More Cash For Local Projects

The Sunday Age

Sunday November 16, 2008

JOSH GORDON, FEDERAL POLITICS

THE Federal Government will bring forward millions of dollars of spending earmarked for local councils and communities in its latest effort to fend off the global financial crisis.

After announcing a $10.4billion economic stimulus package and plans to spend billions of dollars worth of infrastructure money early, The Sunday Age believes the Government is also set to tap into a local communities fund.

The move is being viewed as a way of pouring even more cash into the fragile economy.

It follows a promise by Prime Minister Kevin Rudd to take "any further action necessary" to help shore up the economy, including investing the budget surplus.

In the May budget the Government promised to fund a local and regional community infrastructure program to help pay for local facilities such as playgrounds, halls, parks, libraries and swimming pools.

Although it was unclear how much money would be allocated - the funding was due to be announced in next year's budget - the fund was due to begin in 2009-10, replacing the former Howard government's regional partnerships program, which cost the budget about $70million a year.

A senior Government source said the new fund would now be set up as soon as possible and would cost the budget significantly more than $70million a year.

The issue will be discussed at a meeting of local councils and governments being hosted in Canberra on Tuesday by Mr Rudd.

More than 400 mayors are expected to attend the meeting. Federal Local Government Minister Anthony Albanese promised it would be a historic meeting "representing a new partnership between the Commonwealth and local councils".

The spending is viewed as a way of both delivering on a policy promise to spend more on local communities and pumping money into the economy, particularly in regional areas being squeezed by drought and falling commodity prices.

Mr Albanese also will announce $466million worth of grants to councils and shires across Australia, a second quarterly instalment from the Government's $1.9billion program to help local government fund roads, parks, pools, libraries, community centres, health and child-care services, and water and sewerage utilities.

"This Government also recognises that rural and regional communities are under particular financial pressure due to higher service delivery costs and difficulties raising revenue," Mr Albanese said.

© 2008 The Sunday Age

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