........................................................................................................24 Expenditure .....................................................................................................................25 Distribution of grants ......................................................................................................28 Administrative processes ................................................................................................31 Funding agreements ........................................................................................................35 TRAX..............................................................................................................................36 Audit and Review............................................................................................................37 Chapter 3 - The Area Consultative Committees............................................41 Overview.........................................................................................................................41 Structure and operation of the ACCs ..............................................................................42 Role and functions of the ACCs......................................................................................45 v Chapter 4 - Beaudesert Rail.............................................................................59 Background .....................................................................................................................59 Commonwealth Government involvement .....................................................................63 Financial viability............................................................................................................65 Chapter 5 - Tumbi Creek.................................................................................69 Introduction.....................................................................................................................69 Background .....................................................................................................................69 Evolution of the project proposal....................................................................................70 Issues relating to the administration of RPP ...................................................................82 Conclusions.....................................................................................................................95 Chapter 6 - The A2 Dairy Marketers project ................................................97 Background .....................................................................................................................97 A2DM's applications for SRP and RPP funding...........................................................100 Impact of the A2DM grant announcement....................................................................115 Conclusion.....................................................................................................................117 Chapter 7 - Primary Energy Pty Ltd ............................................................119 Introduction...................................................................................................................119 Background ...................................................................................................................119 Application....................................................................................................................119 Transfer to Regional Partnerships Program ..................................................................124 Project progress and outcomes......................................................................................133 Conclusion.....................................................................................................................135 Chapter 8 - RPP Grants in the Electoral Division of New England ..........137 Australian Equine and Livestock Centre.......................................................................137 The inducement allegations...........................................................................................144 The National Centre of Science, Information and Communication Technology, and Mathematics Education for Rural and Regional Australia............................................153 Grace Munro Aged Care Centre ...................................................................................159 Chapter 9 - The Sustainable Regions Program ...........................................163 The program ..................................................................................................................163 The SR guidelines .........................................................................................................166 Administrative processes ..............................................................................................167 Audit and review...........................................................................................................168 Sustainable Region Advisory Committees....................................................................168