The NT government paid almost $150,000 in fees to a lobbying firm to try to "influence" the Commonwealth government to support a gas-based manufacturing hub on Darwin Harbour, FOI documents show.
Key points:
- The NT government wants to transform Middle Arm into an industrial hub on Darwin Harbour
- Lobbying firm Dragoman was paid nearly $150,000 in consulting fees to help secure federal funding
- The NT government enlisted its services without a competitive tender
Dragoman Pty Ltd — which lists former ministers and industry executives among its network of experts — was engaged in 2021 as part of a strategy to secure funding for the Middle Arm Sustainable Development Precinct.
Within months, the Morrison government agreed to provide $1.5 billion towards the project, and the Albanese government later reaffirmed the funding commitment after it came to power in 2022.
The 1,500-hectare precinct is currently undergoing environmental assessment for a range of industries, including green hydrogen, minerals processing, low-emissions petrochemicals and carbon capture and storage.
The site has been hailed by the NT and federal governments as a "pathway towards a decarbonised economy", but environmentalists have criticised the planned use of gas at the proposed site.
The documents — released to the ABC under Freedom of Information laws — show Dragoman was awarded the contract for "political, policy and commercial intelligence support" in June 2021.
As part of its brief, the company was required to help NT officials set up meetings with federal ministers, agency CEOs and divisional heads ahead of the federal election in May 2022.
It was also tasked with developing talking points and presentation material, and to conduct post-meeting debriefs.
"The consultancy service is required to provide deep political insight, analysis and strategic guidance in the execution of an engagement strategy to influence the Commonwealth Government to support the establishment of gas-based manufacturing in the NT," the tender stated.
Company selected without competitive process
Dragoman was chosen for the consultancy under a select tender process, meaning no other companies were asked to apply.
Select tender processes are permitted under the government's rules where the government believe no other company can fulfil the scope, as was the case here.
As part of its pitch to the government, the company noted its "executives are steeped in industry and politics" and that it retains a global network of experts.
"These include former senior executives, cabinet ministers/secretaries, ambassadors, and executives with decades of experience working at the intersection of politics, public policy, and commerce," Dragoman stated.
It also promoted its ability to work with not only the federal government, but also the opposition and the public service bureaucracy "which provides us close insights into mindsets, outlooks, likely policy trajectory and opportunities".
"We will bring this to bear in the work for the [NT government's] Gas Taskforce," it said.
In justifying its decision to select Dragoman, a government official stated in the documents: "It was the only firm identified as having knowledge, skills and networks necessary to deliver the scope".
Dragoman was initially paid $95,975 for the consultancy, but the documents show the contract was varied in January 2022 to include an additional $49,500.
This was to allow the company to complete its engagement strategy with ministers and shadow ministers before the federal election.
The government's official contract website has not been updated to reflect the variation in funding given to the company.
The ABC asked the NT government about its decision to select Dragoman for the consultancy, but it did not respond by deadline.
Dragoman listed the NT government as its client on the federal Lobbyist Register in September, 2021.
Its managing director, Tom Harley, told the ABC: "We had a client brief which we fulfilled. Any questions about that should be directed to the client."
The NT Environment Centre urged the federal government to establish an inquiry into Middle Arm, which was previously recommended by a Senate committee.
"Far more scrutiny of this funding is needed," Environment Centre co-director Kirsty Howey said.
Earlier this month, the NT government announced five companies had been assigned land at the Middle Arm precinct.
They included gas company Tamboran, critical minerals companies Tivan and Avenira, renewable energy company TEH2 and Fortescue Future Industries (FFI).