Member for Northern Tablelands Richard Torbay is pressing the government to reallocate the residue of its failing $49.6 million Regional Relocation Grant (RRG) scheme to other regional development programs.
Fewer than 50 households had signed up for the $7000 RRG in its first three months from July this year, Mr Torbay said.
When the scheme was announced, it was expected the take up would be 10,000 a year.
Following an answer from Treasurer Mike Baird to a question he put in Parliament last week, Mr Torbay said he was concerned the government planned to consign any unspent RRG funds into consolidated revenue.
“The Treasurer failed to give the assurance I was seeking and would not give a clear answer to the question,” he said.
“That makes me very suspicious that we could lose funding, which was specifically earmarked to boost population and economic development in regional areas.
“It is a four-year program but the response of sea and tree changers so far has been less than enthusiastic.
“Critics of the scheme are saying the access to the $7000 is too restrictive to attract many takers. One issue is that many people initially prefer to rent their homes in Sydney rather than sell, because they want first to ensure their relocation has been successful.”
Mr Torbay said he had supported the scheme announced in this year’s state budget.
“Obviously it’s not hitting the mark in the way we all had hoped,” he said.
“But if the government was prepared to use the scheme as the vehicle to assign $49.6 million over four years to promote regional growth in this state, then that money should be spent for that purpose.”
Mr Torbay said he has also fielded concerns about the stall in funding following the government’s announcement it would rationalise 30 existing regional and business programs to two – the State Investment Attraction Scheme and a Regional Industries Investment Fund.
“Implementation funding has been very slow to flow and many businesses are frustrated by the lack of clarity on what assistance is now available and whether the changes represent overall funding cuts,” he said.
“I urge the government to ensure the programs are effective and to let us know whether all funding pledged to regional development will be spent for that purpose and that the new structure will be adequately funded and resourced to produce results,” Mr Torbay said.
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