Regional cash goes to cities

Picture: Mary Meagher.

A group representing local governments in the Goldfields has vowed to seek an explanation from Prime Minister Tony Abbott after revelations more than $67 million of regional development funding was spent in metropolitan areas.

The Goldfields Voluntary Regional Organisation of Councils, which was formed in 2011 to promote regional development, plans to write to the Department of the Prime Minister and Cabinet to voice its discontent over allocation of the National Stronger Regions Fund.

The NSRF was rolled out by Minister for Infrastructure and Regional Development Warren Truss last year to direct $1 billion over five years to "fund priority infrastructure in regional communities".

But a ledger of successful bids released last month lists several metropolitan project locations, including Byford, Belmont, Bendigo and South Brisbane.

Asked yesterday why metropolitan areas had benefited from round one funding, a spokeswoman for Mr Truss said the program was directed to disadvantaged areas, and submissions were assessed on a merit-based system.

"The fund is highly competitive, as evidenced by the 405 applications received for round one which sought funding of more than $1.2 billion," she said.

"In the end, 51 projects were chosen under round one, sharing in more than $212 million in funding."

City of Kalgoorlie-Boulder Mayor Ron Yuryevich said the allocation of NSRF money was "insulting".

"I'm not saying their projects are not appropriate, but we need to ask for a clear policy in regards to regional development, particularly in regards to a program of funding for regional infrastructure," he said.

"Are we dumb to think that a stronger regions funding program is about regions when it's given to us by the minister for regional development?"

The backlash comes just days after Regional Capitals Australia highlighted the need for more targeted infrastructure investment in Australia's 50 regional capitals to "ease the squeeze" in metropolitan cities.

The Shire of Dundas was among the Goldfields shires which missed out, announcing last week it planned to raise a loan for $1.5 million to account for a knockback from the NSRF for the same amount to upgrade the Norseman Airport.

The only successful bid within the electorate of O'Connor was the City of Albany, which received just under $1 million for construction of the Albany Visitor Centre.

A spokeswoman for Mr Truss said yesterday round two of the NSRF had opened, and following feedback from stakeholders, the Government had made some amendments to the program to reflect its objectives better.

It is understood $25 million will be quarantined for those projects seeking funding of $1 million or less.