Australia's local councils will be asked to do their bit to shield the economy against recession by receiving $300 million in extra funding on the proviso they spend it as soon as possible.
The Prime Minister, Kevin Rudd, will announce the funding today at his inaugural Council of Australian Local Govern-ments in Canberra, to be attended by an estimated 565 mayors and shire presidents.
The money will be distributed as widely as possible and spent on small community infrastructure projects that have been approved and are only awaiting funding.
All the money will be allocated this financial year to ensure it is injected into the economy rapidly and helps shore up employment.
It is additional to the standard $466 million in federal grants for this quarter that councils will also receive this week.
Mr Rudd will hail the spending as part of his economic stimulus strategy, joining the $10.4 billion in handouts which begin in December, car industry funding, and the release from next month of $26 billion locked away in three funds for big infrastructure projects.
In more bad news for the economy, Australia's biggest export partner, Japan, went into recession yesterday.
Before leaving Washington where he attended the Group of 20 summit, Mr Rudd said the $10.4 billion package needed to be spent quickly.
"There's one clear stated policy objective - to boost domestic consumption now. Not in six months' time, not in 12 months' time, now," he said.
The Finance Minister, Lindsay Tanner, said he hoped there would be no need for another stimulus package because that would mean the global economy had deteriorated further than forecast.
"But we can't be certain those forecasts will be proved right and if things do deteriorate further, then clearly we'll have to think again."
Paul Bell from the Local Government Association estimated the maintenance backlog in local government infrastructure would cost $15 billion alone.
The Lord Mayor of Sydney, Clover Moore, will use today's summit to further her push for so-called green infrastructure.
"We need to promote a shift to public transport, cycling and walking as an alternative to using private motor vehicles to reduce both congestion and greenhouse gas emissions," Cr Moore will say in her speech.
"It's clear this is the most compelling infrastructure issue for Sydney."
Cr Moore is holding out for a big slice of the $26 billion funding to fund two inner-city, light-rail loops and a regional cycling network.
One item on the agenda will be constitutional recognition of local government, which Labor promised before the election.
The Nationals Senate leader, Barnaby Joyce, supports the push but has also called for the states to be abolished.
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