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National

Tasmanian MP Nic Street admits to giving 'incorrect answers' to parliament over controversial election grants

Tasmanian Community Services Minister Nic Street says he will correct the record after giving "incorrect answers" to state parliament about the government's controversial 2021 taxpayer-funded election grants scheme.

Mr Street told a budget estimates hearing earlier this year that all commitments under the government's Local Communities Facilities Funds were in last year's budget and "listed, funded, and approved by parliament".

But new Right to Information documents showed a total of 111 projects worth $2.47 million did not go through parliament and were instead funded through the Treasurer's Reserve, a process that avoided parliamentary scrutiny.

In a statement on Thursday afternoon, Mr Street said he would "never knowingly mislead parliament".

"I provided incorrect answers to questions from [Greens MP Rosalie Woodruff] in the estimates committee earlier this year, based on the advice I had at the time," he said.

"I will make a statement to the house at the earliest opportunity next week to correct the record."

The Liberal Party has previously been accused of electoral bribery over the grants scheme, and transparency experts have called for an inquiry over concerns taxpayer funding worth more than $15 million may have been misappropriated.

The funding has been categorised as a "power grab" by Centre of Public Integrity director Geoffrey Watson SC, and "a more extreme version" of the federal sports rorts saga.

Funding 'lawful and appropriate', minister says

But Mr Street defended both the $15 million scheme and asking new Governor Barbara Baker to sign off on the expenditure using laws designed for unforeseen, urgent spending needed to ensure "efficient financial administration".

"Taking commitments to the election and giving people the right to vote on them is transparent and fair, and a fundamental part of democracy," he said.

"We said during our election campaign that we would deliver these projects and we did precisely that and as soon as possible."

Mr Street said the funding was "lawful and appropriate" and complied fully with the state's financial management act.

"The important thing is every one of these commitments directly benefits Tasmanians right across the state, and we make no apologies for that," he said.

Greens leader Cassy O'Connor welcomed Mr Street's admission.

"It's good to see him acknowledging that the information he gave to parliament was untrue when he was presented with the evidence, and we look forward to seeing him come into parliament on Tuesday to correct the record," she said.

"The question from here though is what will Minister Street, and indeed the Premier, do to make sure that something like this doesn't happen again, and to prevent this kind of rorting of public money at elections in the future."

Questions over grants

The ABC has previously revealed that one grant announced by Liberal candidate Madeleine Ogilvie during the 2021 Tasmanian state election campaign funnelled $150,000 into the rowing club where her daughter was a member.

Another was announced by Mr Street for the Lindisfarne Country Women's Association branch during last April's election campaign — the same branch his family member was the treasurer of.

And a $165,000 grant was awarded to St Vincent de Paul, the workplace of then-Liberal candidate Lara Alexander, for new vans.

Ms Alexander also signed off on the receipt of one $75,000 grant as president of the Rotary Club of South Launceston, which was delivered before she was elected on a recount.

In September, questions were raised in state parliament over a $400,000 grant for the Bracknell Hall, because Speaker Mark Shelton and some of his family members are on its committee.

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