Council infrastructure spending to be brought forward to boost economic stimulus
Councils could bring forward big projects to help stimulate the economy as they scramble to rewrite budgets in light of the coronavirus pandemic.
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Councils will consider fast tracking major infrastructure spending to stimulate the economy as they face an emergency redraw of their budgets.
The council sector had been working on budgets for the 2020/21 financial year in recent months – but most councils now face significant losses in lease and rate revenue as the impacts of the coronavirus outbreak continue to unfold.
The Local Government association has foreshadowed that the financial hit could change the provision of some services.
But a big spending splurge could also be on the cards to help counteract the economic damage inflicted by widespread business closures and job losses.
LGA president Sam Telfer said councils would have to consider what the “pandemic will mean for the way they operate and how they deliver local services”.
“It might mean that some services will have to be delivered differently so that communities can continue to access the support and connections they need,” Mr Telfer said.
“Many councils will also be exploring how they can work with the state and federal government to stimulate economic activity and support long term recovery.
“This could involve bringing forward infrastructure projects identified in their strategic and long term financial plans to create new jobs and increase spending in their communities.”
It was not yet known what projects would be brought forward.
It came as The Advertiser revealed the State Government would release a second tranche of economic stimulus measures within a week, aimed at saving jobs.
Premier Steven Marshall is considering payroll and land tax relief as well as abolishing fees and charges.
Local Government Minister Stephan Knoll said, as part of our $350million stimulus plan “we have $50 million on the table, in conjunction with local government, to deliver local projects as quickly as possible”.
“It’s local projects that can get underway within weeks and months that will help support local businesses and jobs, keeping more South Australians in work” Mr Knoll said.
“We thank the Adelaide City Council for its relief measures and implore all councils to use their budgets to provide stimulus and hip pocket relief to help our economy through this difficult time.”
Adelaide City Council announced a $4 million support package for traders and community groups – which includes free rent in its buildings – to cope with the economic impacts of COVID-19.
Meanwhile, Playford councillors want some of the coronavirus stimulus package funding to be spent on duplicating one of northern Adelaide’s busiest roads.
The State Government has been asked to take over responsibility for Curtis Rd, which runs between Munno Para and Angle Vale.
Suburban development on both sides of the single lane road has been rampant over the past decade as part of the Playford Alive initiative.
Housing now occupies former paddocks at Andrews Farm, Munno Para West and Smithfield Plains.
Ward councillor Clint Marsh said he and other elected members wanted the Department of Planning, Transport and Infrastructure to take control of the road from Playford Council.
“Curtis Road is no longer a neighbourhood street,” he said.
The road has become a major connector between Main North Road and the Northern Expressway.
“A new commercial precinct along Curtis Road has been unlocked to service the fast growth of the area, with growth in adjoining residential estates continuing.”
Cr Marsh said the cost of upgrading Curtis Rd to double laned was estimated to cost around $100 million.
“This type of expenditure is not within the capability of a local government to absorb,” he said.
“This value of investment in a growth council should be funded by State Government.”
Cr Marsh said the council’s administration was working constructively with DPTI to resolve the situation.
“We really want to see DPTI to take back care and control of the road, to address the issues our community and road users are facing on a daily basis,” he said.