FED: Howard rejects Kennett bid to redirect gas crisis funds

AAP General News (Australia)
02-12-1999
FED: Howard rejects Kennett bid to redirect gas crisis funds

MELBOURNE, Feb 12 AAP - Prime Minister John Howard today rejected a bid by Victorian
Premier Jeff Kennett to use nearly half the federal funding earmarked for gas crisis victims
to improve the state's gas system.

"He wants it for something way beyond what was originally offered," Mr Howard told radio
3AW.

He said Mr Kennett would not be permitted to use the funds in the way he wanted, although
"the money will be made available for the originally designated purpose".

That would include the immediate reimbursement of the Salvation Army for any expenses it
incurred, he said.

"We laid down certain criteria at the time and those criteria will be fully honoured.

"I think what Mr Kennett has said (is), 'Well, while we're on the subject, would you give
us a few tens of millions for this or that'."

Mr Kennett's request had been related to expenditure on energy infrastructure, Mr Howard
said.

"It wasn't completely in another area but it was clearly beyond the guidelines of emergency
relief."

A Senate estimates committee heard on Wednesday that Mr Kennett had asked Mr Howard for
approval to use about $42.7 million of the unspent funds, due to be paid back to the
Commonwealth in March, to upgrade the gas system.

The committee heard that only $7.3 million of the $100 million fund, announced on the eve
of the October 3 election, had been spent.

AAP imc/er/wjf/de

KEYWORD: GAS HOWARD

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