JULIA GILLARD'S $10 billion boost for the regions, put together to win the support of the rural independents, includes a mix of new money, repackaged promises and local handouts.
And, at no cost to itself, the government will also ensure that city users of the National Broadband Network subsidise those in the country, meaning that all customers pay the same for high-speed internet access.
The major new injection of money is an $800 million Priority Regional Infrastructure Program to be spent in the five years to 2016.
This funding will go towards local projects identified by regional communities.
Much of the rest of the package involves carving out a specific one-third share of existing programs for the regions. The government will allocate at least a third of its budgeted $123 million to upgrade health services to regional areas.
It will do the same with a $200 million pledge to pay for vocational training, a $388 million policy to reward the country's most improved schools, and a $47 million policy to help provide principals more autonomy in running schools.
The Prime Minister has also dipped into the government's existing funds, established to pay for future investments in health, hospitals and infrastructure, to provide promises for outer areas.
A new round of payments from the $1.8 billion Health and Hospital Fund will be exclusively for regional Australia. A $500 million round of funding from the Education Investment Fund will also be sliced off for the regions.
''In total, this means, for regional Australia, they can look forward to benefits in the order of $9.9 billion,'' Ms Gillard said.
''But that's a fair share, it's been worked through with Mr Oakeshott and Mr Windsor and I thank them for working through that with me and [Treasurer] Wayne Swan.''
To ''drive'' the regional funding program, the Prime Minister offered the independent MP Rob Oakeshott a ministry, but he has not yet accepted the offer.
Mr Oakeshott and Tony Windsor said both sides offered very attractive packages to win their support.
Mr Windsor has also won a $20 million commitment for a new teaching and training facility at Tamworth Hospital, in his electorate of New England.
And Mr Oakeshott has extracted $35 million to accelerate work on the Pacific Highway between Kempsey and Port Macquarie, in his electorate of Lyne.
Another $20 million will pay for a new university campus on the NSW mid north coast, provided it is agreed to by the Education Investment Fund. And if the Health and Hospital Fund agrees, the Port Macquarie Base Hospital will receive a $75 million expansion.
The independents also won a concession on the NBN, ensuring that regional areas will be the first to receive services under the new system.
Ms Gillard defended the cross-subsidisation of broadband: ''Whether you're on the broadband in Tamworth or on the broadband in CBD Sydney, seeking to communicate with another business in CBD Sydney, the wholesale price for your broadband will be the same,'' she said.
Tony Abbott agreed that there were occasions when city users should subsidise rural users of telecommunications services.
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