The Selection of Discretionary Grants

ANAO Report No.10 2014–15 Administration of the Biodiversity Fund Program 80

5.13 The

brief did not, however, include information that would have informed the Minister that the Investing in Tasmania’s Native Forests round had been open at the time the proposal was submitted for consideration, and that the assessment of 29 applications lodged under this round was currently underway.

5.14 On

26 June 2013, the Minister approved the proposed funding of 1.2 million for the Tasmanian Forest Landscape Restoration Project. Following negotiations, the funding agreement between Environment Tasmania Inc. and the department was executed on 24 July 2013. The project was also publicly announced on that date in a press release from the Minister. 114 Equity and transparency in the funding decision

5.15 The

Environment Tasmania Inc. project was funded at the same time as the competitive, merit‐based assessment process was being undertaken for the Investing in Tasmania’s Native Forests round. Ultimately, this funding round was terminated by the new Government as funding agreements had not been executed and this matter is further examined in Chapter 6.

5.16 Several

applicants in the Investing in Tasmania’s Native Forests funding round have informed the ANAO that, in their view, the funding of a project outside of the established competitive, merit‐based process did not represent a transparent, accountable and equitable process. The department subsequently informed the ANAO that the option of a discretionary grant was pursued as ‘the timing for this grant was necessary to meet pressing government priorities and it was therefore assessed as a one‐offad‐hoc grant’.

5.17 While

organisations are entitled to seek funding directly from Ministers and it is within the authority of Ministers to approve the awarding of funding, the negative reaction from some stakeholders to this decision underlines why merit ‐based approaches are commonly adopted by government for grant programs. Alternatively, where discretionary grants proposals or program elements are provided for, concerns about equity of access can be alleviated if the basis on which decisions will be made is able to be set out in the grant guidelines. This is particularly the case when grants are available on both a discretionary and merit basis for the same program. 114 The Hon. Mark Butler MP, Minister for the Environment, Heritage and Water, press release, 24 July 2013, available from: http:www.environment.gov.auministerarchivebutler 2013mr20130724a.html [accessed 24 November 2014]. ‐ ‐ ‐ ‐ ‐ ANAO Report No.10 2014–15 Administration of the Biodiversity Fund Program 81 Bush Blitz II

5.18 On

5 August 2013, Environment signed a four‐year funding agreement to