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New regional framework proposed

Posted on November 5, 2008, 12:12pm

A House of Representatives standing committee interim report recommends a new framework for regional infrastructure funding with a greater focus on community projects and local government involvement.

In releasing the report titled “Funding Regional and Local Community Infrastructure”, committee chair Catherine King criticised the former government’s Regional Partnerships Program.

“Regions across Australia deserve to have access to infrastructure funding on a fair and transparent basis. That is clearly not what happened under the Regional Partnerships Program,” Ms King said.

“Both a committee of the Senate and the Australian National Audit Office found serious flaws in the previous government’s administration of the Regional Partnerships Program.

“This in turn tainted some project outcomes, led to questions about the transparency of the decision-making process and in some instances saw substantial amounts of funding go to projects that never actually eventuated, while some recommended projects were not funded at all.”

The committee called for a new focus on community and social infrastructure, prompting a dissenting report from Nationals MP Paul Neville.

The government signalled in the May Budget it intends to introduce a Regional and Local Community Infrastructure Fund.

“This interim report contains recommendations to government as to how the new fund may be structured,” Ms King said.

“The interim report recommends that the new program cover all regions of Australia, employ a partnership approach and predominantly fund hard infrastructure.

“It recommends that local government be the auspice agencies for projects that require a local government financial contribution.

“With not-for-profit organisations able to apply directly, where they are not seeking a local government financial contribution, but having to work with local government to establish their support. It recommends that for-profit organisations be ineligible to apply.

“The report recommends three funding streams: those seeking less than $50,000 contribution from the program; those seeking between $50,000 and $250,000; and those seeking more than $250,000 and closed funding rounds.

“The committee believes the Regional and Local Community Infrastructure Program has the potential to stimulate economic growth in local communities at the same time as improving the liveability of our regions.”

In his dissenting comments, Mr Neville said a holistic approach to regional development was needed.

“I contend that for genuine regional economic development not to consider commercial development is a denial of the stated role of the department itself, Regional Development Australia and ultimately the ministry’s influence,” Mr Neville said.

“While (community and social infrastructure) are important in themselves, they become insignificant when there is no driving force in regional communities to develop new industries or draw industries back to regional Australia.”

MICHAEL GOREY

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