Partially True

Rating: 6.0/10

Coalition
C0209

The Claim

“Gave $345,000 to News Corp to build a spelling bee website, discarding any pretence of propriety or fairness by skipping the usual parliamentary checks and tender process, instead just choosing to hand the excessive amount of cash to a company whose primary industry is neither website building nor education.”
Original Source: Matthew Davis

Original Sources Provided

FACTUAL VERIFICATION

The grant amount is verified: The Morrison Government did allocate $345,000 to News Corp for a "Prime Minister's Spelling Bee" website project [1].

The parliamentary scrutiny claim is substantially accurate: The funding was made under delegated legislation, which does not require full parliamentary approval before being implemented [1]. Delegated legislation (also called regulations) "does not have to pass Parliament but can be overturned by a successful disallowance motion within 15 sitting days of it being made" [1]. The Committee for Delegated Legislation, chaired by former Liberal senator Concetta Fierravanti-Wells, documented this spending of "more than $300 million in Government spending implemented without getting laws passed in Parliament across just six weeks in December and January" [1].

The tender process claim requires nuance: The explanatory statement for the grant stated that "the grant would be directly negotiated and agreed with News Corp" and that "an independent review would not be available for the grant" [1]. This does indicate a direct negotiation rather than a competitive tender process.

About News Corp's expertise: News Corp is Australia's largest newspaper publisher and media company. While its primary industry is media/publishing rather than website development or education specifically, it does operate websites and digital products. The spelling bee was described as being "integrated into the Kids News website" [1], suggesting use of existing News Corp digital infrastructure.

Missing Context

The claim omits several important contextual factors:

1. Cost-sharing arrangement: The explanatory statement specified that "Government funding will cover the cost of the technology build and News Corp will bear the costs of ongoing operation, support and promotion of the Spelling Bee" [1]. This means News Corp was contributing operational costs, not simply receiving a cash grant with no commitment.

2. Integration with existing platform: The project was designed to integrate with the "Kids News website for easy access in all Year Three to Eight Australian classrooms in early 2020" [1]. This suggests the funding was leveraging existing News Corp digital infrastructure and audience reach.

3. Delegated legislation context: While delegated legislation bypasses full parliamentary scrutiny, this is a standard, legal mechanism used hundreds of times per year across all government [1]. It's not a secret process—it can be challenged via disallowance motions within 15 sitting days [1]. This is a systemic feature of Australian government, not unique to this grant.

4. Committee oversight actually worked: The very fact that this spending was exposed and scrutinized occurred because the Committee for Delegated Legislation (with expanded powers as of November 2019) was doing its job [1]. The Fierravanti-Wells committee successfully drew public attention to this spending, demonstrating that the oversight mechanism functioned.

Source Credibility Assessment

The ABC article is highly credible: ABC News is Australia's national public broadcaster, generally regarded as having strong editorial standards and factual accuracy [1]. The article was written by political reporter Jack Snape. The information is backed by official government documents (explanatory statements) and Senate committee findings. The headline's characterization ("dodges parliamentary scrutiny") reflects editorial interpretation, but the factual claims are documented.

No credibility concerns with the source itself: Unlike some opinion pieces or advocacy journalism, this is factual reporting by a mainstream news organization citing official documents.

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Labor Comparison

Search conducted: "Labor government delegated legislation grants controversy Australia" / "Labor government grants direct negotiation without tender"

Finding: Delegated legislation is a long-standing feature of Australian government used across all administrations. The ABC article notes that Senator Fierravanti-Wells' committee reforms "were successful in the Senate even though they were opposed by the Government" in November 2019, suggesting the issue predates the Morrison government [1].

The broader issue isn't partisan—it's about the scope and use of delegated legislation itself. The article documents this as a systemic practice: "hundreds of these laws are made each year" [1] across all governments. Labor governments also use delegated legislation; this isn't unique to the Coalition.

The main difference in 2020 was that a reformed Delegated Legislation Committee with stronger powers (supported by cross-party Senate members despite government opposition) was actively documenting and scrutinizing such spending, which is why this $345,000 grant became public.

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Balanced Perspective

The criticisms are valid but incomplete:

The claim correctly identifies that:

  • Direct negotiation with News Corp bypassed competitive tendering [1]
  • Delegated legislation allowed spending without full parliamentary vote [1]
  • This represents reduced transparency compared to bills passed through Parliament [1]

However, the full context includes:

  1. Legitimacy of the process: While delegated legislation does bypass parliament, it's a legal, established mechanism. The government wasn't acting secretly or illegally—explanatory statements are made public and subject to disallowance [1]. The Fierravanti-Wells Committee demonstrates that oversight exists.

  2. Policy rationale: The spelling bee project had a stated educational objective—creating an accessible learning tool for Australian schoolchildren in years 3-8 [1]. This isn't inherently unreasonable, even if News Corp was the chosen partner.

  3. News Corp's actual role: While News Corp's primary business is media/publishing, it does operate digital platforms and websites. Using the company's "Kids News" platform to host a spelling bee is not absurd—it's leveraging existing infrastructure for a legitimate educational purpose [1].

  4. Risk to News Corp: The grant funded the technology build, but News Corp was responsible for ongoing operational, support and promotional costs [1]. This represents real financial commitment from News Corp beyond the government grant.

  5. Systemic issue, not unique malfeasance: Delegated legislation and direct grants are standard government practices. The article frames this as problematic, but this is how governments routinely fund projects quickly—not through lengthy tender and parliamentary processes. Anne Twomey, a law professor from University of Sydney, acknowledged the committee's work improved "transparency and governmental accountability," but the article doesn't suggest the grant itself was corrupt or improper [1].

  6. Accountability did occur: The Fierravanti-Wells Committee specifically flagged this spending and made it public. The system worked—this wasn't hidden, it was scrutinized [1].

On the "excessive" claim: Whether $345,000 is excessive for building a spelling bee website with educational platform integration is debatable. No cost-benefit analysis is provided in available sources to verify if this is above-market rates or appropriate for the scope.

PARTIALLY TRUE

6.0

out of 10

The core facts are accurate: the Coalition did grant $345,000 to News Corp for a spelling bee website via delegated legislation, bypassing traditional parliamentary scrutiny and competitive tendering. However, the claim's framing ("discarding any pretence of propriety or fairness") is hyperbolic and misleading.

The grant was made through legitimate legal mechanisms (delegated legislation) that are standard across all governments. The decision to directly negotiate with News Corp rather than tender can be questioned, but wasn't improper. The claim omits that News Corp contributed ongoing operational costs and that the project integrated with existing educational platforms [1].

The most defensible criticism is about transparency—delegated legislation does reduce parliament's role—but even this is mitigated by the fact that the Committee for Delegated Legislation successfully scrutinized and publicized the spending [1].

📚 SOURCES & CITATIONS (1)

  1. 1
    abc.net.au

    abc.net.au

    The Federal Government spent $311 million in six weeks over summer and it avoided scrutiny of Parliament until it landed on the desk of a former Liberal frontbencher.

    Abc Net

Rating Scale Methodology

1-3: FALSE

Factually incorrect or malicious fabrication.

4-6: PARTIAL

Some truth but context is missing or skewed.

7-9: MOSTLY TRUE

Minor technicalities or phrasing issues.

10: ACCURATE

Perfectly verified and contextually fair.

Methodology: Ratings are determined through cross-referencing official government records, independent fact-checking organizations, and primary source documents.