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$307.5 million Funding Boost for Australia's Local Roads

Minister for Transport and Regional Services - Warren Truss
010aTRS/Budget 9 May 2006

Tonight's Budget includes an additional $307.5 million for local roads to be made available in 2005-06 as a supplement to the Roads to Recovery Programme

Australian Government Minister for Transport and Regional Services, Warren Truss, said that under AusLink, the National Land Transport Plan, this announcement brings to $2.0 billion the Australian Government's commitment to local road improvements in the financial years 2004-05 to 2008-09.

"The total comprises $1.48 billion for AusLink Roads to Recovery, the $307.5 million supplementary payment and $220.0 million under the AusLink Strategic Regional Programme," he said.

Australian Government Minister for Territories and Roads, Jim Lloyd, said that councils also receive annual Financial Assistance Grants (FAGs) earmarked for roads, and in which all councils share.

"The additional $307.5 million in 2005-06 in supplementary Roads to Recovery funding would provide local government with a greater opportunity to accelerate the upgrading of local road infrastructure.

"These funds will be allocated to local councils and for unincorporated areas in line with the current Roads to Recovery annual allocations," Mr Lloyd said.

Mr Truss said the Australian Government would also spend $307.5 million in 2006-07 under the Roads to Recovery Programme, including $7.5 million for roads in unincorporated areas.

"In 2006-07, councils would receive $515.2 million for roads through untied FAGs. South Australian councils receive a special local roads payment of $13.0 million in 2006-07.

"Under the Roads to Recovery Programme, direct funding to local councils is distributed according to a formula based on population and road length set by the Local Government Grants Commissions in each state and the Northern Territory. Councils are free to spend this money on any priorities they nominate.

"The AusLink Strategic Regional Programme is designed specifically to assist councils develop regional land transport infrastructure supporting industry, tourism and economic development. Social connectivity and access to services is another aim," he said.

"This programme involves expenditure of $220.0 million over four financial years for eligible land transport projects, including rail. Some $60.3 million of this is budgeted in 2006-07," Mr Truss said.

The Department of Transport and Regional Services is assessing applications from councils for unallocated funding under the AusLink Strategic Regional Programme. Successful applicants will be notified later in the year.

Mr Lloyd said the local roads components of AusLink had been hailed universally by local governments as the most valuable assistance programmes for improving their transport infrastructure and enhancing quality of life in city and country.

"Local government has demonstrated it can be a valuable partner in spending this considerable Australian Government funding for roads responsibly, according to local needs. The Australian Government expects that the state and territory governments will continue to honour their obligations to assist councils with their road improvements and don't see this massive federal investment as an opportunity to water down their commitments," he said.

Australian Government allocations to councils for local roads are detailed in the table below.

Media contacts:
Mr Truss' office - Kylie Butler 02 6277 7680 / 0417 652 488
Mr Lloyd's office - Fiona Telford 02 6277 7060 / 0407 908 504

Local roads allocations to councils 200607

State
Supplementary Roads to Recovery Funding 2005-06 $m
Roads to Recovery 2006-07 $m
Untied local roads grants 2006-07 $m
AusLink Strategic Regional 2006-07 $m
Total $m
New South Wales
85.6
85.6
149.5
30.1
350.8
Victoria
62.5
62.5
106.2
10
241.2
Queensland
62.5
62.5
96.5
3.3
224.8
Western Australia
45.0
45.0
78.8
2.3
171.1
South Australia(2)
27.7
27.7
28.3
-
83.7
Additional funding for SA local roads

 

 

13.0

 

13.0
Tasmania
10.0
10.0
27.3
12.3
59.6
Northern Territory
9.0
9.0
12.1
2.3
32.4
Australian Capital Territory
5.0
5.0
16.5
-
26.5
Indian Ocean Territories
0.2
0.2
-
-
0.4
Total:
307.5
307.5
528.2
60.3
1203.5

Figures may not add precisely to totals due to rounding.

Footnotes

The AusLink Strategic Regional Programme figures for Queensland, Western Australia and the Northern Territory each include a notional allocation for the Outback Way. The final distribution of funds for the highway will be determined in consultation with the Outback Highway Development Council, local authorities and the state/territory governments.