NSW premier orders grants review as it’s revealed $20m school solar program went mostly to Coalition seats

The New South Wales premier, Dominic Perrottet, has ordered a review of grants funding in the state but denied the move was an admission that two grants at the centre of an anti-corruption investigation were improperly awarded.

On Wednesday, Perrottet announced he had ordered the department of premier and cabinet to conduct a review of grant procedures to “ensure the fairness and probity of current grant systems”.

But the state opposition says it is concerned the review may not go far enough. Labor said it would adopt recommendations made by the Independent Commission Against Corruption (Icac) to improve transparency over grant funding, as well as introducing rules requiring ministers to explain when they diverged from department advice.

Perrottet’s announcement followed evidence by his predecessor, Gladys Berejiklian, to the state’s anti-corruption watchdog that the government “threw money at seats to keep them” and grants were made to help win votes.

This week, Icac concluded 11 days of public hearings into Berejiklian’s conduct, a probe which centred around two multi-million dollar grants in the seat held by her then-secret boyfriend, the Wagga Wagga MP Daryl Maguire.

The investigation heard evidence that Maguire had consistently lobbied for the grants over several years, and that they were ultimately signed off by Berejiklian despite concerns from within the public sector.

The former premier used her appearance before Icac to defend the grants, saying they had been awarded in part to shore up support for the Coalition government following the loss of the Orange by-election to the Shooters, Fishers and Farmers party.

Since her resignation, Perrottet has been critical of the practice of pork barrelling in government, saying he disagreed with the “concept”. On Wednesday, he said he had asked both the department and the productivity commissioner, Peter Achterstraat, to conduct a review of grant funding.

“Taxpayers expect the distribution of funds will be fair, I share that expectation,” Perrottet said.

“Every dollar from NSW taxpayers is important. I am committed to making sure grant programs are fair, robust and follow best practice when those dollars are put to work in the community.”

But during a press conference, Perrottet denied the review was an admission proper process had not been followed in relation to the two Wagga Wagga grants, saying it was “important there is public confidence in relation to the expenditure of taxpayer funds”.

Perrottet also said the report, due in April, may not lead to any concrete changes in grant funding processes.

“These guidelines haven’t been looked at since 2010, I think it is incredibly important we look at it. Perhaps nothing will change, it’s really a matter for the government to look at a better way of doing things,” he said.

The opposition seized on those comments, criticising Perrottet for refusing to commit to an overhaul of grant funding. On Wednesday, NSW Labor said in government it would require ministers to explain “in writing and provide reasons” if they went against a department recommendation on grant funding.

The party would also introduce recommendations made by Icac last year as part of its submission to an inquiry into the integrity of grant funding.

The inquiry, prompted by the government’s $252m Stronger Communities Fund, found money was overwhelmingly spent in Coalition-held seats and led to an admission from Berejiklian that it did amount to pork barrelling but was “not an illegal practice”.

In its submission to the inquiry, Icac recommended changes to the government’s 2010 “good practice guide” to include obligations for ministers to “act ethically and in accordance with general probity principals such as transparency, accountability and fairness”.

“The growing culture of pork-barrelling by this Liberal National government must be broken,” Labor leader Chris Minns said.

Perrottet’s announcement came at the same time it was revealed more than 90% of schools selected as part of a $20m pilot to fund solar power systems were in Coalition-held seats.

The Daily Telegraph reported 92% of the 25 schools selected as part of the pilot program came from Coalition seats, including two in the ultra-marginal seat of Penrith in western Sydney which is held by deputy Liberal party leader Stuart Ayres.

Three of the schools were from Dubbo, which is held by the Nationals with a margin of just over 2%. Only two of the 25 schools were from non-government seats, including one held by the rival Shooters, Fishers and Farmers Party.

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The NSW opposition leader Chris Minns accused the government of prioritising “their own interests ahead of what’s best for the people of this state”.

“Many schools who are eligible and deserving of the schools renewables grant will be rightly asking why they have not been successful. Dominic Perrottet owes them an explanation,” he said.

But the government has defended the grants. The education minister, Sarah Mitchell, said the schools chosen for the pilot program were selected by the department of education based on areas where the “electricity grid is constrained” – and that the program had been targeted at regional areas.

Her office released correspondence which it said showed the schools chosen for the pilot had been recommended by the department.

An email chain from June shows the minister’s office had requested the department provide it with the list of schools, and that almost all of the schools selected came from its initial recommendation. Two of the recommended schools were not selected because one was in recess and the other did not require the project.

“They are located in areas where the electricity grid is constrained and, in order to deliver commitments made through the cooler classrooms program, require an electrical upgrade which would have involved a costly upgrade to electrical infrastructure,” a spokesperson for the minister said.