Nationals leader Michael McCormack has doubled down in support of a controversial sports grants program, despite it claiming the scalp of his deputy Bridget McKenzie.
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An investigation by the prime minister's department boss Phil Gaetjens has shot down suggestions the grants scheme was used to pork-barrel favourable seats ahead of the 2019 election.
That is despite the use of a colour-coded spreadsheet to designate marginal and target seats.
The Gaetjens report stands in stark contrast to one compiled by the Australian National Audit Office, which found the scheme was heavily skewed towards coalition-held and targeted seats.
Mr McCormack is choosing to believe the report compiled by the head of the Department of Prime Minister and Cabinet.
"You're always going to have sometimes when people look at things, they look at things in a different light," Mr McCormack told reporters in Canberra.
"I believe the PM&C report that was handed down, I believe that there was no bias."
Senator McKenzie resigned after Mr Gaetjens found she did not properly declare memberships of gun clubs that received grants when she was sport minister.
While she did not personally benefit, it was a breach of ministerial standards.
"She has paid the ultimate price," Mr McCormack told reporters.
"She has been a great servant for the National Party, but moreover, a great servant to regional Australians."
Labor says it will pursue the sports rorts scandal through an upper house inquiry, despite Senator McKenzie's resignation from cabinet.
Prime Minister Scott Morrison said Senator McKenzie - who had provided "great service" as minister, most recently in the agriculture portfolio - had done the right thing by resigning.
Opposition Leader Anthony Albanese said Senator McKenzie had been "thrown under a bus" in order for Mr Morrison to avoid any responsibility.
Labor wants to know more about the role of the prime minister's office in the grants scheme.
The Australian National Audit Office report found: "The evidence available to the ANAO is that representations were received across the three rounds both directly and indirectly, including through the prime minister's office."
"This needs a thorough investigation," Mr Albanese said.
Senator McKenzie said at no time did her membership of shooting sports clubs influence her decision making.
But she accepted not declaring them was in breach of ministerial standards.
She stood by the idea of ministers having discretion over grants, saying it was "important to our democratic process".
It is widely expected Queensland minister David Littleproud will take over as Nationals deputy leader.
Party members will meet in Canberra on Tuesday ahead of parliament resuming for the year.
A new community sports grants scheme is expected to be announced in the May budget, with the government promising greater transparency and accountability.
Australian Associated Press
