Updated
The controversial expansion of Newcastle's art gallery could be shelved, with three Newcastle councillors moving to get the multi-million project taken off the council's books.
A rescission motion from lord mayor Jeff McCloy and councillors Lisa Tierney and Andrea Rufo will go before council on Tuesday night.
They say the organisation's "worsening financial position" means all decisions made since 2007 on the $21 million gallery redevelopment should be rescinded.
They want "all plans put on hold until council has achieved an operating surplus".
The trio wants council to write to the Federal Government requesting it modify the terms of its promised $7 million contribution to allow the project to proceed in the future.
But Federal Newcastle MP Sharon Grierson says that is not an option.
"When I hear today there's a rescission motion that says, 'oh, we rescind all that, we're not going to proceed with the art gallery," she said.
"Federal Government could you just let us keep that $7 million anyway, indefinitely?'
"The answer is, not in my hands, but the answer is no.
"There is a precedent but the Auditor General has the power and it's no. Unless it goes for the project as contracted it doesn't proceed."
Earlier this week councillor McCloy resigned from a council committee overseeing the project, saying it is irresponsible to pursue the upgrade.
The committee chairman Councillor Tim Crakanthorp says he is still determined to push for $7 million in State Government funding.
He says it is a crucial capital works project.
"We've got $7 million from the Federal Government," he said.
"It's highly likely we'll now lose that money.
"So what sort of financial management is that?"
Gallery Foundation president Rob Henderson says he is concerned councillor McCloy now has the numbers to see the rescission motion passed.
"The importance of those three (councillors) being involved is that we were passing our resolutions to continue this with the support of Andrea Rufo, as an independent councillor," he said.
"Councillor McCloy is letting us know in no uncertain terms that now Andrea Rufo is voting with him.
"So, he's making it very clear to us that this motion will be passed on the numbers."
Mr Henderson says the community has raised around $1 million.
"The council, if they pass this rescission motion, will be flying in the face of the community's support."
Topics: arts-and-entertainment, urban-development-and-planning, federal---state-issues, newcastle-2300
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