$1 billion vote of confidence in local councils
Further Commonwealth support for local
government in the Federal Budget will help deliver the targeted short-term
stimulus critical to national economic recovery and growth.
Australian Local Government Association
(ALGA) President David O’Loughlin commended Treasurer Josh Frydenberg’s
announcement of a further $1 billion investment in the local roads and
community infrastructure as a vote of confidence in local government’s ability
to drive local economic prosperity.
The massive boost in funding builds on the
$500 million Local Roads and Community and Road Infrastructure (LRCI) program
announced in May; with councils shortly to receive advice of their allocations
from the Government
He said the extra money for local
infrastructure, which will be provided to local governments in the calendar
year 2021, coupled with councils’ ability access to the $1.2 billion wage
subsidy program for trainees and apprentices, will enable them to green-light
more “shovel-ready” projects that will employ people in regions still reeling
from the combined effects of natural disasters and the coronavirus pandemic.
“When Covid-19 sent us into national
lockdown in March, ALGA called for fast, targeted short-term stimulus with
long-term benefits – directed through council – and here it is,” Mayor
O’Loughlin said.
“We reiterated local government’s proven
track record in delivering – together with the states and the Commonwealth –
significant programs such as Roads to Recovery, Bridges Renewal, Road Safety
Blackspots, and drought and bushfire relief initiatives.
“We said that financing shovel-ready
projects in local government areas would help ward off recession by stimulating
businesses and creating jobs across the country, delivering long-term benefits
to the nation in the process.”
“The local government sector is already
successfully delivering the first iteration of the LRCI stimulus program, and
it stands ready to do more.”
Mayor O’Loughlin also welcomed recent
announcements by Deputy Prime Minister Michael McCormack that added nearly $400
million to efforts to boost regional jobs, road safety, freight productivity,
communication networks, and skills development.
Councils will also have a role in NBN Co’s
plans to invest in extending fibre-direct connections to homes and businesses.
The $4.5 billion plan includes the creation of a $300 million fund to co-invest
with local governments to improve broadband services in the bush and beyond.
Local governments that rely heavily on
domestic and international visitors, especially those outside the big cities,
will also benefit from a $50 million Regional Tourism Recovery initiative, and
a new $200 million round of the Building Better Regions Fund.
Mayor O’Loughlin thanked the Government for
its support for locally led economic recovery.
“The financing of infrastructure projects
in local government areas will create jobs, provide support for local
businesses, and provide new hope to local communities that have done it tough
for nine months or more,” he said
Mayor O’Loughlin said local government leaders – fully aware of the importance of the regions in enabling national economic recovery – would get on with the job of identifying eligible projects in partnership with their communities.
ENDS