“The recommendations made in the report are likely to lead to a less efficient and ineffective program that will favour large population centres and do little to stimulate regional community growth,” Mr Truss said.

“The key regional development role of the Area Consultative Committee (ACC) network would be greatly diminished if departmental officers become solely responsible for providing assistance with the development of applications, as recommended.

“An army of Canberra-trained field officers telling people, ‘I’m from the Government and I’m here to help’ would be laughed out of town in Alpha, Ouyen and Tumbarumba.”

Application assessments would be relegated to a new level of bureaucracy.

“The future of ACCs must now be in doubt," he said.

"The long established role of ACCs undertaking their own local assessment and making preliminary recommendations based on local conditions is to be overtaken by an assessment team of Government representatives.

"Local circumstances would not be considered when assessing applications.”

Mr Truss said that small community organisations were the backbone of rural and remote communities and the recommendations.

The report would make it difficult for them to apply for funding without the support of their local Council.

“With forced amalgamations, we have seen Local Government become more and more remote from rural communities.

"Small organisations would find it very difficult to be successful in a grants program competing against applications drafted by city consultants.”

“Struggling country communities need this program the most, but they are the least likely to receive funding if the proposed changes are made.”

The exclusion of private sector applications from the program demonstrated that the Committee’s majority does not understand the role of local business in sustaining and growing local communities.