Nationals leader David Littleproud says he was "totally surprised" to hear the agriculture department was facing hundreds of millions of dollars in cost blowouts and has blamed a decision by the Labor government.
The federal Agriculture, Fisheries and Forestry Department has sacked contractors and cut costs in a bid to avoid a financial bailout.
Agriculture Minister Murray Watt pointed the finger at his predecessors for what he described as "another mess inherited from the former Coalition government".
"Previous years' budget papers show they repeatedly ran the department at a loss and failed to do the hard work of living within their means," Senator Watt said.
But the former agriculture minister, Nationals leader David Littleproud, has told the ABC he was unaware the department was hundreds of millions of dollars in debt.
"It wasn't a problem," Mr Littleproud said.
"[I was] totally surprised considering their financial performance statement for the end of financial year 21-22, just after the election, showed a net profit of over $88 million."
"I think in the machinery of government changes [with] agriculture being split up from environment, Murray Watt went to [the] expenditure review committee and lost out to Tanya Plibersek.
"Agriculture has taken the fall for the environment … ag and regional Australia is taking it in the neck."
Machinery of government, or MOG, changes occur when a prime minister decides to shift responsibilities within the public service.
In 2019, then-prime minister Scott Morrison decided to merge agriculture with water and environment.
When Labor was elected last year, Anthony Albanese reversed the move.
Senator Watt accused Mr Littleproud of dodging responsibility over the issue.
"It's sad that David Littleproud didn't take responsibility for this mess when he was minister, and still isn't taking responsibility now," he said.
All-staff email about financial situation
Late on Wednesday, department secretary Andrew Metcalfe issued an email to all staff referring to the department's "tight financial situation".
"Over the last few financial years, the cost of delivering our essential services and policy and program responsibilities has outstripped the revenue coming into the department.
"And costs associated with machinery of government changes have also had an impact," he wrote.
Mr Littleproud said biosecurity services should be adequately funded "but obviously, there's a lack of confidence in the community now", referring to reports about the department's financial woes.
He called on the government to address the budgetary shortfall as soon as possible.
"Be honest, fix it and make sure the Department of Agriculture can do the job they're tasked to do," he said.
Mr Littleproud also defended the department's use of contractors.
Ten years ago the department spent $5 million on contractors, but in 2022 it was almost $90 million.
Biosecurity remains a priority, Watt says
Senator Watt said the department would continue to ensure Australia's biosecurity was protected.
"I take issues regarding the department's financial position very seriously," Senator Watt told the ABC.
"Under a series of National Party ministers, consultancy and contractor fees blew out hundreds of millions of dollars and they ignored report after report that called for biosecurity fees and charges to be reviewed to meet the department's budgetary challenges.
"The result of this inaction is that the Department of Agriculture is now having to tighten its belt.
"The department is now taking responsible action to ensure we can continue to protect our biosecurity and maintain our status as a trading nation, while living within our means."
A spokesperson for the department has told the ABC the cost-cutting has occurred carefully to "reduce any impact on the department’s priorities, service levels or regulatory responsibilities".
