Penny Wong and Mathias Cormann clash over energy bill support for welfare recipients

Updated

Finance Minister Mathias Cormann has been grilled over the Government's last-minute decision to extend an energy assistance payment to people on the unemployment benefit.

Key points: Penny Wong and Mathias Cormann have clashed over Newstart welfare payments

Labor wants to know why the Budget did not include Newstart recipients receiving an energy supplement

Senator Cormann prevented bureaucrats from answering some questions, insisting he would respond later

The one-off payment was included in Tuesday's Budget for millions of welfare recipients, but not those on the Newstart allowance.

The following morning, the Government backed down and included Newstart recipients, arguing it would secure the bill's passage through Parliament this week.

Senator Cormann told Labor's Penny Wong the decision was made during a meeting with the Treasurer and Prime Minister on Tuesday night, after the Budget was delivered.

"I mean all of these processes went through the ordinary processes of decision making," he said.

"Oh come on, there's nothing ordinary about changing the Budget on budget day," Senator Wong responded.

"Well let me tell you we are in the circumstance where this Budget week is the final week before an election," Senator Cormann replied.

Treasurer Josh Frydenberg revealed the energy supplement would be extended to Newstart recipients in an interview with the ABC's AM program.

Debate in Senate Estimates centred around a letter from the Prime Minister to the Social Services Minister authorising the $80-million extension of the government payment.

Senator Wong repeatedly tried to ask public servants if that authorisation was sent before or after the radio interview.

But Senator Cormann prevented bureaucrats from answering, insisting he would take the question on notice and respond later when he had the full details.

A senior official within Prime Minister and Cabinet told the Senate he learned about the policy change from a colleague who heard the radio interview.

Senator Cormann told the Senate he was involved in two discussions with Mr Frydenberg and Prime Minister Scott Morrison on Tuesday, the day the Budget was released, about the energy supplement and Newstart recipients.

He said he could not recall if anyone else was present at the meetings, including departmental notetakers, in the Cabinet suite and did not reveal the times of the meetings.

Senator Cormann said he was unsure when Social Services Minister Paul Fletcher wrote to his department to notify it of the policy change.

He insisted the funding for the energy supplement had been left out of the Budget while the Government decided how it could "facilitate speedy passage through the Parliament".

The Senate hearing continues.

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Topics: government-and-politics, federal-government, electricity-energy-and-utilities, welfare, budget, australia

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