The Indigenous affairs minister has dismissed complaints that the federal government’s Indigenous grants scheme is confusing or chaotic, but said changes were already being made.

The Indigenous Advancement Strategy (IAS) has sparked outrage in the Indigenous services sector after numerous organisations were knocked back or offered reduced funding for expanded services. The release of a list of successful recipients last week did little to ease tension because it revealed they included government departments and sporting organisations.

On Tuesday the minister, Nigel Scullion, told ABC radio in Darwin the process was not chaotic or confusing, and said those descriptors were “themes” of protest.



“Someone has sat down and decided what we’re going to do is run with the theme that there’s confusion and there’s chaos,” he said. “There’s no confusion. There’s no chaos.”

He said only “a few people” were unhappy about the IAS results.

On Monday Scullion met protesters in Alice Springs and engaged in heated debate with people unhappy about how funding was distributed.

The IAS consolidated more than 150 Indigenous government programs and policies into five broad categories. The funding – reduced by more than $500m in the last federal budget – was then reallocated through the grant scheme.



In the days following the announcement of $860m in grant offers, Guardian Australia spoke to numerous organisations that had been denied funding for programs, or had been offered a grant smaller than their previous budget in return for expanded programs. Others were unaware of their application status beyond a phone call saying they had or had not been successful.

Scullion said the IAS was fundamentally about delivering services to first Australians, and dismissed reports that most of the money had gone to non-Indigenous organisations.

“It’s a perception, I don’t understand what they base that [claim] on,” he said on Monday.

“They have absolutely no idea about the applications, as I do, and I can tell you unashamedly I was ensuring that we benefit Indigenous organisations. We actually have a new line column: ‘How many Indigenous people do you employ?’ [for the] first time ever.”

He said he was taking those matters into consideration because Indigenous organisations and employees were better at delivering services to Indigenous communities.

“Invariably they’re better connected, they understand the issues around community, and there’s a whole range of benefits.”

Asked if there would be extra funding available for organisations that were overlooked, Scullion replied: “No one has been overlooked.” He said his department was talking to people and organisations about extra information needed or querying why they didn’t apply, adding that some lost out because they applied in a pool of organisations which was knocked back.

But he conceded changes were happening “as I speak”.

It was revealed last week that at least two organisations had their initial grant offer revised. Barkly Regional Council had been knocked back in its request for funding for a sport and recreation youth diversionary program, but the money was reinstated for 12 months following negotiations. Scullion’s office told Guardian Australia the money had been sourced from “unallocated funds within the [IAS]” and did not affect any other service.

Scullion hit back at calls for him to be sacked, noting there was no media release from previously outspoken groups when their funding was reinstated.

The Greens and Labor have launched a Senate inquiry into the IAS, due to report by 18 June.

Labor urged service providers to make submissions, and labelled the IAS “shambolic”.

Labor MPs Shayne Neumann and Warren Snowdon said on Tuesday: “More than nine months after the disastrous process began, Indigenous service providers are still facing ongoing uncertainty about the viability and sustainability of their services in the wake of massive funding reductions.

“The chaotic and confusing application process further compounded the issues, leaving many organisations unsure if they can keep their doors open.”