PETER Walsh, MP for Murray Plains, has criticised the state government for allegedly taking nine per cent of a $2 million federal blackspot grant earmarked for a road intersection project in Mansfield Shire.
In a press release last week, Mr Walsh said that despite not providing any state funding or managing the project, the state government took a portion of the federal funds under the guise of "internal departmental costs."
Mr Walsh quoted Mansfield Shire Council CEO Kirsten Alexander, who recently addressed a parliamentary inquiry on the issue.
“It was a big blow," she said.
"That nine per cent was essentially the project management costs.
"It was a surprise and not a welcome one."
The project involves an intersection on Mansfield-Whitfield Road, a known blackspot that has been the site of several serious accidents.
The government is said to have taken $176,000 from the grant, a move that has raised concerns within the community.
“For a small town like Mansfield, that’s a lot of money,” Ms Alexander told the inquiry.
She questioned the government's actions, given it was neither managing the project nor contributing financially.
"I don’t think that’s value for money," she added.
Mr Walsh described the government’s actions as "an insult to the Mansfield community," criticising it for taking funds "for doing virtually nothing."