Costs of tradie scheme blow out amid ongoing changes to rules, questions of fraud | NT Independent

Costs of tradie scheme blow out amid ongoing changes to rules, questions of fraud

by | Apr 20, 2020 | COVID-19, News, NT Politics | 0 comments

The Gunner Government’s ever-expanding Home Improvement Scheme will reportedly now balloon to over $100 million, raising questions over what fraud prevention controls are in place.

Reports over the weekend indicated that some companies were offering quotes over the phone and others were already price-gouging by doubling costs.

Chief Minister Michael Gunner said on Friday the program had been so popular that nearly 20,000 applications had been received and that the original budget of $30 million has now increased to $100 million.

That also meant changing the deadline from October to last Friday, leaving people scrambling to get applications in at the last minute and the public service scrambling to process those applications.

The NT Government does not currently have a whole-of-government approach to prevent fraud and questions to Mr Gunner’s office around what controls were in place to mitigate the fraud risks of the program were not answered.

The program has been changed constantly, on short notice, raising concerns over how well planned it was.

The Independent Commissioner Against Corruption’s office told the NT Independent in a statement that it is “working with the Northern Territory Government on measures to prevent and minimise the occurrence of improper conduct”.

No details were provided.

Territory Alliance leader Terry Mills called the scheme “unprepared and under-cooked” but desperately needed in the current economic climate.

“It is an absolute given that this scheme be fully audited and scrutinised,” he said.

“The response to the stimulus reveals the depth of the economic problem faced by small business in particular. This was underestimated. Because of enormous demand and raised expectations, the exercise may leave a bitter taste in the mouths of many who still face an uncertain future.”

The Home Improvement Scheme came under heavy criticism from Territorians who complained that the program was rushed, with rules changing on the fly, and saw the original deadline of October suddenly moved to last Friday before many could get quotes from local businesses.

Other changes have also caused stress and confusion for small trades businesses after the program was moved out from running for three months to 12 months, leaving many wondering how long it would take to be approved for funding. Businesses have also been concerned about material costs 12 months out from quotes.

Opposition CLP leader Lia Finocchiaro said the Gunner Government should have had the foresight to implement the program correctly the first time, without having to make constant changes with little notice.

“They changed the rules of the game and the goalposts for businesses,” she said. “It’s a classic example of not understanding the impact of their policy on the rollout of that program.

“It’s created a lot of uncertainty at a time in our community when what we need is absolute confidence … of what the rules of the game are.”

Mr Gunner said on radio Monday that the money to fund the $100 million scheme would come from the Territory’s already stretched budget that could be “repaired” later.

The Gunner Government have pledged $120 million in program spending to ease the economic impacts of the COVID-19 pandemic, as well as $180 million in foregone revenue collection made up of deferred or cancelled payroll tax, cuts to commercial power and water rates and rent relief.

Treasurer Nicole Manison passed legislation last month to draw down $300 million for emergency spending measures at her discretion. It’s believed the new inflated costs of the Home Improvement Scheme will not come from that pool of cash. It’s estimated the Treasurer still has $180 million yet to be spent from the emergency fund.

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