When the Local Government and Shires Association of New South Wales commissioned a Local Government inquiry into the financial sustainability of Local Government in New South Wales, infrastructure funding was raised as a significant issue. In response, Bathurst Regional Council plans to have quality infrastructure in place that meets the needs of the community by providing adequate facilities for a population of 80,000 by the year 2050.
Council’s General Manager, David Sherley, said Bathurst has taken up a number of options in dealing with long term infrastructure needs.
“In reality, these are not brand new options,” he said. “It is about utilising the opportunities that are out there that we often forget about.”
Bathurst Regional Council owns, operates and leases out its Mt Panorama complex for many events, including motor racing. In recent years, funding for upgrades to the complex has been a significant issue and various funding mechanisms have been used.
“The V8 Supercar Race held annually at the Mount and other events are of major economic importance to the region,” David Sherley said. “While Mt Panorama is recognised by many people as one of the finest tracks in the world, this does not mean we will always be able to retain our major event at the race track. In other words there is always the danger of taking things for granted.”
Council recognised that a significant upgrade was required of the pit paddock complex and undertook an extensive campaign of lobbying to attract Federal and State funds. This lobbying included payment for a political lobbyist as well as senior Council staff and Councillors making regular visits to Sydney and Canberra over a period of several years. Eventually the project received $10 million Federal funding, $10 million State funding and between $4-6 million of Council funds, part reserves, part loans.
“We should not lose sight of the fact that an extensive lobbying campaign is a legitimate form of operations to attract funding for infrastructure,” said David Sherley. “Often the timing is dependent on political issues out in the public and the timing of elections.”
Funding was also sourced from the Federal Department of Transport and Regional Services (DOTARS) and the NSW Department of State and Regional Development. This was used to put together an economic plan for Mount Panorama to maximise the potential of this iconic facility.
This year, Council promoted its own event at Easter called the Bathurst International Motor Festival. Council entered into an arrangement with a promotions company to conduct the event, which fell within the public/private partnership (PPP) legislative regime. Council received approval from the State Government to go ahead with the PPP.
“PPPs are a useful tool for funding infrastructure development or for facilitating utilisation of assets,” David Sherley said. “One must be very aware of the level of exposure that Councils are placed under when entering into these arrangements. In our case, the PPP was for an event, but often PPPs are for capital infrastructure and a detailed analysis of the pros and cons needs to be undertaken. In implementing the economic plan for the Mount, this option will continue to be explored.”
For further information contact David Sherley on (02) 6333 6201.
