January 29, 2020. Labor Leader Anthony Albanese press conference in Melbourne. Albanese attacks Scott Morrison's leadership on the bushfire crisis, criticising the Prime Minister's address to the National Press Club. Albanese announces that Labor will hold a senate inquiry into the sports rorts of Brigite McKenzie. (AAP Video/Alex Murray)

Albanese attacks Morrison's lack of leadership on sports roots and the bushfire crisis - will establish senate inquiry

Prime Minister Scott Morrison has been grilled on his government’s sport rorts scandal at the National Press Club in Canberra.

Mr Morrison’s speech focused on emergency management and climate change, but questions about the sport grants program were inevitable.

Frontbencher Bridget McKenzie has been under pressure to resign in the wake of an Auditor-General report, which concluded the $100 million program was used to pour taxpayer money into marginal seats targeted by the Coalition at last year’s election.

The audit found that in the third round of the program, 73 per cent of projects given funding were not recommended by the independent body Sport Australia.

Questions have also been asked about how involved Mr Morrison’s own office was in the scheme.

Channel 7’s Mark Riley got the first question this afternoon, and he broached that issue.

“I was here reporting during Labor’s sport rorts scandal, the Ros Kelly Affair was a shocker. But this is one of those rare things, a bit like The Godfather II, where the sequel is bigger and badder than the original,” Riley said.

“I mean, really? The recommendations of an independent, expert authority overlooked for political expediency. Colour-coded seats of marginality.

“First, can you say categorically that your office had nothing to do with this? No involvement in the construction of this rort?

“And secondly, what will you do as Prime Minister to ensure the integrity of the expenditure of taxpayers’ funds not just in this scheme, but in so many others across government where there is broad ministerial discretion, to ensure that money goes to … the most worthwhile (projects) on merit and need, and not what best secures a marginal seat for the government?”

Mr Morrison quipped to Press Club president Sabra Lane: “I’m glad to see the one question rule is off to a good start, Sabra.

“This is a serious matter. I’m taking it seriously. That’s why we’re acting on the recommendations of the Auditor-General’s report.”

The Prime Minister mentioned he had referred the matter to his department’s secretary Phil Gaetjens to determine whether Ms McKenzie violated the ministerial standards. That report is due to land on his desk this week.

He then took issue with Riley’s reference to Labor’s sport rorts scandal, which forced the resignation of Ros Kelly.

“You have been around this place for a long time, Mark, and one of the things that you’ll recall is that Ros Kelly and indeed (former Labor minister) Catherine King were both involved in programs that gave money to ineligible projects. The Auditor-General found that did not occur (with the sports grants). Did not occur,” Mr Morrison said.

“So I think there’s quite a significant comparison there between those two.

“I think history is important. I think facts are important and I think it’s important to note that the Auditor-General did not find there were ineligible projects that were funded under this scheme, nor did he say rules had been broken. There was a ministerial authority to make decisions in this matter and that’s what was exercised.”

The Prime Minister went on to say a number of “hardworking local communities” had benefited from the grants program and all the projects were “worthy”.

“There will also always be criticisms that are made about the decisions that are taken. What matters is on the ground is whether the projects are making a difference,” Mr Morrison said.

Riley briefly interjected to clarify whether the Prime Minister’s office was involved.

“All we did was provide information based on the representations made to us. As every Prime Minister has always done,” Mr Morrison said.

The Guardian’sSarah Martin got the next question.

“Can I just clarify your answer from Mark there. Are you suggesting that there was nothing wrong as a matter of principle in using public funds for your own private political interests?” Martin asked.

“Well, I just reject the premise of the question. That is not why we did it,” Mr Morrison replied.

“Why did you do it?” Martin followed up.

“To support local communities with the sporting infrastructure that they need to bond together, to be cohesive and ensure that girls didn’t have to change out the back of the shed. You can have an editorial on it, if you like, you’re welcome to that. That’s not why I or the government did it,” he said.

“As a matter of principle, do you accept that it is wrong to use public funds for your own private political benefit?” Martin asked.

“That is not what the government has done,” the Prime Minister said.

“I am asking as a matter of principle, if you accept that,” she repeated.

“It is — of course. That is like, do I believe the sun should rise tomorrow? Yes I do, and it will,” he said.

Next up was the ABC’s Andrew Probyn, who broke the story yesterday that Sport Australia had written to Ms McKenzie a month before the election was called last year to complain about political interference in the grant program.

“What do you say to the hundreds of community groups, not-for-profits, councils who spent a lot of time putting together their grant applications, and did so thinking that the process would be one that was going to be devised by merit, as opposed to political advantage?” Probyn asked.

“Andrew, I will put your editorial to one side, and your commentary on it. That is your view, and that is what you have put forward,” Mr Morrison said.

“What the government was doing was supporting local community infrastructure projects, all of which were eligible under the program, all of which will make a difference in the community, and there are always more.

“There are many, many worthy projects in this area, I agree with that. I will work with the Treasurer to see how we can better support even more projects in the future. On any grants program, however it is done, there will always be many applicants whose projects are very worthy and they’re unable to be accommodated by the budget we have set.

“We’re a government that manages public money carefully.”

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Mr Morrison’s Press Club appearance followed a week of new revelations in the sport rorts scandal.

On Monday, Sky News reported that staffers in Ms McKenzie’s office had raised concerns about the program in late 2018.

One former staffer said they raised “major” concerns about the administration of the program with Ms McKenzie’s then chief of staff.

They said the minister was exposed by the methodology being used to hand out the grants and it could turn into a scandal.

According to the whistleblower, Ms McKenzie’s chief of staff replied: “We have to do what the minister wants.”

“This is how the minister wants to do it, and we have to abide by that,” the staffer was told.

Yesterday, the ABC reported Sport Australia had written to Ms McKenzie a month before the election was called last year to complain about political interference in the program, saying its independence was being compromised.

It has also emerged that some of the highest-rated grant applications, according to Sport Australia’s process, were snubbed in favour of low-rated projects in key electorates.

Ms McKenzie has tried to fend off the criticism, saying all grants approved under the program were within the rules.

Earlier this afternoon, Mr Morrison used his speech to the Press Club to flag new powers for the federal government to take action in crises, such as the bushfires.

“The incredible skill and bravery of our state fire services have saved so many lives over this summer, so many homes, and I am just so full of admiration for all of their efforts and their leadership,” Mr Morrison said.

“To date though, the role of the Commonwealth in responding to natural disasters has been limited to responding to requests for assistance from state governments.

“Where, when and how the resources and capabilities of the federal government should be engaged is less clear.”

He said the fire crisis had tested the limits of how the federal government interacted with the states.

In response, he proposed three possible steps for the government to examine – changes that would allow the declaration of a national state of emergency, to let the federal government take the initiative on its own; looking at the legal interface with the states and territories; and an enhanced “national accountability” for natural disaster risk management, resilience and preparedness.

He also spoke at length defending the government’s record on climate change, stressing it was taking action “now”.