A STATE Treasury proposal to set up a new grants structure to replace the Tasmanian Community Fund, established from the proceeds of the sale of the Trust Bank, and the Government’s Community Support Levy funded from gambling revenue, threatens the independence of a body that has distributed more than $40 million to Tasmanian charities and community groups.

The Treasurer Michael Aird has released a Treasury discussion paper and is seeking community input for the development of a replacement grants program.

However, while the paper promises ‘operational independence’ for the new funding body, it says it decisions on grants must confirm to Government policy.

Tasmanian Chamber of Commerce and Industry executive chairman Andrew Scobie said this was contrary to the intention of the Board of the former Trust Bank and the then Bacon Government when the bank was sold.

Mr Scobie said the Tasmanian Community Fund was established as an independent and apolitical body to provide grants to worthwhile community bodies and projects.

He said in essence it ensured that the value of the Trust Bank, which was not owned by the Government, but by its customers the people of Tasmania, would be returned to the people in perpetuity.

“Now it appears the Government is intent on taking over the Fund and distributing grants according to the policies of the government of the day.

“This is a dangerous move and one that should ring loud warning bells for community organisations.

“While the intentions today may be benign, future grants could be made in the interests of one political party or the other.”

Mr Scobie said it was not small change.

“I understand the Tasmanian Community Fund has allocated grants of more than $40 million to nearly 1,100 Tasmanian organisations over the past eight years, so all these and like bodies should be very nervous.

“The Treasury proposal would end forever the full independence and the ability of the Board to make grant decisions on merit and without fear or favour.”

Mr Scobie said he was confident the TCF continued to meet the community and public objectives determined when it was established through the sale of the Trust Bank almost a decade ago.

“The full independence of the TCF Board is actually enshrined in legislation, as is its entitlement to annual funding independent of the Budget.

“The TCF is Tasmania’s largest and most successful philanthropic body and is delivering outstanding benefits to the Tasmanian community.

“Its independence enables it to receive a wide range of input, including political when it considers its funding and its extensive reporting ensures that it is transparent and open to public scrutiny.”

Mr Scobie said he could see why Treasury would want to get its hands on the Fund, but the community needed to be aware of the dangers and tell the Government that a takeover was not on.