A Commonwealth grant of $7.4 million will be provided to the Livingstone Shire Council to upgrade access roads to Shoalwater Bay Training Area, Defence Minister Robert Hill announced today.

"This grant fulfils a pre-election promise made by Government and will assist in sustaining this important training area and further enhance Defence capability," Senator Hill said.

"The Government appreciates that Shoalwater Bay is an important heritage and environmental asset and Defence is aware of its responsibility to protect and manage this land."

The Department of Defence and Livingstone Shire Council signed the agreement in a ceremony at Yeppoon on Friday.

Defence primarily uses two roads for access to Shoalwater Bay Training Area (SWBTA) - Raspberry Creek Road and Rossmoya Road. A third route - Stanage Bay Road - has been closed to general military use since 1999, with the exception of agreed use during major exercises.

Defence has provided contributions to Livingstone Shire Council to maintain access roads to Shoalwater Bay Training Area for a number of years, including $1 million over the past five years.

Livingstone Shire Council has agreed to undertake a general works program on a number of culverts, floodways and bridges on the three Roads before 30 June 2007.

Defence will contribute both to road upgrades (Rossmoya and Raspberry Creek Roads) and to sealing of parts of Raspberry Creek, Rossmoya and Stanage Bay Roads.

"The Government funding will improve the roadways for the entire length of both Rossmoya and Raspberry Creek Roads, with some key sections also sealed," Senator Hill said.

"In addition, several key sections of Stanage Bay Road between the Bruce Highway and the Pine Mountain gate will also be sealed, using priorities provided by Livingstone Shire Council.

"This grant will enable the Livingstone Shire Council to focus its own resources on meeting the needs of its ratepayers and enable Defence to continue to safely access Shoalwater Bay for training purposes."

Defence and Livingstone Shire Council have agreed to have the roads fully upgraded before the commencement of the major bilateral training exercise with the United States, Exercise Talisman Sabre 2007.