MEDIA RELEASE

The Hon Chris Bowen MP

Acting Minister for Infrastructure, Transport,
Regional Development and Local Government

The Australian Coat of Arms

01 July 2008
AA074/2008

RUDD GOVERNMENT TO DELIVER $508 MILLION TO VICTORIAN LOCAL GOVERNMENTS - AN INCREASE OF $35 MILLION

(Media release issued by Chris Bowen, Acting Minister for Infrastructure, Transport, Regional Development and Local Government)

The Rudd Labor Government is set to deliver more than $508 million to local governments in Victoria in the new financial year.

This means an estimated $35 million more for Victoria than the last financial year.

All councils will be able to spend these funds on a range of priorities including local roads, parks and pools, libraries, community centres, health and child care services, and water and sewerage services.

The estimated $508 million in federal funding for Victorian councils in 2008-09 includes:

  • $440 million in Financial Assistance Grants, which are untied and can be spent according to local needs; and
  • $68 million in Roads to Recovery funding for nominated local roads [This includes funds not spent by local councils in previous years, which the Government will make available again this year].

The Rudd Labor Government is putting local government at the heart of our nation-building agenda.

Australia's local councils are not only critical to maintaining vibrant local communities but make a vital contribution to the nation's productivity.

For example, local councils are responsible for 128,210 kilometres of road across Victoria.

The Rudd Government also understands the importance of financial sustainability of local government and differing abilities to raise revenue.

Rural and regional communities, in particular, are under increasing pressure. 

That's why around two-thirds of the grants nationally will go to rural and regional councils due to their higher costs in providing services and difficulty in raising revenue.

Local government grant commissions in each state and territory will recommend where the financial assistance grants will be allocated, with the first quarterly instalment to be delivered in August 2008.  Roads to Recovery funds are provided directly to councils for nominated local road projects.

Media Contacts

Moksha Watts ( Mr Albanese's Office ) 0413 389 070

 

URL: http://www.minister.infrastructure.gov.au/aa/releases/2008/July/AA074_2008.htm