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Industry Minister Ed Husic has given the green light to a series of manufacturing grants, which were under review due to fears about the way they were announced by the Morrison government.
Key points:
- The review has green-lighted Morrison government grants after finding they were "independently assessed"
- Ed Husic says the review was necessary in light of the former government's track record on grants
- The Opposition claimed the review put tens of thousands of jobs at risk
Sixty-eight grants were announced under the $1.3 billion Modern Manufacturing Initiative (MMI) program between the start of March and May 17.
Labor was deeply critical of the timing of the spending blitz, which occurred just before and then during the election campaign, sparking concerns about the integrity of the grants.
The review revealed former prime minister Scott Morrison made himself the final decision-maker for some of the grants, which Mr Husic said was "in defiance of usual practice".
But an examination of the way successful companies were chosen found decisions were supported by an independent committee and the required grant opportunity guidelines.
The Industry Department has now begun the contracting process.
In a statement, Mr Husic defended ordering the review, which was one of his first acts in office.
"Unlike some programs under the former Liberal and National Government, the MMI grants were independently assessed."
Mr Morrison secretly held the powers of the industry portfolio, as well as four other ministries, when he announced 17 of the grants worth more than $800 million, however, he did not use his dual authority to do so.
Opposition claimed review put jobs at risk
News the grants have been confirmed and the contracting process is beginning is likely to be welcomed by the Opposition.
It had been critical of the length of the review, claiming tens of thousands of jobs were at risk.
"Businesses are relying on the continuity of these commitments to hire apprentices and make investment decisions," deputy Liberal leader and Shadow Industry Minister Sussan Ley said in a media release last month.
"We are talking about boosting sovereign manufacturing capability on everything from defence, to vaccination, to food security and construction.
"Make no mistake, if this uncertainty continues, job losses will follow and each one of them will be on Mr Albanese's head."
The Albanese government was also critical that unsuccessful companies who applied for the grants were not informed before the election.
It believes more of the grants should have been awarded earlier in the pandemic, given the scheme was launched as a recovery program.