The Federal Government has a threatened to ‘blackball’ councils that finish Commonwealth-funded infrastructure projects behind schedule or over budget.


The approach by the Federal Government follow recommendations made by the Auditor-General that funding from the $1 billion Regional Development Fund (RDF) be allocated only to councils capable of delivering complete projects on time and on budget.


The hard-line decision comes as the previous $1.1 billion Regional and Community Infrastructure Program was found to be riddled by slow decision making and spending by the local governments that received the federal funding.


The funding from the new RDF initiative will now only be allocated on the grounds that the projects that will receive Commonwealth funding will be ‘ready to proceed’ by the time the money is billed.


The full ANAO report, The Establishment, Implementation and Administration of the Council Allocation Component of the Regional and Local Community Infrastructure Program, can be found HERE.