Minister welcomes decision to bring forward federal funding

Local Government Minister Warren Pitt today praised the Federal Government’s decision to bring forward Financial Assistance Grants payments to regions affected by the north Queensland floods.

Mr Pitt said that Prime Minister Kevin Rudd had announced that the impact of natural disasters in Queensland and Victoria had prompted the Federal Government to bring forward payment of Financial Assistance Grants by three months.

“The decision from the Prime Minister today means that all Queensland councils will receive $92.6 million in fourth-quarter payments,” Mr Pitt.

“These payments, which help councils build vital community infrastructure, were originally earmarked for 15 May but will now be brought forward to 23 February.

“This will come just five days after councils receive their third-quarter payments of $92.6 million,” Mr Pitt said.

Financial Assistance Grants, totalling more than $370 million for Queensland councils in the 2008–09 financial year, are paid to councils each quarter.

“It’s important to note that these grants are untied payments to councils, giving them the ability to spend the funds on local priorities as determined by council,” Mr Pitt said.

Mr Pitt said the Federal Government had also announced that councils in flood-affected areas would be given the opportunity to reprioritise their projects under the Government’s $250 million Regional and Local Community Infrastructure Program.

“Queensland councils have been allocated almost $41 million through this initiative and flood-affected councils will now be able to redirect funding towards projects that will better help their recovery,” he said.

“With the extensive damage caused by the flooding, I’m sure all north Queensland communities will welcome this news from the federal government.”

“These grants are in addition to Natural Disaster Relief and Recovery Arrangements funding already in place to provide councils with financial assistance to recover from the devastating effects of natural disasters.”

Media contact: Minister Pitt’s office 3227 8819