NSW Local Government Minister Don Page has told Parliament today that councils with ailing infrastructure will benefit from millions of dollars in interest subsidies offered by the NSW Government under the Local Infrastructure Renewal Scheme.

The five-year, $70 million Local Infrastructure Renewal Scheme will pay the first 4% of the interest on significant loans that NSW councils take out specifically to pay for the maintenance of infrastructure projects such as roads, community halls, libraries, paths, parks, sports fields and water facilities.

Mr Page told Parliament that the $70 million in interest subsidies offered under the Scheme is expected to unlock between $750 million and $1 billion in infrastructure spending by councils, which the presidents of the Local Government and Shires associations have both supported.

“The Local Infrastructure Renewal Scheme is a key aspect of the NSW Government’s Local Infrastructure Backlog Policy and will help NSW councils get on with the task of reducing the vast backlog of infrastructure projects in their communities,” Mr Page said.

“The Scheme provides interest subsidies to councils to help cover borrowing costs on the loans required to tackle the infrastructure backlog – so, rather than councils carrying the burden of interest payments alone, the NSW Government will pay the first 4% of the interest of the loan.

“I am pleased that the presidents of the NSW Local Government and Shires associations, Keith Rhoades and Ray Donald, have welcomed the Scheme and said that it will encourage their councils to make greater use of borrowings to accelerate investment in infrastructure.”

Councils can now contact the Division of Local Government to take advantage of the Local Infrastructure Renewal Scheme. To be eligible for assistance, councils will be required to have their finances assessed by NSW Treasury Corporation (TCorp) and must lodge their final applications for assistance under the Scheme with the Division by Friday, March 30.

“The Scheme will also assist councils on matters such as better use of debt funding, exploring various borrowing options, and each council’s borrowing capacity,” Mr Page said.

“That will ensure value for money from the projects, while minimising the risk on NSW taxpayers’ money, and the NSW Government’s bottom line.”

More information on the Local Infrastructure Renewal Scheme is available from the Division of Local Government and at their website, www.dlg.nsw.gov.au.