A BOOST to federal roads funding will make a “huge difference” to regional councils, though apprehension remains about the ongoing funding shortfall.
The Federal Government recently announced significant increases to roads funding and changes to programs in an attempt to reduce the administrative burden on local governments.
Under the plan, Roads to Recovery funding would rise gradually from $500 million per year to $1 billion and annual black-spot funding would rise from $110 million to $150 million.
The Heavy Vehicle Safety and Productivity Program would merge with the Bridges Renewal Program into a new Safer Local Roads and Infrastructure Program, to gradually increase to $200 million per year.
“This will make a huge difference for councils outside of our big cities in particular, which have significant and ageing road networks under more demand than ever, as people flock to our regions,” Regional Development Minister Kristy McBain said.
“When all levels of government work together, we get better results in our communities, which is why we’ll continue to collaborate with local leaders across the country as we roll out this additional support.”
The announcements came just days after a Grattan Institute report found a “gradual erosion of untied funding” had a severe impact on local roads, in particular in rural areas.
It estimated an extra $1 billion was needed in the next year just to keep roads in the same state they are in today.
Mildura councillor for economic development Glenn Milne labelled the changes “a good move” and “absolutely needed”.
“Roads are well and truly underfunded and this is a step in the right direction,” Cr Milne said.
“Any extra we get will be money that we will spend well and it’ll be good for our community, but we definitely need that further discussion to make sure that our roads are kept up to date.”
Swan Hill Council director of infrastructure Leah Johnston said local government was always supportive of funding being directed to critical infrastructure such as the road network.
“As recently detailed in the Grattan Institute report, current funding models are not sustainable and there is a risk of roads falling into further decline,” she said.
“With the increase in heavy productivity freight, particularly in our area with the importance of agriculture to our economy, the renewal of our infrastructure is essential.
“So this announcement is well received, however, a lot more will be required.”
Ms Johnston said there needed to be a deeper discussion about support for local councils.
“The government is also finding it difficult to adequately maintain their own network, with the arterial networks also in decline in regard to condition,” she said.
“Costs are rising and the government understand the various challenges associated with finding the balance between social and environmental issues and the inability for councils to get more income.
“The bigger question is, how is the government going to support local government in bridging the funding gap?”
Cr Milne echoed the sentiment.
“We’re yet to see or understand how much money we’re going to get, but any extra funding towards roads is a good spend for us as a community,” he said.
“We cover a tenth of the state, hopefully we get a tenth of Victoria’s money.”
Infrastructure Minister Catherine King said the announced changes were “responsible” and would give councils the roads funding they needed “while also ensuring the increase doesn’t put pressure on inflation”.
