LGAQ sits on asset lease fence

The money for the program would come from the Strong Choices asset leasing program.

LGAQ CEO Greg Hallam has welcomed the promise, calling it a sign of the government's commitment to rural and regional areas.

"We don't have a policy on privatisation," he said.

"The government has been upfront and we give them a 110 per cent mark on holding a referendum on this.

"If they're returned they will clearly have a mandate."

Mr Hallam said some members were philosophically opposed to asset leasing, while others were just as adamant that government shouldn't own assets.

He noted that it was regional Queensland that was most concerned about jobs and guaranteed electrical supplies.

"But you can't get a better investment than a road, and road funding is precarious in the Gulf, the north west, the south west and even the central west. TIDS money was cut and then frozen for the last three years. It's been tough times for local government as money dried up."

There has been no lessening of intensity from the LGAQ or some of its mayors as far as opposition goes to making R4R money available to state government agencies.

In October, at its annual conference in Mackay, councillors from across the state voted to support a return to the original intent of the funding program, which supported local government regions impacted by resource sector development.

President Margaret de Wit said then that councils rejected the watered-down version introduced by the state which made state government bodies eligible for the funding pool.

One of those opposed is Western Downs Mayor Ray Brown, who called the changes a "pork barrelling exercise" in 2014.

He said R4R had been intended for bricks and mortar projects in communities where the impacts of mining were most being felt.

"You tell me someone on Bribie Island is entitled and you can hang me," he said.

Deputy Premier Jeff Seeney retorted that Royalties for the Regions was not "cash for councils" but about delivering projects for regional Queenslanders.

"The Western Downs Regional Council has had the most projects approved under this program of all councils in Queensland," he said.

"They have received over $17m for 17 projects and have failed to deliver over half of them, despite receiving that money up to two years ago.

"These figures demonstrate that this council hasn't delivered many of the projects promised to its ratepayers and is now trying to deny other groups access to the program.

"I don't care who delivers these important projects to regional Queenslanders as long as they're delivered."

Cr Brown was quick to defend his council's use of R4R money.

"A total of 17 projects with a total value of $37.9m will be delivered, with the state government only funding $17.3m," he said.

"The rest of the money comes from council and the resource sector.

"A number of projects were delayed by wet weather and one was significantly delayed thanks to Strategic Cropping Land paperwork, but we have 13 projects practically completed and the remaining four on target for completion prior to funding deadlines."

He added that his council's aim was to work in partnership to leave legacies for communities, whereas the government changes were a case of cost-shifting.

Mr Hallam said that if the LNP was re-elected, the LGAQ would remain steadfast on its desire to see R4R money distributed to mining communities and the provincial towns that service the mining industry.

"That's still our priority," he said.