Scott Morrison has left the door open to expanding a controversial sports grants scheme to clubs that missed out.
The Prime Minister insisted the scandal-plagued grants scheme engulfing his government broke no rules, but said guidelines were another matter.
Mr Morrison denied the $100 million scheme was used for political benefit despite a damning auditor-general’s report finding marginal and targeted seats were favoured before last year’s election.
He didn’t rule out funding rejected projects, many of which ranked well above Sport Australia’s threshold in the agency’s assessments.
“I will work with the treasurer to see how we can better support even more projects in the future,” the prime minister told the National Press Club in Canberra on Wednesday.
Former sports minister Bridget McKenzie is under pressure to resign over the scandal, with the head of the Prime Minister’s department investigating if ministerial rules were broken.
“As the Auditor-General found, the rules were followed. Guidelines are separate issues,” Mr Morrison said.
The prime minister was asked if it was wrong to use public money for political benefit.
“That’s not why I did it and that’s not why the government did it,” he said.
Hundreds of applications met the agency’s threshold but were denied funding after ministerial intervention.
Senator McKenzie, who is the Nationals’ deputy leader, has refused to resign but party room colleagues and the prime minister aren’t guaranteeing her future.
Mr Morrison defended politicians’ right to overrule advice from government agencies like Sport Australia.
“We’re part of our community. We know what’s happening in our community. We’re in touch with our community,” he said.
Opposition Leader Anthony Albanese said it was a scandal of massive proportions.
“Every day that Bridget McKenzie stays as a cabinet minister, it undermines faith in our democracy,” he told reporters in Melbourne.
“Anyone who looks at this knows that this is just a complete rort.”
Deputy Labor leader Richard Marles said leaving the door open to funding more clubs was the Prime Minister’s attempt to avoid responsibility for the issue.
Nationals frontbencher Darren Chester – a potential cabinet replacement for Senator McKenzie if she is axed – refused to publicly defend his fellow Victorian.
A roller derby club in Mr Chester’s Gippsland electorate did not receive government funding, despite being ranked 98 out of 100 on the scale of most worthy recipients.
“The greatest deficit we face right now in Australian politics has nothing to do with the budget, it’s a deficit in the trust between us and the public we represent,” he told ABC radio.
Nationals leader Michael McCormack is waiting to see the outcome of Department of Prime Minister and Cabinet secretary Philip Gaetjens’ investigation.
Sport Australia warned Senator McKenzie’s office about politicising the grants scheme in March last year, just ahead of the May election.
Mr Gaetjens is also scrutinising a $36,000 grant Senator McKenzie awarded to a Victorian shooting club to which she belonged.
-AAP
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