The Federal government has announced it will set up a new fund to assist rural, regional and remote Australia.
Regional Development minister Fiona Nash announced the Building Better Regions Fund at the Rural Press Club of Victoria.
Ms Nash said the economic case for investing in Australia’s regions was clear.
“Our regions allow our cities to exist,” Ms Nash said.
“Our regions supply the water, food, the gas and electricity which powers city households. Regional Australia supplies the milk which city people put on their breakfast, their cheese, butter and toast; the meat and vegetables they eat for dinner and the fruit and cream they have for dessert.”
She said the Australian economy was largely driven by the regions.
“Logic dictates we should invest in Australia’s regions because Australia’s regions power Australia’s economy.
“Strong regions mean a strong nation.”
Regional Australia was responsible for 67 per cent of Australia’s exports and 45pc of domestic tourism.
“I’d liken investment in regional Australia to making sure your car’s alternator is in good condition – it’s essential,” Ms Nash said.
“You could refuse to maintain the alternator to save money in the short term, but eventually the alternator will stop charging your car battery and your car won’t start. “Investing in the regions is a no-brainer, essential to keep cities running.”
The fund was not a “bailout”, but the same as the investments required to keep cities running.
“This is the mindset which must be adopted by government when investing in rural, regional and remote Australia,” Ms Nash said.
“Investment in rural, regional and remote areas is necessary investments to keep Australia’s powerhouse running smoothly.”
Ms Nash said there were some key differences between the new Building Better Regions Fund and previous funds.
Building Better Regions Fund was for rural, regional and remote communities, not projects in capital cities.
“A brand new source of funding will be available for community projects – a Community Investments Stream,” Ms Nash said.
“I realise regional Australia is made of more than bricks, mortar, roads and bridges. “The Community Investments Stream might help expand a local festival, attract a theatre production or major sporting event to the region to bring more visitors to the town, or it might be leadership or business training for young locals.”
It would also involve new social benefit criteria, to allow applications to show their project would make the region a more attractive place to live, or improve community connections.
“Projects will now be assessed against projects of similar size, so small community projects are not competing against huge projects worth tens of millions, for example.”
