A new road funding agreement has been signed by the Western Australian Government with local governments in Western Australia to deliver more than $800 million across Western Australia over the next five years.

 

In signing the agreement with Transport Minister Troy Buswell, WA Local Government Association President Mayor Troy Pickard said the agreement was welcomed and would provide improved road funding certainty for the sector.

 

The agreement commits the State Government to allocate 27 per cent of vehicle registration charges to fund local roads which comprise 72 per cent of all roads in the State.

 

By the time the new agreement comes to an end in the 2015-16 financial year, it is estimated to deliver more than $800m in local road funding and almost $1.5 billion when combined with the previous agreement from 2005-06.

 

Mayor Pickard said by agreeing to apply the 27 per cent share of vehicle registrations to fund local roads, the State Government was in effect increasing actual funding to Local Governments as the growth in road users exceeds the increase in road works costs.

 

He said even when adjusted for anticipated cost increases using the Road and Bridge Construction Index, the new agreement still equates to a 25 per cent increase in funding for local roads in real terms.

 

Importantly, with more than 20 percent of expenditure on local roads provided by the State, this growth in real terms affords Local Governments the opportunity to reduce the current $1.2 billion maintenance backlog on the local road network.

 

“We welcome the signing of this agreement by the State Government, which provides significant road funding for Local Governments to improve our local road networks and tackle our maintenance backlog,” Mayor Pickard said.

 

“Securing the new agreement with the State Government provides certainty for Local Governments in managing their road works program, delivering this key piece of infrastructure to the community and maintaining it at an appropriate standard.

 

“When you consider that most of the roads in the State, and certainly those on which most of us live,  are local roads, the continued support of the State Government  is crucial to ensure the adequate allocation of funds to enhance and maintain our local roads .”

 

Mayor Pickard said having secured the new agreement on funding local roads WALGA would now continue discussions with the State Government as well as the Road Safety Council on an appropriate funding package to support the Towards Zero road safety initiatives on the local road network.