Peri-urban councils including Baw Baw and Bass Coast have been rocked by a State Government decision to remove them from a major funding program.
The Growing Suburbs Fund (GSF) was set up in 2015 to deliver critical community infrastructure to Melbourne’s fast-growing outer suburbs, investing more than $1.2 billion into 346 projects in that time.
After expanding to include peri-urban municipalities in 2020, the government last week revealed it would return to focus on interface councils, in turn removing five councils from the funding stream, including Baw Baw, Bass Coast, Golden Plains, Moorabool and Surf Coast Shire Councils.
Peri Urban Councils Victoria chairman and Baw Baw Shire Councillor Michael Leaney said he and his fellow councillors were disappointed by the government’s actions.
“We call on the Victorian Government to explain to peri-urban communities how things like community centres, libraries, pools, parks, childcare centres and sporting facilities can now be built without funding assistance from the state,” Cr Leaney said.
“Peri-urban councils, just like all councils across the state, are rate-capped, so local government is not in a position to fill this funding void.”
He fears the state’s removal from the program will also inhibit other funding opportunities for the councils.
“Normally, State Government programs provide co-funding for federal programs, so the removal of peri-urban areas from this funding opportunity will create a growing infrastructure divide between the councils in our State who are all working hard to accommodate new growth,” Cr Leaney said.
“Our members are unlikely to attract federal funding without state support.”
Bass MP Jordan Crugnale said the GSF program had extended to peri-urban councils in 2020 as part of the government’s pandemic response.
“We value our regional communities and continue to support them and the various sectors within including agriculture, business, sporting, tourism, arts and culture, major events, skills and training just to name a few,” Ms Crugnale said.
But Cr Leaney argued peri-urban municipalities continue to be impacted by “Covid-fuelled growth”.
“If you add new immigration, which is set to rise to historic levels again, peri-urban towns will continue to be the front line for the ongoing wave of growth, increasing our population by as much as 40 per cent over the next 10 years,” Cr Leaney said.
“The Victorian Government would appear to not fully understand population growth in peri-urban areas – unfortunately peri-urban councils, who have limited capacity to raise funds, have fallen through the cracks again and we fear there will be long-term damage from excluding peri-urban councils from the Growing Suburbs Fund.”
Ms Crugnale maintained that peri-urban councils have a “myriad of funding streams previously afforded to them as regional areas”.
That includes benefits from the recent $2 billion Regional package which was announced in lieu of the 2026 Commonwealth Games and was projected to boost tourism and infrastructure in regional Victoria.
“We also have a dedicated regional fund that covers for example Infrastructure, Jobs, Communities and open now is also the Country Football and Netball fund.
“The criteria for the 2023-24 round does not have any impact on projects that have already been funded through the Growing Suburbs Fund in peri-urban councils.
“I look forward to seeing these projects delivered for the benefit of our local and visitor communities.”
Baw Baw Shire chief executive Mark Dupe echoed concerns for the future of funding for the region.
“By removing eligibility for this funding for peri-urban councils altogether, councils like Baw Baw Shire have lost one of the few significant streams of funding left to our region,” he said.
Funding from the GSF program provided several significant contributions to infrastructure in Baw Baw Shire, including $500,000 into the Longwarry Early Learning Centre, $2 million for a multi-use pavilion at Bellbird Park East, $1.5 million for a community open space project in Rollo Street Yarragon and $3.5 million for the Baw Baw Culture and Connection Precinct’s Library and Learning Centre.
The program had previously attracted criticism after the Victorian Government allocated $10 million to the fund in May’s 2023/24 Budget – a significant drop from the $50 million assigned the previous year.
The GSF program remains accessible to 10 interface councils, including Casey and Cardinia.
