Newcastle council will stage a series of picnics and pool parties across the city on New Year's Eve and New Year's Day rather than its traditional harbour fireworks display.
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The council, with backing from the police, cancelled the December 31 fireworks in September amid uncertainty about social-distancing restrictions on the foreshore.
On Sunday, deputy lord mayor Declan Clausen announced that the council would spread out the crowds with a series of events in suburban parks and pools.
The events include food markets at Lambton Park and Dixon Park on New Year's Eve from 3 to 8pm, including roving entertainment and children's activities.
Mayfield, Stockton, Beresfield and Wallsend pools will host events on New Year's Day from 10am to 4pm, including inflatables, food trucks and entertainment.
Standard pool entry fees will apply.
New Lambton's Richley Reserve will have entertainment, children's activities and a "sensory zone" for people with disabilities on January 1 from 10am to 4pm.
Cr Clausen stood by the council's decision to cancel the fireworks, even though the NSW government has started to ease restrictions.
"Thirty thousand people attended the fireworks event last year. While they're dispersed along the full extent of the foreshore, the issue is getting people home safely at the end of the event," he said.
"Naturally, on a peninsula there's those crush points that happen with transport.
"The advice from the police is that that couldn't be undertaken in a COVID-safe manner."
He said the New Year's Eve celebrations would likely return to the foreshore next year, depending on public health orders at the time.
"My view is the foreshore should remain the cornerstone of our New Year's Eve events going forward," he said.
"I would love a midnight celebration. There's lots of constraints about making that happen, not least funding, but also the various approvals."
The council will work with pool operators and police to control crowd numbers on New Year's Day in line with COVID-19 restrictions.
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