Gunnedah Council Deputy Mayor Kate McGrath appeared before the NSW Upper House’s Public Accountability and Works Committee’s Inquiry into the Integrity, efficacy, and value for money of the Local Small Commitments Allocation process to answer questions regarding her role in selecting projects for the distribution of funds during the 2023 State election.
McGrath, who was running for the seat of Tamworth at time, nominated several local organisations for funding under the Local Small Commitments Allocation, an election promise by the then-opposition Labor party to “provide grants up to the value of $400,000 in 2023-24 in each of the 93 NSW electorates” should Labor take government.
The inquiry is to determine if there were any conflicts of interest selecting which organisations receive the grants.
Organisations were nominated by Labor candidates before the election.
All electorates, regardless of who took the seat, would have access to the Local Small Commitments Allocations, if Labor took government, regardless of who took the seat. Tamworth was retained by Kevin Anderson but projects like the Quirindi Silo Light Show and Barraba Community Newspaper were still approved for LCSA grants, which have been approved.
“The small community organisations that were overwhelmingly the recipients of these grants all across the state deserve to be supported,” McGrath told the New England Times after her appearance.
“They do exceptional work and play a vital role in our community.
“If nothing else, I hope this inquiry shines a light on the difference a relatively small level of investment can make in our community.
The Committee is chaired by Central Coast Greens MP Abigail Boyd.
In her opening statement, McGrath said she understood there were “concerns about the administrative aspects” of LSCA.
“While I have no objection to ensuring there is an appropriate level of scrutiny regarding the expenditure of public funds, I wholeheartedly support the fundamental intent of the local commitments to ensure a consistent minimum level of investment in every electorate in NSW, regardless of whether or not the Labor candidate was successful in winning the seat,” McGrath said.
Committee Member Chris Rath, Shadow Minister for State, asked “Who approved those projects, and did you have to fill in or complete a conflict of interest declaration in the lead up to the election”
McGrath replied, “I could not tell you with any certainty which individual approved the projects that we nominated and, as for the conflict of interest declarations that, to my recollection, occurred after the election.”
The two possible grant recipients McGrath declared a conflict of interest in were Oxley Community Transport Services, based in Tamworth, and the Gunnedah Urban Landcare Group.
It was determined that there was “no personal benefit” to McGrath should the grant go through for the Transport Services, and that there was a low probity risk.
However, it was determined that McGrath, as Gunnedah Shire Council’s delegate to the Landcare group, did represent a conflict of interest, despite McGrath holding no voting rights in the group or receiving any remuneration.
The Landcare grant did not proceed, making the town McGrath the Deputy Mayor of the only LGA in the Tamworth Electorate to not get funding.
The beneficiaries for the Tamworth electorate were confirmed on March 19th, 2023, six days before the election, and on November 9th NSW Labor called for COI forms after forming government.
It was the timeline of events that drew the attention of fellow Gunnedah politician, the Nationals’ Sarah Mitchell.
“Prior to the election, was there ever any questions asked from the Labour Party head office or anyone about whether you might have had a potential conflict of interest with that organisation – was that discussed at all, or did that not happen until after the election?”
“To the best of my recollection, I don’t have specific records about that, but it was certainly made clear to us,” McGrath said.
“You know, in discussion around the types of projects that would be suitable, you know that they should be obviously not for profit, and that they should obviously be organisations which were not directly affiliated with it.”
Talking to the New England Times, McGrath said that the “fundamental principles of the program are good, and should become the norm in every election.
“Particularly in safe seats like ours, there is always a level fear when there’s a change of government, and measures like (the LSCA) provide a level of equity and more equal distribution of funding across the entire state, with every single community receives a level of investment from the State government – as they should.
McGrath said that the she’d to see the LSCA continue no matter the government.,
“What I would like to see moving forward is both sides of the aisle moving forward on initiatives like this, instead of Labor’s innovative approach being torn down.”
“I’m not ever going to object to the appropriate level of scrutiny over the distribution of public funds.
“My hope is that after this inquiry that these recommendations simply provide a better way of delivering initiatives such as these,” McGrath said.
Don’t miss any of the important stories from around the region. Subscribe to our email list.