Rural and regional Victorian communities are set to benefit from a $1 billion growth fund following the passage of the Regional Growth Fund Bill through the Victorian Parliament on April 7.

 

The fund, to be invested over the next eight years, replaces the Regional Infrastructure Development Fund which was established by the Labor government in 1999.

 

However, the Deputy Premier and Minister for Regional and Rural Development Peter Ryan, said the new fund would “supplement, not replace, existing government programs.”

 

The new fund will be divided into two streams – a  strategic stream which will receive 60% of the funding and a local stream that will receive the other 40%.

 

The strategic stream will target infrastructure, facilities and service requirements of rural and regional Victoria and will include $100 million for the Energy for the Regions program which will  extend the supply of natural gas to 12 initial towns  (Avoca, Lakes Entrance, Invermay, Winchelsea, Heathcote, Orbost, Warburton, Marong, Bannockburn, Terang, Maldon and Huntly), upgrade  Mildura’s natural gas capacity, and provide up to $1 million to fund a feasibility study into the provision of natural gas to Victorian communities along the Murray River.

 

The local stream will include the Local Government Infrastructure Account and the Putting Locals First program, which focus on locally identified and prioritised projects.

 

Speaking in Parliament, the Minister for Local Government Jeanette Powell said $160 million had been allocated to enable 40 councils each year can access up to $1 million to upgrade their roads and bridges.

 

A Regional Policy Advisory Committee will be established with a majority of members from rural and regional Victoria to advise the government on: strategic infrastructure priorities and projects that have State-wide significance or significance to rural and regional Victoria which could be funded from the Regional Growth Fund, the operation of the Regional Growth Fund and the outcomes of funded projects, and other policy matters affecting rural and regional Victoria.

 

The fund will be operational by July 1, 2011.