Fed: Tuckey says grant all above board

AAP General News (Australia)
02-10-2005
Fed: Tuckey says grant all above board

CANBERRA, Feb 10 AAP - Former roads minister Wilson Tuckey today described an email
suggesting a local council keep quiet about a grant as fair and honest advice.

Mr Tuckey said the email was suggesting the council not talk about reducing the proposed
grant sum until the grant process had passed from offer to contract stage.

He said it was he who put together this grant scheme and it operated in three stages
- the offer where the proposal was discussed; contract negotiation conducted exclusively
by the Department; and application of the grant, which the Commonwealth required to be
fully acquitted.

He said his understanding was that the Tumbi Creek grant had not gone beyond offer
stage and what Local Government Minister Jim Lloyd's adviser Graeme Hallett was saying
in his controversial email appeared to be sound.

"That, I thought, was good advice and fair and honest advice. While you are in the
offer stage, don't start reducing the amount of money. That is for the contract stage,"

Mr Tuckey told reporters.

"I think the email said, and I haven't seen it, `look you are in the offer stage and
at the offer stage you would be a bit silly to be cutting back on how much you have been
offered until you clearly know your circumstances'."

Labor yesterday accused Mr Lloyd of fraud after his office advised Wyong Shire Council
to keep quiet about no longer needing all of a $1.5 million federal grant to dredge the
silted-up Tumbi creek after heavy rains flushed it open naturally.

In his email, sent to some Wyong shire councillors and local MP Ken Ticehurst, Mr Hallett
suggested they keep their counsel about the rain because any changes would mean less money.

Mr Tuckey said as local member he would advise anyone coming to him saying they needed
less grant money to take it a bit carefully.

"An offer is an offer is an offer. It does not proceed any further until a contract
is negotiated with the department and of course adhered to if monies are paid," he said.

"Those stages, as far as I know, never happened. During the offer process there is
no conspiracy. As minister I would sign off on an offer and the rest of the process would
go on."

Liberal parliamentary secretary Warren Entsch said Mr Lloyd was an outstanding MP.

"I have known Jim since he has been in the parliament. I have absolutely no doubt whatsoever
with regard to his integrity and honesty and his commitment to his electorate and to his
portfolio," he said.

Liberal backbencher Andrew Robb said Mr Lloyd shouldn't resign.

"On the contrary. (Federal Labor leader) Kim Beazley has found himself up Tumbi Creek
without a paddle," he said.

"He has jumped out of the blocks far too early and made a lot of rash accusations.

He's the one who should be apologising."

AAP mb/cdh/sd

KEYWORD: REGIONAL LIBERALS

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