The federal government handed a $2 million grant to a small trades training school chaired for a decade by senator Bob Day, the crossbencher whose business woes are a threat to Prime Minister Malcolm Turnbull's bid to resurrect the building industry watchdog.
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The one-off allocation, made without any competitive tender process, will let the vocational college in Adelaide's north trial Senator Day's pet project, a new apprenticeship system known as "student builders".
The program takes the financial burden for apprentices off employers in the construction sector by funding them as tertiary students.
According to a trove of government documents, Senator Day began lobbying government ministers in 2015 for $1.4 million to trial the program with 20 apprentices from North East Vocational College, where he is a current director and former chairman of 10 years.
Six months later, he was told in a letter from the then assistant minister for education and training, Luke Hartsuyker, that the college would receive $1.84 million - nearly $500,000 more than he asked for.
It was one of just three grants - all for $1.84 million - made in the first stage of the 'Apprentice Training - Alternative Delivery Pilots' scheme. The other two recipients were peak industry bodies Master Builders Australia and the National Electrical Communications Association.
Labor senator Doug Cameron, who has been pursuing the awarding of the grants, claimed they are tied to the enduring support of both groups and Senator Day for the government's plan to resurrect the building watchdog, the Australian Building and Construction Commission, a cause the Coalition justified the double dissolution election on.
"It's been a misuse of public money and I think it was designed to deliver to Bob Day and these two other groups for supporting the reintroduction of the ABCC," Senator Cameron said of the grants.
Senator Cameron is calling for full disclosure from the government around the process in which the then assistant education and training minister, Simon Birmingham, first met with Senator Day in June 2015 before creating an eight-member 'Apprenticeship Reform Advisory Group' in September last year.
One of its three tasks was to consider the merits of "piloting alternative models of apprenticeship delivery".
Senator Day's student builders pitch was included in the original brief by government to the advisory group, chaired by Liberal MP Craig Laundy and including former Liberal senator Joanna Lindgren.
Senator Day was then invited to address the group's second meeting on September 14 last year.
The advisory group's report makes general findings about examining new approaches but a document obtained under freedom of information laws suggests the group was not in favour of pilot programs like Senator Day's.
Under the heading 'Alternative Models', the appendice states "the Advisory Group would not recommend piloting new models, but would instead recommend validation and industry recognition of existing models."
Senator Birmingham - who is now the Education Minister - said on Monday the advisory group had been formed to "address the decline in apprenticeship numbers caused by Labor's cuts in trades training".
"We have been trying to tackle the drop off in apprenticeship numbers that Labor created when they were in government and it's clear that Doug Cameron is trying to throw mud to cover up his party's failures," he said.
The grants matter was raised at a recent Senate estimates hearing in which Senator Cameron asked Senator Birmingham if he knew of Senator Day's direct involvement in the college awarded money.
"I know that Senator Day knew of the North East Vocational College. I cannot say that I recall that he had any role in it, but that is not to say that I had not been told that at some stage," he replied.
Senator Cameron then countered: "Were any bills before Parliament that you were looking for his support for when this organisation he chaired received this funding in this really weird way?"
"There was certainly no discussion of deals, if that is what you are alluding to with votes or otherwise. There of course are always bills before Parliament. Your question there is well-crafted, but of course there are always bills before the Parliament and the government is always seeking support for those bills. Certainly there was no such discussion linking grants with support for anything," Senator Birmingham said.
In his statement on Monday, Senator Birmingham said: "As I said at Senate estimates, I met with various groups on their suggestions for fixing the damage Labor did to apprenticeships and suggested they present their ideas to the Apprenticeship Reform Advisory Group. I am delighted that a number of these pilots are now being developed and hope they provide valuable insights into how we can support more young Australians into apprenticeships in the future.
"Labor should know better than to attack a 10-year-old not-for-profit, community-run vocational college that has helped hundreds of apprentices just because Bob Day donated his time to them. In fact, the SA Labor state government has given NECV funding for their training under the Work Ready program and on Monday the state Labor Treasurer Tom Koutsantonis even toured their campus."
Senator Cameron said: "I can't accept the response I got from Simon Birmingham. It seems to me that he's worried and there's a cover up going on."
Senator Day did not return calls.
