The three Katherine region municipal councils will receive more than $1 million in new grants for road and community projects.
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The Federal Government will deliver a $1.8 billion boost for road and community projects through local governments across Australia.
Local totals - Katherine Town Council $288,649, Roper Gulf Regional Council $489,289, Victoria Daly Regional Council $318,243.
The Local Road and Community Infrastructure Program includes $101m in new money, can be used to build community infrastructure such as improving bridges, street lighting, heavy vehicle rest areas and walking tracks.
The government has also brought forward $1.3 billion of the 2020-21 Financial Assistance Grant payment, delivering a $1.8b boost across Australia.
The new federal program is based on the successful Roads to Recovery program where the formula takes into consideration road length and population, and is based on recommendations of Local Government Grants Commissions.
Prime Minister Scott Morrison said local governments were playing a critical role in responding to the impacts of COVID19.
"Our funding boost will help councils accelerate priority projects that will employ locally and support local business and also stimulating our economy," the Prime Minister said.
"These projects will cut travel times, make our communities safer and upgrade the facilities we all enjoy while also getting more people into jobs.
"We know this is going to be vital support, particularly for councils that have faced the combined impacts of drought, bushfires and now COVID-19."
Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack said supporting councils to improve local roads and community infrastructure would have lasting economic and social benefits for communities, particularly those in the regions.
"This package will improve road safety and bolster the resilience of our local road networks, which will get Australians home sooner and safer, no matter where they live," the Deputy Prime Minister said.
"Projects could include constructing or improving bridges and tunnels, street lighting and heavy vehicle facilities such as rest areas.
"Providing support for social infrastructure projects such as new or upgraded bicycle and walking paths, community facilities, picnic shelters and barbeque facilities at parks, will help communities, especially those in regional and remote areas, stay connected."
Minister for Regional Health, Regional Communications and Local Government Mark Coulton said investing in infrastructure and jobs was crucial to helping regional communities rebound from COVID-19.
"Our package enables councils to continue their proven track record of partnering with the Coalition Government to deliver opportunities for locals to be employed and businesses to benefit by providing materials and services," Minister Coulton said.
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