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Newcastle Council's interim general manager says the redevelopment of the city's art gallery should be shelved until council makes some hard decisions regarding its finances.
Speaking at a public voice meeting last night Ken Gouldthorp said council could not enter into contracts which could send the organisation into insolvency.
But Newcastle art gallery board member Peter Frost says the project would be fully funded if council secured $7 million from the State Government.
Mr Frost says the project risks losing its Federal Government funding if council holds off on the plan.
"We've got $14 million in the bank," he said.
"We start and we just hit the State Government to make some contributions when it becomes available, and we don't need it straight away.
"The amount of money that the state takes out of the Port of Newcastle and Hunter region is massive, and the small amount we're asking for - $7 million - it's a very small amount to pay back to Newcastle."
Mr Frost is worried the plans will come to nothing now that the Mr Gouldthorp is backing away from the project.
"That's pie in the sky from him," he said.
"Council's not that poor.
"We know that they're not trying hard enough to get the money from the state.
"They promised us they'd send a delegation down to the state."
Topics: local-government, federal---state-issues, arts-and-entertainment, newcastle-2300
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