July 30, 2010

Australian Labor government defends stimulus after allegations of political bias

CANBERRA, Australia

Australia’s Labor government of Prime Minister Julia Gillard faces a possible voter backlash against the findings of an independent audit into parts of its infrastructure stimulus program, less than a month out from the its Aug. 21 election.

The Australian National Audit Office report found the A$550 million community infrastructure program- designed to boost jobs and spending in local communities as part of a broader fiscal stimulus during the financial crisis favoured Labor electorates, reports Dow Jones Newswire.

The approval rate for projects in Labor-held seats was 42.1 per cent compared with 18.4 per cent for projects located in seats held by the main opposition Liberal-National coalition of center-right parties.

“The higher approval rates for projects in Australian Labor Party electorates compared to those in Coalition-held electorates was the case when considered in terms of political party representation in the House of Representatives, as well as when considered in terms of the pattern of applications,” the audit report found.

Shadow Minister for Finance and Debt Reduction Andrew Robb said the audit is a “damning indictment” of the government’s “pork barrelling and waste”.

“The government broke its own rules, funnelled money to Labor electorates and punished Australian families based on where they live,” Robb said in a statement.

But Infrastructure Minister Anthony Albanese defended the program.

“As well as leaving a lasting legacy in communities nationwide, this program kept thousands of local tradespeople working and many local businesses operating during the worst global recession in 75 years,” Albanese said.

“To ensure the program’s integrity, funding decisions were made based on departmental advice and following independent viability assessments of the proposals submitted,” he added.

The government argues its stimulus measures helped Australia sidestep a recession last year, while the conservative coalition argues much of the money was squandered on inefficient home insulation and school building programs.

DCN NEWS SERVICES

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