KITCHEN NIGHTMARE - Funding refused for training facility

Staff at the Factory Community Centre in Waterloo said they spent almost 12 months preparing a grant application for funding under the Regional Partnerships Program, for which Ms Plibersek provided a letter of support.

The application was for $53,000 to build a kitchen training facility for teaching hospitality skills to disadvantaged locals.

The process involved a development application and hiring an architect, which cost the centre $7000.

The Factory manager, Patrick Russell, said the organisation was devastated by the sudden rejection. "We heard about this in the media, after the program was scrapped in the budget," he said.

"We were given from the outset a lot of confidence that this would be worth the trouble."

Mr Russell said the rejection letter came from the parliamentary secretary for regional development, Gary Gray, and was vaguely worded.

The letter stated the rejection was because of "the Government's strong commitment to high standards of public administration, accountability and fiscal responsibility".

"This almost implies there is something unsound with our application," Mr Russell said.

A spokesperson for Mr Gray said a new program would be taking the place of the Regional Partnerships Program.

He blamed the previous government for misleading organisations applying for funding.

"The former government made irresponsible promises to community groups that it had no intention of keeping," he said.

Ms Plibersek said the program was closed because of mismanagement found by the National Audit Office.

Photo: Phil Rogers - Patrick Russell (far right) and others at the Factory Community Centre are disappointed their grant application was refused.