Northern Grampians Shire Council suspends projects, reallocate funds across shire

Council have explicitly said the projects on hold are still a priority and funding opportunities would be explored to get them off the ground in the future.

At the June Council meeting, a recommendation was passed to withdraw the following projects; Central Park, Stawell Hardstand Surface Surrounds, Market Square, St Arnaud Stage #3 - Carpark, Sundial Ave & Bellfield Crescent, Halls Gap - Kerb & Channel, Fenwick St, Deep Lead - Town Street Sealing from the Local Roads and Community Infrastructure Fund Round 3.

By withdrawing the projects it would see almost $1m in funding freed.

The funding is proposed to be realoccated to North Park, Stawell, Lighting for Soccer and Athletics Track, Stawell Library Redevelopment, Lord Nelson Park, St Arnaud Sports Lighting and meet with the expected budget shortfalls of the projects enabling the project deliverables to be achieved.

Council shared in its meeting that over the past 12 months the construction industry across Australia has seen an overall increase in cost of around 8 per cent in the delivery of non-residential construction and civil works.

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Recent experience has shown that in particular cases the council has seen up to 75 per cent increase over 12 months, far above the industry. The recent significant price increases across the sector were unforeseen at the time when many projects were developed, and prepared for budgets and grant applications.

This leaves some of council's projects at risk of either not meeting satisfactory outcomes or over expenditure against the budget.

Cr Lauren Dempsey moved the motion stating it was both the cost and availability of products that formed part of Council's decision.

"The significant costs have been unforeseen and it wasn't budgeted for at the time projects were in the development," she said. "We've worked with council staff on the prioritisation of key projects. The other proposed projects will not be cancelled. They will just be postponed for another time."

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