Prime Minister Tony Abbott and senior ministers Warren Truss and George Brandis approved Tourism Minister Andrew Robb's share in three Sydney restaurants – one of which has subsequently been promoted by Tourism Australia – as in line with the ministerial code of conduct.
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And that approval, by the governance committee of Cabinet after the last election, came after the secretary of the Department of Prime Minister and Cabinet, Ian Watt, had also reviewed Mr Robb's ownership disclosure in his register of members' interests.
But Labor tourism spokesman Anthony Albanese seized on a Fairfax Media report that the Boathouse Palm Beach, in which Mr Robb owns a half stake through private company Ram Consultancy, was one of about 800 restaurants being promoted as part of a $40 million, government-funded "Restaurant Australia" campaign targeting 17 major international markets.
An angry Mr Robb accused the ALP of mud-slinging, arguing that he "fully disclosed the extent of my interest and my involvement in the Boathouse cafes when I was given my current responsibilities 12 months ago".
"As such, the only relevant issue here is whether I have sought to influence in any way or at any time the approach of Tourism Australia towards this business," he said. "The answer to that question is an emphatic 'no'.
"As for the member for Grayndler [Mr Albanese], who has spent the last 12 months talking down tourism, I've done the opposite, I've been promoting all our programs, including this one overseas."
But Mr Albanese said the minister had effectively conceded in Parliament that "public money is being used to promote his private business interests".
Mr Robb has promoted the website on trade missions overseas and will do so again when he leads a 300-strong business delegation to India in January that will in part showcase the Restaurant Australia campaign.
"When asked about this in question time today, Mr Robb initially denied the allegations, before confirming that Tourism Australia, for which he has ministerial responsibility, is promoting on its website a restaurant in which he has a financial interest," Mr Albanese said. "Mr Robb also confirmed he had promoted the website while travelling overseas on trade missions.
"I call on Mr Robb to explain to the Parliament how this does not represent a conflict of interest."
Mr Albanese said Mr Robb might have breached section 2.14 of Mr Abbott's statement of ministerial standards, which state that where a conflict of interest might exist a divestment of assets should occur, as well as section 2.17 and 2.18, which cover the interests of immediate family.
Mr Robb's daughter Pip and her husband, Andrew Goldsmith, own the other half stake in the restaurants and run them.
A spokeswoman for the Prime Minister said Mr Watt and then the governance committee had reviewed and approved Mr Robb's stake in the restaurants.
"Mr Robb and Mrs Robb are like many parents who put money into a new business run by a child to help it get up and running", she said, adding that Mr Robb's shareholding, through Ram Consultancy, had been disclosed appropriately.
"Decisions regarding the listing of the restaurant on a tourism website are not made by the Minister but, instead, Tourism Australia, which is a separate statutory authority."
A spokesman for Tourism Australia said the Boathouse's featuring on the government-funded website was not being reviewed.
"The Boathouse was one of 1800 Australian businesses which responded to our industry 'rally cry' to sign up to this campaign," he said. "They shouldn't be penalised for taking up a free opportunity to showcase themselves and their food and wine offering to the world."
