Shayne Neumann (Blair, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Regional Australia, Regional Development and Local Government and Minister for the Arts. Will the minister inform the House of the success of the first round of the Regional Development Australia Fund? What future opportunities are there for local communities from this fund?

Simon Crean (Hotham, Australian Labor Party, Minister for Regional Australia, Regional Development and Local Government) Share this | Link to this | Hansard source

I thank the member for Blair for his question, and I know his commitment to regional Australia. He advocated strongly for his community in this first round of Regional Development Australia funds. These funds came from the government's commitment when it formed office to put significant new resources into the regions. That was delivered on in our first budget, where $4.3 billion was committed to the regions specifically and $1 billion over the course of the next four years was committed to the Regional Development Australia Fund.

The first round of that fund was announced a couple of weeks ago and it received an overwhelming response from both sides of the parliament. Indeed, I have much correspondence from many who sit opposite, quite apart from the great interest that was taken on this side of the House. The members for Herbert, Riverina, Farrer, Gippsland, Goldstein and Sturt all wrote to us asking that proper consideration be given to their particular proposals. The fact is that, whilst the first round was significantly oversubscribed—and there were many in the process that were ineligible because they had not complied with the procedures, and they will get important advice as to how make applications in the future—we increased the payment in round 1 from $100 million to $150 million to accommodate more of these good projects coming forward.

We have also said that we are reinforcing through the guidelines the importance of what we are seeking to achieve, and that is the leveraging of funding—not just through Commonwealth funds but also through state governments, local governments and community groups. We want the proposals that stack up and make a difference in terms of the economic and social diversification within the region. The member for Blair was successful in his advocacy for one of the projects in his region in relation to the Somerset Civic Centre. This is really important to the Esk community because, as it rebuilds, coming out of the devastating floods, this commitment to liveability and community amenity is terribly important.

I am asked also what the future opportunities are. They can be significant. We will be announcing the opening of the second round in November and thereafter we intend for there to be three more rounds before the next election. But those additional rounds will only occur if this House passes the mining resource rental tax. That is a circumstance in which this government is seeking to take the proceeds of the mining boom, from resources that are owned by the Australian people and where there are super profits being made, to reinvest back into our community. The Assistant Treasurer has indicated that part of that will go to super and other parts are going to go to company tax cuts across the board so that we can diversify the economic base out of this resources boom. Some of it will go to infrastructure, including social infrastructure.

That is what is in prospect. I say to all of those members over there urging me that consideration should be given for their electorates and their projects: think carefully about the folly that you are pursuing in this blind saying of no by the Leader of the Opposition. There is a price for saying no. The price of saying no is to deny regions the ability to build themselves, build with confidence, diversify their economic base and sustain their communities. Don't say no; stick up for the regions—because we will.