An advocate of Newcastle CBD's late trade restrictions on licensed venues says relaxing similar rules in Sydney's city centre could pave the way for conditions to be wound back in Newcastle.
But the state's liquor and gaming authority says there are no plans to change the so-called 'Newcastle conditions'.
There have been widespread reports in recent days that NSW Premier Gladys Berejiklian wants to introduce legislation to remove the 1.30am lockout in Sydney CBD - except at Kings Cross - to boost night time business in the city.
It comes as a cross-party committee prepares to table a report at the end of this month from its investigation into Sydney's night time economy.
Advocate of the Newcastle conditions Tony Brown said there was nothing stopping the government "putting an extra line" into an amendment of the Sydney lock-out law to also apply changes to Newcastle - where the restrictions are licencing conditions, not legislation.
"We really want the government to emphatically deny the flow-on potential for Newcastle," he said.
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"There are legitimate reasons to be concerned that when they're changing the laws there's a risk that unilaterally the government ... will get rid of the Newcastle conditions.
"We're the shining light to the rest of Australia and the world that have similar problems that it is totally possible to have safety and prosperity in one, rather than trading off. That's where I think we are streets ahead of Sydney."
Australian Hotels Association Newcastle-Hunter spokesperson Rolly de With said it made sense to reconsider some Newcastle restrictions if laws were relaxed in Sydney.
"What the lockout review in Sydney has demonstrated is that good governance of public policy should include appropriate and timely reviews of legislation and regulation," he said.
"Newcastle and our industry has evolved over the past decade and the suggestion that a review of the 'Newcastle Solution' is of concern demonstrates a prohibitionist philosophy, not a legitimate concern for balanced and effective public policy settings.
"Newcastle was euthanized by regulation over a decade ago and it's now time to revisit the environment, to create a balanced, sustainable, vibrant nightlife, along with protecting public amenity."
The Newcastle conditions include restrictions on types of drinks that can be served as well as lock-out and closing times for 14 venues.
During the cross-party committee's third hearing last month, Liquor and Gaming NSW deputy secretary Rose Webb referred to a recent review of the Newcastle conditions, which recommended little change.
Ms Webb told the hearing the review by Jonathon Horton QC was extensive, but "probably it is only a matter of time before we need to reconsider and look at that again".
A Liquor and Gaming NSW spokesperson said on Tuesday there were no plans to change the special licence conditions in Newcastle CBD.
NSW Police Association president Tony King said relaxing restrictions in Sydney or Newcastle would be "a huge step backwards" for community safety.
"Newcastle has led the charge when it comes to sensible alcohol restrictions and the city is a much better, safer and vibrant place as a result," he said.
"Local emergency service workers know all too well how important the alcohol restrictions have been for Newcastle. We can't afford to see them wound back."
NSW Minister for Customer Service Victor Dominello said the Newcastle conditions were not legislated by parliament but were imposed by the Independent Liquor and Gaming Authority, which operated "at arm's length" from the government.
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