Anthony Albanese, Minister for Infrastructure and Local Government, and Alan Griffin, Minister for Veterans' Affairs, have announced the Rudd Government will offer more than $2.1 million towards the $3.4 million new neighbourhood hub on the Mornington Peninsula.

Minister Griffin made the announcement in Hastings with the Mayor of Mornington Peninsula Shire Council, Anne Shaw.

This project will replace the old Hastings Leisure Centre with an expanded community facility.

This federal funding is part of our $800 million Community Infrastructure Program - the largest one-off investment in local infrastructure in Australia's history.

Through the Rudd Government's economic stimulus plan, we are investing in major projects like this to support local jobs and economies during the global recession.

The project, which is being managed by the Mornington Peninsula Shire Council, will act as a central hub and community facility for a range of events and services.

It will refurbish the abandoned Leisure Centre and construct new facilities including a meeting space for local families and groups, a community kitchen, a multi-purpose room and amenities.

This funding builds on nearly $900,000 that the Rudd Labor Government has already delivered for seven local projects in the Mornington Peninsula Shire Council this year.

It brings the Rudd Government's investment in Mornington Peninsula community infrastructure to more than $3 million this year alone.

Nearly 70 per cent of the stimulus plan is infrastructure with construction projects already underway.

More than 3,000 projects are being funded through the Government's Community Infrastructure Program across Australia to support local jobs, stimulate the local economy and make local communities better places to live, work and visit.