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The Local Government Association of Australia is demanding immediate action from the Commonwealth Government to ensure no local authority will suffer financial hardship following their announcement of cuts to local road funding by $100 million.
These cuts have been made from the Roads to Recovery program 2002-2003.
The APLA claims the Commonwealth has pressured Local Government to fully expend funding from the $1.2 billion Roads to Recovery program on local roads.
“This has resulted in substantial forward commitments involving contracts for hundreds of major road construction projects,” they said.
Local Councils would be forced to meet the shortfalls and pay potentially huge penalties for breaking contracts with construction companies.
“Not so,” said Deputy Prime Minister and Minister for Transport and Regional services. Reports that the Roads to Recovery program has been cut by $100 million are incorrect and have been refuted by Mr Anderson.
“There has been some rescheduling from 2002-03 to 2004-05 but the overall amount available to local councils over the four year period remains unaltered at $1.2 billion,” he said.
It is the rescheduling which is causing local government, including Walgett Shire Council, angst.
Colin Keen, Manager Utilities and Recreation, Walgett Shire Council, said the Shire had hired a consultant to organise tenders and they are now committed to this development.
The rescheduling will cost the Shire one third of their overall budgetary allocation. When Mr Keen spoke with the Deputy Prime Minister’s office, he was advised “that the priorities have changed and the current budget was required in other areas.” A feeble response when the need of Walgett Shire is NOW.
Still unreceived is a pledged initial payment of $420,000 which will be added to the reschedule amount at the end of the program.
A total of $700,000 has been deferred. Who picks up the shortfall? In what states does this leave our roads? What of the unfilled contracts and the effect their non-fulfilment will have on local economies?
Local councils, committed to fixed expenditure, are being encouraged to lodge their objections with Australian Local Government Association who will make representations to the Minister on their behalf.
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