More federal money for local government

At the second meeting of the Australian Council of Local Government in Canberra last week the Prime Minister, Kevin Rudd, gave another $220 million to Australia's 565 local councils for libraries, community centres, sports grounds and other local infrastructure. There is another $25 million in a fund to drive reform in asset management and financial planning and encourage regional co-operation between councils in delivery of services.

That brings to $1.245 billion the amount of economic stimulus funds provided by Canberra to councils since November and comes on top of $200 million in interest-free infrastructure loans for NSW councils announced in the state budget.

"This is the most significant advancement in local government funding in almost a decade," said the president of the Australian Local Government Association, Geoff Lake. "We know that local government across the country faces a growing infrastructure funding deficit of more than $14.5 billion and that somewhere between 10 to 30 per cent of councils are facing bankruptcy unless there is urgent reform to local government funding."