Labor has criticised the former Coalition government’s Modern Manufacturing Initiative announcements, but will allow the projects to continue. 

Successful applications for the previous federal government’s $1.3 billion Modern Manufacturing Initiative were announced just before and during the recent election, with then-prime minister Scott Morrison and his ministers and MPs announcing between March 1 and May 17 - well into the traditional caretaker period - a series of funding agreements for resources technology, food and beverage, medical products, recycling and clean energy, defence and space.

Industry and Science Minister Ed Husic froze the scheme in June to assess whether it represented “value for money” and investigate claims that it was used for ‘pork-barrelling’ by providing things for the LNP to announce in regions it wanted votes from. 

But Mr Husic has now ordered his department to work with the successful bidders to begin the contracting process.

Still, he has some strong criticisms. 

“Rather than announcing these grants in a timely way at the height of the pandemic, when manufacturing was desperate for support, the Morrison government waited to the last possible moment close to an election,” Mr Husic said.

“It is completely unfair the Coalition government left so many companies wondering if they had been successful for months.

“They [the government] were more than happy to use announcements during the election campaign, but didn’t have the guts to be honest with those that missed out.

“The MMI program has delivered funding to outstanding companies and deserving projects, but there were plenty of grant applicants that were left hanging for months. That’s just not on, and no way to treat Australian businesses.”

The official government review looked at whether grant rules were followed, and at whether the advice of independent panels was followed, to see if the program “as a whole” delivered value for taxpayers.

Mr Husic says the grants were “all supported by an independent assessment committee and the processes adhered to the publicly available grant opportunity guidelines”.

“Despite the brazen attempt of the former Morrison government to politicise this grant process by delaying announcements until the election period, and failing to inform unsuccessful applicants, the government is now satisfied the companies have been awarded MMI funding according to the applicable grant process,” he said.

Former PM Scott Morrison had final say over $828 million in grants in the industry portfolio in the federal election because he had given himself secret authority over five ministries. 

There are now calls for specific projects to be reviewed because of the secrecy surrounding their approval. 

Reports say the Commonwealth Ombudsman has called for hundreds of Prime Minister and Cabinet appointments to be reviewed over concerns that officials were illegally appointed to multiple jobs.