The annual report from Regional Development Victoria (RDV) indicates a significant reduction in funding for regional development, with grants slashed by $15 million, or 11 percent, compared to the previous year. This decline continues a troubling trend, as the total grants pool has fallen dramatically from $370 million four years ago to just $118 million in the last financial year, representing a staggering decline of 70 percent.
The report also highlights a sharp increase in employee expenses at RDV, which reached $27.9 million in the last financial year. This figure marks a 17 percent rise from the $23 million spent the year prior. Critics argue that while regional Victorians are shouldering higher costs for public services, they are receiving far less in terms of development support.
Danny O’Brien, the Leader of The Nationals and Shadow Minister for Regional Development and Liveability, has criticized the Labor government for neglecting the needs of regional communities. “The great divide continues. Labor is leaving regional Victorians out in the cold,” Mr. O’Brien stated. He further emphasized the importance of these grants, pointing out that they play a crucial role in supporting jobs and infrastructure in local economies.
“It is impossible to justify a 70 percent cut in grants for regional development across the past four years,” O’Brien added. His concerns extend to the rising staffing costs at RDV, questioning the logic behind increased employee expenses when the output in terms of grants and programs has diminished. “If RDV is delivering less grants and programs, why is it spending more in wages? Clearly, there’s less work to do,” he remarked.
This situation presents a challenging duality for residents in regional Victoria. As funding for development shrinks, the financial burden on the public increases, raising questions about the management of public resources. O’Brien characterized this as a “double-edged sword,” asserting that regional Victorians are receiving less while paying more for services that should be fostering growth and development.
The implications of these funding cuts extend beyond mere numbers; they affect the livelihoods and futures of individuals and communities throughout the region. As local economies struggle, the need for effective and targeted support becomes increasingly pressing. The ongoing debate highlights the broader conversation about resource allocation and the priorities of the state government in supporting regional development.
The report’s findings have sparked calls for reassessment of funding strategies to ensure that regional areas receive adequate support to thrive. As the situation develops, the focus will remain on how the government addresses these challenges and the potential impacts on regional communities moving forward.
