The Urban Development Institute of Australia (UDIA WA) has welcomed the state government’s announcement today that there will be extra support for local governments accessing Western Australian Treasury Corporation (WATC) loans to progress critical local infrastructure projects.
“This is a vital move by the state government to boost economic growth, maintain jobs and benefit local communities during what are obviously very challenging times,” UDIA WA CEO Tanya Steinbeck said.
“UDIA WA has been working closely with local governments and the Department of Planning, Lands and Heritage (DPLH) for the last few weeks to identify local infrastructure projects that can be brought forward to support the economic recovery,” Ms Steinbeck said.
“Specifically, we have been looking to pinpoint projects that are already in the pipeline, that are primarily funded by existing Development Contribution Schemes (DCSs), that can be brought forward now,” Ms Steinbeck said.
“We are talking about ‘shovel ready’ projects that will now be able to secure that extra financial boost they need to get started straight away, at a time when they are needed most,” Ms Steinbeck said.
Local governments manage funds collected from new development to provide local infrastructure such as parks and roads under Development Contributions Schemes (DCS).
“In areas where development is yet to be fully complete and therefore full contributions have not yet been made, the availability of finance at a historically low rate allows local government to get on and deliver these community infrastructure projects immediately,” Ms Steinbeck said.
“This win-win situation will come at no cost to local governments, as future development contributions can be used to service these loans,” Ms Steinbeck said.
“It is important to recognise that DCSs are primarily funded by private developers who are contributing to these schemes on a per lot basis for new development,” Ms Steinbeck said.
“It is also worth noting that often the roll out of community infrastructure under these schemes can take years to be delivered because the local government waits to receive the full amount into the fund prior to commencement – which means waiting until a development area is completely built out,” Ms Steinbeck said.
“It can sometimes take up to ten years or more, to get community infrastructure delivered under these schemes,” Ms Steinbeck said.
“To bring these projects forward via the local government accessing a low risk loan provides an economic boost and it ensures that communities are getting the local infrastructure they deserve, faster,” Ms Steinbeck said.
Ends.
Contact:
Gemma Osiejak
Executive Manager Communications and Marketing
UDIA WA
P: 0421 506 819
E: gosiejak@udiawa.com.au