Regional and rural infrastructure program oversubscribed but underfunded

More than 300 projects were assessed as suitable for funding from the Growing Regions Program but just 40 were deemed successful.

The federal government has allocated less than 70 per cent of a $300 million round of an infrastructure grants program for regional and rural Australia, despite receiving applications for $1.4 billion worth of projects.

Infrastructure, Transport, Regional Development and Local Government Minister Catherine King was given a list of 311 projects suitable for funding under the guidelines of her new Growing Regions Program, but only 40 projects worth a combined $207 million have been successful in the program’s first round.

In response to questions from Victorian Senator Bridget McKenzie during Senate estimates last week, the Department of Infrastructure, Transport, Regional Development, Communications and the Arts said not all of the funding – $600 million over two years – had been allocated.

“It’s correct that not all of the funding that could have been spent for the round has been allocated,” Regional Development and Local Government first assistant secretary Clare Chapple said. “Ultimately, the minister as the delegate makes the decision about which projects are successful and eligible for funding.”

It is unclear whether round two of the program will be for $406 million worth of projects, to account for the first round’s shortfall.

The Department told The Weekly Times not all applications were found suitable in the assessment process in accordance with the grant guidelines.

Among projects not to receive funding is the $2.7 million redevelopment of the Mount Gambier saleyards, despite having been deemed an important project for the state by the South Australian government, which has already pledged $2.7 million towards it.

Ten of the 40 successful projects are in electorates held by politicians sitting on a multi-party parliamentary panel charged with assessing applications, including two in Indi held by independent Helen Haines and two in the electorate of Bendigo, held by Labor Member Lisa Chesters.

Ms Chapple said none of the panel members saw applications relevant to their electorates.

The Growing Regions Program was announced just prior to the October 2022-23 federal budget as a replacement to the Coalition’s Building Better Regions Fund. Labor has long accused the Coalition of using the BBR as a conduit for pork barrelling.