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Investment sign of a 'healthy partnership': LGAs

Published on Fri, 26/06/2009, 02:53:38

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By Rob O'Brien

Local government associations have come together to praise the Federal Governments new $245 million investment in community infrastructure and reform initiatives.

The Prime Minister Kevin Rudd revealed the extra funding at the second annual meeting of the Australian Council of Local Government (ACLG) in Canberra yesterday.

Of the funding, $220 million will go to help councils build and modernise community facilities, including town halls, libraries, community centres, sports grounds and environmental infrastructure.

A further $25 million will be allocated over two years to a Local Government Reform Fund to help councils better manage their infrastructure and plan for future needs in their communities.

The boost for community infrastructure will be a “shot in the arm” for Queensland councils, the Local Government Association of Queensland (LGAQ) said.

Acting LGAQ President Bob Abbot said many councils had significant infrastructure backlogs and would use the additional funds to deliver projects in their communities.

Cr Abbot said the announcement was especially timely following the state government’s decision to axe subsidies to local governments as part of its state budget.

“This shows the Federal Government is serious about backing up its new partnership with councils with real financial investment into local government.

“In the past six months, the Rudd Government has allocated more than $1 billion to councils to fund local community infrastructure.

“It is the most significant advancement in local government funding in almost a decade.”

Infrastructure deficits

Cr Abbot said councils across the country were facing a growing infrastructure funding deficit of more than $14.5 billion and up to 30 per cent of Australian councils were in urgent need of financial assistance.

“The extra money announced today is another step in the right direction to help turn this financing crisis around,” he said.

Cr Abbot said the Federal Government’s $25 million allocation for councils’ asset management needs was also a particularly welcome response to LGAQ's lobbying for this support.

Local Government Association of South Australia (LGA) president, Felicity-ann Lewis, said the extra investment would support local jobs at a...
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