Labor attacks regional grants program that delivered 96% of funding to Coalition-held seats

Labor has taken aim at a regional grants program that delivered 96% of its $272m of funding to Coalition-held electorates, despite projects being selected through an open, competitive process.

An analysis of the successful projects reveals that $261m was spent on the 16 projects in Coalition-held electorates and just $11m on the one in Lingiari.

Answers to questions on notice from the infrastructure department reveal the program delivered tens of millions to at least three projects with business cases lacking a cost-benefit ratio, including $10m to the Yarra Ranges trails in Casey, on the outskirts of Melbourne.

The same project was also funded under Victorian government schemes, the growing suburbs fund and the eastern metropolitan partnership.

According to the department, all regional growth fund projects were approved by Michael McCormack, then deputy prime minister and regional development minister. Its answers note a ministerial panel also played a role selecting projects in consultation with cabinet.

In the South Australian electorate of Barker, the Mount Gambier sport and recreation centre received $15m from the federal government.

The regional growth fund is one of a string of programs cancelled by the Albanese Labor government and replaced by $1bn over three years for competitive grants in the growing regions, regional precincts and partnerships programs.

These included the controversial $1.15bn building better regions fund, which the audit office found resulted in Coalition seats receiving twice as many grants as Labor electorates.

But two new Labor programs, announced in the October budget, will be delivered through closed grants: $1bn over five years for the priority community infrastructure program and $350m over five years to deliver small-scale community, sport and infrastructure projects.

On Friday the audit committee will hold a hearing as part of its ongoing inquiry into grants administration.