City Services Minister Tara Cheyne said communication from bureaucrats about the tender for The Green Shed was regrettable and not the standard the ACT government expects.
The Green Shed lost a government contract to operate recycling and resell depots at Mugga Lane and in Mitchell. The contract will be taken over by Vinnies.
The loss of the contract prompted community anger and thousands signed a petition calling for The Green Shed to be saved.
Ms Cheyne said the communication about the process was not up to standard, including communication about the tender to her office.
"I note the communication from [Transport Canberra and City Services] was regrettable and that they have apologised," she said.
"Communication about the process and the decision to the community, to my office and to The Green Shed was not the standard the ACT government or the community expects.
"I acknowledged the government could certainly have done better in explaining this process, not just to those interested in submitting a proposal but to the entire community."
Ms Cheyne spoke to the Legislative Assembly after Greens backbencher Jo Clay tabled a petition to prevent the closure of The Green Shed, which has been signed by more than 7000 people. The facility itself will not close, but it will instead be operated by Vinnies.
The Green Shed posted a letter they received from Procurement ACT, which said the organisation had not "been selected as the preferred respondent".
The letter said Vinnies had been chosen and if the organisation wanted a briefing on the decision, it would need to respond requesting this within five business days.
Ms Cheyne said she had been told all staff at The Green Shed would be employed if they wanted to transition across to Vinnies. Staff at The Green Shed were worried about their jobs.
The City Services Minister told the Assembly staff who worked at The Green Shed's retail stores in Civic, which are not included in the tender and will be shutting, would be offered the opportunity to apply to work at Vinnies' shopfronts.
"We're not going to say all staff are guaranteed to a job because they may not want to transition so it will be up to staff they will have that autonomy," Ms Cheyne said.
Ms Cheyne was unable to provide a definitive answer on whether staff would be paid the same amount but she said the Vinnies agreement generally paid above the award wage.
Ms Cheyne said the government would not interfere in the procurement.
"Any suggestions there should be political interference in a procurement process certainly raises some questions," Ms Cheyne said.
ACT Senator David Pocock is holding a public meeting on Tuesday afternoon about The Green Shed because his office had so many inquiries about its future.
The public meeting is on Tuesday from 1.30pm to 2.30pm at the Canberra Bridge Club in Duff Place, Deakin.
Senator Pocock said representatives from the St Vincent de Paul Society Canberra/Goulburn would be on hand to answer questions.
Vinnies recently won the contract to operate the two reuseable facilities at the Mugga Lane and Mitchell tips, upsetting supporters and staff of The Green Shed who had held the contract for more than a decade but was not successful in re-tendering. Vinnies takes over on May 1.
"After all the calls and emails I've received I'll be holding a community meeting [Tuesday] about the Green Shed," Senator Pocock posted on social media.
"This is obviously squarely a territory issue but after the ACT govt said they won't be holding any public meeting about it I've decided to hold one and pass on the feedback. We're gathering as much information as we can about the transition to Vinnies and will pass this on to people."
Senator Pocock told The Canberra Times his office had tried to get information about the contract and The Green Shed from the office of Chief Minister Andrew Barr and Ms Cheyne but had not been able to get a response.
However, Ms Cheyne's and Senator Pocock's offices have been in regular contact since the decision was made public last week, both offices have confirmed.
The Tuesday meeting is an information session to get all the questions answered.
"When the government is not able to front up and provide information, all kinds of rumours and misinformation start to circulate," Senator Pocock said.
He said The Green Shed staff in particular wanted to be told first-hand what was happening with their positions in the contract change, rather than through the media.
"I know some staff have rung a dozen MLA offices and the phone wasn't answered," Senator Pocock said.
