On behalf of the Tasmanian Greens, today I have written to Auditor-General Martin Thompson to request he undertake a review of the Rockliff Government’s mining grants program, the Exploration Drilling Grant Initiative.
An analysis of information received under a recent RTI request has heightened our longstanding concerns with the program and prompted our request for a full review.
Key findings of our analysis include:
- The same companies are repeatedly receiving grants – 58% of grants awarded since the program commenced have gone to just 10 companies
- About one in every six dollars paid out under the program so far has gone to just one company
- 57% of grants were never acquitted
- Companies are frequently being awarded multiple grants for exploration in the same area – even when they did not previously acquit grants for work in that area
- Less than one in five grant applications have been refused
- Yunnan Tin, the world’s largest tin producing company, has been awarded five grants under the program
- Eligibility guidelines have been expanded in a manner that contradicts the original stated purpose of the grant program
Examining the information we’ve obtained, there are clear issues with how EDGI is being run. On the surface the scheme is not being managed appropriately, and Tasmanians deserve to know why.
It’s not normal for a grant program to repeatedly award grants to the same recipients – even the same projects. It’s also a worry to see this program have such low rates of applications being refused, while it has exceptionally high rates of grants that are not being acquitted.
There are some pretty big questions over whether this program is a good use of taxpayer funds. The world’s biggest tin producing company, who are making profits of hundreds of millions of dollars a year, does not need grants from the Tasmanian public purse.
Based on the evidence we’ve seen, it looks like the EDGI program is less about delivering on a real need, and more about political PR for the Rockliff Government.
It seems this is all about demonstrating to voters they are an active supporter of the mining industry – even if that support is possibly an unnecessary or ineffective use of taxpayer money.
Given the range of issues we’ve identified, we hope the Auditor-General will take a close look at the EDGI program. In the face of a rapidly worsening budget situation, it’s more crucial than ever that all public funds are being spent appropriately.
More information is available upon request.
