Community & Infrastructure

• NSW Local Infrastructure Renewal Scheme

  24 January, 2012

  Councils welcome NSW Local Infrastructure Renewal Scheme

   

  The Local Government and Shires Associations of NSW (LGSA) have welcomed the commencement of the NSW Local Infrastructure Renewal Scheme (the Scheme).

  President of the Shires Association of NSW, Cr Ray Donald, has acknowledged and thanked the Minister for Local Government, the Hon Don Page MP, for launching the Scheme, which honours an important election commitment to Local Government in NSW.

  "The Scheme provides interest subsidies of 4% that will substantially reduce the borrowing costs on significant loans that councils take out specifically to pay for infrastructure projects such as roads, community halls, libraries, parks, sports facilities and water facilities." said Cr Donald.

  "Such measures are necessary to address the crippling $6billion Local Government infrastructure renewal backlogs identified in the Percy Allan Report," he said.

  "This subsidy, as part of the Scheme aims to encourage councils to make greater use of borrowings to accelerate investment in infrastructure backlogs."

  While preference will be given to projects with a total cost of $1 million, councils will now be able to bundle projects. Smaller projects or programs may also still be considered for smaller councils provided they satisfy the criteria. Applications that satisfy criteria will still be subject to a NSW Treasury Corporation assessment of the council's financial position.

  An Assessment Panel is being established by the Division of Local Government (DLG) to assess application. It comprises an independent chair and representatives of the DLG, the NSW Treasury Department and the Department of Planning and Infrastructure.

  "It will be critical to the success of the Local Infrastructure Renewal Scheme that the members of the Assessment Panel have a deep appreciation of the roles and functions of Local Government and the operations of councils," said Cr Donald.

  President of the Local Government Association of NSW, Cr Keith Rhoades AFSM, said the LGSA will be closely monitoring the process and the roll out of the latest round of the Scheme.

  "The LGSA have strongly advocated for the provision of low interest loans by the NSW Government to help councils deal with critical infrastructure backlogs. We are pleased that the latest Scheme specifically targets these backlogs," said Cr Rhoades.

  The Scheme is set to provide interest rate subsidies of $70 million over five years.

  "While it is positive that the NSW Government has acknowledged the Local Government infrastructure renewal backlog, and the Scheme is definitely a step in the right direction, it will not be sufficient in itself. The LGSA will be calling for the expansion of the Scheme in future State budgets," he said.

  "The Scheme should not be seen as a replacement for special rate variations, but as an additional tool to augment council financing options for providing essential community assets."

  Further information about the Local Infrastructure Renewal Scheme view: www.dlg.nsw.gov.au

  Media Enquiries

  Cr Ray Donald                                    President, Shires Association: 0438 699 910

  Cr Keith Rhoades, AFSM       President, Local Government Association: 0408 256 405

  Megan Graham                       LGSA Communications Director: 0413 313 498