Cost of former prime minister’s trip included $37,000 compensation payment to a local hotel which lost business when the government cancelled bookings

This article is more than 4 years old

This article is more than 4 years old

Tony Abbott’s five-day trip to the Torres Strait as prime minister cost more than $216,000, including a $37,000 compensation payment to a local hotel which lost business when the government cancelled bookings.

The August trip was fulfilling a pledge by Abbott to spend one week a year working from a remote Indigenous community.

Tony Abbott's tour of the Torres Strait Islands and Cape York – in pictures Read more

The Department of Prime Minister and Cabinet told a Senate estimates hearing on Friday that it spent $154,250 on moving Abbott and delegates to conduct their work in the Torres Strait, and $24,327 on a day trip to Mer island for a ceremonial event at the grave of land rights campaigner Eddie Mabo.

The committee also heard the government paid $37,000 to the operators of the Jardine hotel on Thursday island, who had claimed the government had cancelled a number of rooms at the last minute.

Caroline Edwards, first assistant secretary at the department, said the trip had been a success in allowing the attendees to see the challenges and benefits of living and working in a remote place.

“There were lots of issues which came out of that which are now front and centre for us in terms of policy, and not only for us but other departments,” she said.

“All of the feedback we’ve had from people involved in those engagements, before, after and during, were very excited to have senior ministers in attendance.”

Edwards said it was her understanding no formal booking had been made at the Jardine hotel, but it was clearly the case that there was an expectation [by the hotel managers] that a large amount of rooms would be used in the weeks leading up to the prime minister’s visit.”

Steve Mills, the hotel general manager, told Guardian Australia at the time the cost of the bookings was $53,000 and he’d been offered $30,000 by the government.

“I’ve been stiffed for a heck of a lot of money. If I’m not going to see it I want some sparks,” he said.

Edwards declined to comment on how the department became aware of the issue, which was first reported by the Torres News, but said as soon as they became aware they “allocated a senior officer to work with the proprietor of the company to come to a reasonable resolution”.

An amount of $37,000 was paid to the hotel to make up for lost business, which Edwards said was “a lot less” than the accommodation would have cost but was reasonable to make up for any inconvenience and lost business.

The prime minister and staff stayed on a “very small” defence base, and alternative accommodation was required for other delegates and visitors.

Edwards was also questioned about media access to the trip, after complaints from local media they had to make their own way to events as opposed to invited media, but she said those decisions were made by the prime minister’s office, not her department.