RAC calls for greater investment in local roads

06 August 2009

The RAC has warned that the State Government may need to lift its allocation of funding for local roads in the wake of the global financial crisis.

The State Government has announced the latest allocation of $122.9million to be spent on local government roads – an increase of $6million on last year’s allocation.

RAC Head of Member Advocacy Matt Brown has welcomed the latest round of funding but says the increase simply reflects an increase in revenue to the government from motor vehicle licence fees.

“Under its current agreement with local government, the State government allocates 27 per cent of revenue from vehicle registrations to local roads,” Mr Brown said.

“The budget papers show the government will take an additional $23.4million in registration fees this financial year. So the $6million extra for local government simply reflects its existing share of the revenue.

“It basically means there’ll be more cars on our roads and more revenue from motorists flowing into the government’s coffers.”

Mr Brown said over the forward estimates, the government would reap a $238million windfall from increased vehicle registration fees.

“The Auditor General has already highlighted the disastrous consequences of chronic under-investment in our State road network which now sees us facing an $800million shortfall in backlogged maintenance work,” he said.

“We can’t afford to make the same mistake with roads under the control of local government.

“Many local governments are feeling the pinch of the global financial crisis and are facing falling revenues from their investment portfolios.

“In addition to this, local government in country areas is facing increased road maintenance costs due to increasing traffic from heavy vehicles.

“There is clearly a need for the State government to consider lifting local government’s share of vehicle registration revenue when it renegotiates the agreement over the coming months.”

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