City of Newcastle and NSW government in stand-off over who's responsible for Stockton's $6.2m sand nourishment project

After decades of inaction, Hunter residents learnt via a flurry of local, state and federal government media announcements in October that the southern end of Stockton Beach would be replenished with sand from Newcastle Harbour inside a year as a result of a new $6.2 million funding package.

The collaborative project to dredge 300,000 cubic metres of sand and move it to Stockton beach, included City of Newcastle committing $1.5 million and the federal government providing $4.7 million in response to a grant application by the NSW government.

But now the Newcastle Herald can reveal that not only is the project under threat after Port of Newcastle confirmed this week extracting sand for beach nourishment was not permitted under its dredging permit, but there is also a stand-off between council and the state over who is responsible for the project and who will manage the works.

Stockton Community Group members described the lack of action after months as greatly disappointing and questioned the collective lack of due diligence.

Co-presidents Alison Rigby and Melanie Taggart called out the "poor planning, execution and management".

"These issues should have been investigated before the NSW government applied for this grant," they said.

"All the photos and press releases were premature."

According to a plan developed by the NSW government, the 300,000 cubic metres of sand was to provide an "urgent circuit breaker in restoring beach margins and buffering against further storms" for up to three years.

The project was designed as a short-term solution to allow authorities more time to source 2.4 million cubic metres of sand that is needed to fully restore the beach.

Newcastle MP Sharon Claydon, who announced the $4.7 million federal government grant in October, described the developments as "infuriating".

She was joined on Wednesday by her state counterpart Tim Crakanthorp who labelled the delays as "ridiculous".

Ms Claydon called on the NSW government, council and Port of Newcastle to work together to ensure the grant funds are spent on Stockton.

"Are we to assume there was absolutely no due diligence done on the application process?" she asked.

"Stockton residents just want this done. We delivered the money and now I hear there are all these hurdles. It was a costed and detailed application, it's hard to understand."

The federal grant was applied for by, and awarded to, the NSW government, to be delivered by City of Newcastle.

The application identifies the state's Hunter Central Coast Development Corporation (HCCDC) as the project manager, which will "facilitate the project from inception to completion".

At the time the grant was announced NSW Deputy Premier Paul Toole's Stockton Beach Taskforce strongly endorsed the project.

City of Newcastle's spokeswoman said it was waiting for the state, as the grant applicant, to determine a project manager, and to confirm ownership for licences and approvals.

"It is appropriate that the proponent of the dredging and placement of sand nourishment, the NSW government, determines the planning pathway and holds all associated dredging approvals. This is in line with the NSW government's successful grant application."

However, a spokeswoman for Department of Regional NSW said council was responsible for the project, including procuring a project manager.

"As the project is still in its early stages, administration of funds, scope of work and delivery are all still being explored," she said.

Stockton Community Group members and residents have written to Mr Toole and the Minister for Planning Anthony Roberts, who oversees the government agency that lodged the grant application and HCCDC, asking for an explanation.

Mr Byrnes said while Port of Newcastle was supportive of the project, it was unable to dredge for sand nourishment.

"Our current licencing provisions under the sea dumping permit and State Environmental Planning Policy (Transport and Infrastructure) 2021, do not provide us with the necessary permission to provide sand nourishment or perform dredging operations that are not required for maintenance purposes," he said.

"For Port of Newcastle to perform sand nourishment activities, the appropriate approvals need to be obtained by the relevant public authority."

Council's spokeswoman said after the grant application was submitted, Port of Newcastle revised earlier advice that it could carry out maintenance dredging operations in the harbour entrance.

"As the grant proponent, the NSW government needs to work with Port of Newcastle to resolve this issue," she said.

"City of Newcastle has progressed the sand placement design work and anticipate having the associated environmental approvals finalised in early 2023 - meaning that once the NSW government confirm a sand source, Stockton will be ready to receive the sand."

Mr Crakanthorp said it was time for action, not bickering.

"This grant application was completed by the state government naming one of their own agencies as playing a part, who are now trying to backtrack," he said.

"The money is there, it should not be this difficult to get the project moving and I have attempted to discuss this with HCCDC on a number of occasions.

"Everyone just needs to do their allocated job, stop the buck passing, stop the delays and get some sand back on this beach."

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