Allan Government’s cut: Councils short-changed on blackspot road funds

The Allan Government creamed off $1.57 million in federal black spot road funding, meant for local councils, for itself.

The Victorian Government took a big slice of federal blackspot road funding that was destined for local councils, to cover its administration costs.

The Allan Government is carving off a hefty slice of federal black spot road funding for itself, despite the funds being allocated to local councils.

Documents obtained by the Opposition as part of a freedom of information request, reveal the Department of Transport creamed off $1.57 million of federal black spot road funding for councils in 2022-23, out of a total allocation of $18.41m.

The DoT briefing document signed off by former Victorian Roads Minister Ben Carroll states the funding was needed by the department “toward administration costs which cannot be absorbed by the department” and constituted 8.5 per cent of the federal allocation across 47 projects.

Municipal Association of Victoria president David Clark said “that’s a hellishly good fee that’s meant to flow through to projects”.

Most of the 47 councils’ blackspot projects involve installing safety barriers, traffic islands, widening roads and removing hazards to save lives and injuries.

Roads Minister Melissa Horne was asked how the Allan Government could justify creaming off so much federal funding and what administrative tasks her department performed.

The only response was to that “state governments manage and administer the Federal Blackspot program on behalf of the Commonwealth Government.”

State Opposition roads spokesman Danny O’Brien said Victorians were “being short-changed by a government that puts more emphasis on featherbedding the public service than delivering on-the-ground works to make our roads safer.

“Clipping the ticket for more than eight per cent of federal grants in administration costs is more of the wasteful mismanagement we’ve come to expect of a Labor administration that can’t manage money.

“We need more boots on the ground fixing roads and less suits in an office taking a commission for passing on cheques.”

The federal government provides $110m in blackspot funding each year, distributed across all states and territories.