NSW government spend $350m on local council stimulus

Hundreds of local playground, swimming pool, road and library projects will be fast-tracked after the state government announced a $350 million cash injection for local councils.

• NSW small businesses eligible for $10,000 grants
• Councils bleeding $1.7m a week amid COVID-19 crisis

Playgrounds, libraries, sporting fields, swimming pools and suburban roads are set to benefit most from a $350 million local government stimulus package announced today.

NSW Treasurer Dominic Perrottet is offering $250 million in cheap loans to the state’s 128 local councils to ensure they get shovel ready projects off the ground.

Up to $112.5 million will also flow from the NSW Government’s ‘Jobs for NSW’ Fund to a Council Job Retention Allowance of $1500 per fortnight per employee – payable for up to three months.

Another $32.8 million will be offered to councils to offset the increase in the Emergency Services Levy.

Treasurer Dominic Perrottet is offering is offering $250 million in cheap loans to NSW councils.

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The cash injection is designed to limit job losses in the NSW local government sector, which is the biggest employer in many regional areas.

The state’s 45,000 local government workers are not eligible for the Federal Government's JobKeeper allowance.

“This is about keeping people in jobs which will allow councils to continue to provide essential services in their communities throughout the ongoing COVID-19 crisis and bounce back faster once we come out the other side,” Mr Perrottet said.

Suburban swimming pools, like Botany Aquatic Centre, will benefit from the $350m local government stimulus package.

Local Government Minister Shelley Hancock said the package builds on the NSW Government’s $82 million to support 260 council-run childcare centres and $25 million for local councils to rebuild and refurbish local showgrounds.

With many people out of work, stood-down or working from home, there has been a renewed focus on the use of local facilities.

Local Government Minister Shelley Hancock.

Local Government NSW President Linda Scott. Picture: Craig Wilson

Local Government NSW president Linda Scott said the package makes NSW the only state government to provide councils with economic stimulus.

“The NSW Government has ensured our state will lead the economic recovery of COVID-19,” she said.

Sydney Business Chamber executive director Katherine O’Regan also welcomed the cash, saying "this is money well spent, bringing local jobs and much needed investment in local infrastructure such as swimming pools, sports fields and community facilities".

"Local councils are well placed to contribute to the state's recovery and providing access to funds to get local projects moving is a good move," she said.

Sydney Business Chamber executive director Katherine O’Regan.

But while the money was welcomed, Parramatta Lord Mayor Bob Dwyer also said his council still faces huge economic challenges.

“Council’s finances have been significantly impacted by the pandemic and we’re forecasting revenue losses in the range of $20m to $40m over the next 12 months,” he said.

“We have concerns that without further financial support from the state and federal governments, services to the community and jobs may be impacted.”