At the second meeting of the Australian Council of Local Government (ACLG) at Parliament House in Canberra on 25 June, Prime Minister Kevin Rudd announced that a further $220 million will become available by the end of this year for community infrastructure projects, such as libraries, community centres, sportsgrounds and environmental infrastructure.
He said that this brings the Government’s record investment in community infrastructure to more than $1 billion since last November.
President of the Australian Local Government Association (ALGA), Councillor Geoff Lake, welcomed the announcement.
“This is the most significant advancement in Local Government funding in almost a decade,” he said. “It shows that the Australian Government is serious about backing up its new partnership with councils with real financial investment into Local Government.
“We know that Local Government across the country faces a growing infrastructure funding deficit of more than $14.5 billion and that somewhere between 10 to 30 per cent of councils are facing bankruptcy unless there is urgent reform to Local Government funding.
“This extra money is another step in the right direction to begin to turn this financing crisis around.”
The Rudd Government is partnering with Local Government to invest in nation building infrastructure to support local jobs during the global financial crisis.
Speaking to over 400 Mayors and Shire Presidents at the ACLG meeting, the Prime Minister said that we can’t have a strong national economy without strong local economies.
“We are serious, deadly serious, about this new partnership with Local Government,” he said.
“We absolutely believe in the resilience of communities.”
The $220 million injection into the Community Infrastructure Program will be delivered through the following two streams:
- $100 million shared between all of the nation’s councils and shires
- $120 million for larger strategic projects, provided on a competitive basis.
This investment has already been allocated in the 2009–2010 Budget.
This new funding adds to the $800 million currently being delivered through the Community Infrastructure Program.
More than 3,300 small and large scale projects are underway or soon to commence in communities around Australia, supporting local jobs today by building urgently required infrastructure projects.
The Federal Government will commence the next round of Community Infrastructure Program funding at the end of 2009 to make sure councils have completed existing smaller scale projects in a timely manner.
The Rudd Government has also pledged to work with councils to improve their longterm financial sustainability and resilience.
The Prime Minister announced that the Government will establish a $25 million Local Government Reform Fund to fast track improvements to the sector’s infrastructure asset and financial management systems, and to encourage cooperation between councils in the delivery of services.
“Local Government also welcomes this investment, which responds to ALGA’s call for funding to support asset management reform across Local Government,” Councillor Lake said.
“We believe this money can be used to drive real reform to help councils manage their assets.”
Over two years, its $25 million Local Government Reform Fund will:
- assist councils to implement new asset management and planning consistent with a national framework
- fund the collection and analysis of robust data about councils’ infrastructure assets
- support collaboration between councils on a regional basis for service delivery and planning.
Australian Centre of Excellence for Local Government
The Government has also announced that the Australian Centre of Excellence for Local Government, to promote best practice, innovation and professionalism in Local Government, will be based at the University of Technology, Sydney (UTS).
It will be part of a consortium that includes the Australia and New Zealand School of Government (ANZSOG), University of Canberra, Local Government Managers Australia and the Institute of Public Works Engineering Australia.
The new centre will work with stakeholders to:
