The Western Australian Local Government Association (WALGA) is reviewing the current funding method used to supply Royalties for Regions money to regional communities.
President Troy Pickard said the Association is working with the Department of Regional Development and Lands to create greater certainty in funding from the Country Local Government Fund to make it less vulnerable to movements in royalties income.
“The volatility inherent in royalty collections, however, causes challenges for councils in carrying out their strategic planning processes – in particular large scale, strategic infrastructure projects, which often require ongoing funding over a number of years,” Troy Pickard said.
“To commence a project on the understanding that funding will be available in future years and then have that money not be forthcoming leaves councils in a difficult position – they either have to defer the works, meet the funding shortfall from their own reserves or borrow money to continue.”
The Royalties for Regions agreement was set up by the Western Australian Government to focus on regional development throughout the State.
Under the agreement, around 25 per cent of Western Australia’s mining and onshore petroleum royalties will be returned to the State’s regional areas each year as an additional investment in projects, infrastructure and community services.
During 2009–10 it will provide an extra $619 million for regional communities.
