NSW Labor says it would utilise $21 million of unspent coastal grant funding the state government is sitting on to fund the long-term restoration of Stockton beach.
Describing the situation as "shameful", Newcastle MP Tim Crakanthorp and Shadow Minister for Local Government Greg Warren officially announced on Wednesday that if Labor wins the March election it will commit $21 million of unspent grant funds for a mass sand nourishment program to save Stockton from crippling erosion.
Mr Warren said it was "absolutely devastating" when he arrived in Stockton several years ago to see the suburb's only child-care centre "getting washed away, to see a community getting washed away".
"The most shameful thing about this is there is an estuary fund that the state government controls with more than $70 million," he said.
"For some time only half of that has been used when that money could have been been invested here in Stockton, as well as other areas along the coast. But without any doubt, it is a priority to save this community."
NSW Labor's election pledge to use the unspent coastal and estuary grant funds prompted Stockton Community Group chair Melanie Taggart on Wednesday to call on the Coalition to match Labor's election commitment to Stockton.
Former Coalition deputy premier John Barilaro told the Newcastle Herald back in August 2021 he would be "more than happy that the state picks up a chunk of the tab" for mass sand nourishment, but the project remains unfunded.
Deputy Premier Paul Toole declined to answer on Wednesday if a re-elected Perrottet Coalition government would commit the $21 million needed.
"It's embarrassing for Labor leader Chris Minns who knows the NSW Liberal and Nationals government has spent more time with Newcastle council and the local MP working on solutions for Stockton Beach than he has," Mr Toole said.
The issue of unspent funds was first reported by the Newcastle Herald in May 2021 after documents were released under freedom-of-information laws showing that $34 million of the $72 million Coastal and Estuary Grants Program remained unspent since the government set it up in 2016 to help councils address coastal erosion.
The underspending came 18 months after the state government commissioned consultants to investigate ways to improve access to the five-year funding program.
At the time, Newcastle Labor lord mayor Nuatali Nelmes said it was disappointing the funding pool was significantly underspent given her council had more than $50 million worth of applications rejected for projects it believed were vital to restoring Stockton beach.
Mr Crakanthorp said a NSW Labor government was committed to a long-term solution for Stockton beach that loses 140,000 cubic metres of sand each year due to erosion.
"The community of Stockton for far too long have wanted as concrete commitment to get sand onto this beach," he said.
"Today's announcement is a fresh start. It is a fresh start to get this project rejuvenated, re-energised, get sand on that beach and solve this problem once and for all."
The election pledge came on the same day as the Newcastle Herald reported that coal royalties paid to the NSW government are expected to approach $6 billion this financial year, or $2.1 million more than the $3.8 billion expected at the state budget in June last year.
The vast majority of coal from Australia is exported through the Port of Newcastle and for decades Stockton residents have been calling for an environmental levy on each tonne of coal exported for the restoration and maintenance of Stockton beach.
Experts agree that the crippling erosion is caused by the Newcastle harbour breakwaters, which are state assets, and progressive deepening of the shipping channel. The breakwaters stop the drift of sand from south to north, trapping it at Nobbys.
The Greens announced last month if they hold the balance of power following the March 25 poll, Port of Newcastle and the coal industry would be required to contribute to an environmental levy for Stockton beach.
Greens Upper House MP Sue Higginson said the money to restore the beach should come from "where the harm has been caused".
Labor says if it is elected it will seek a contribution from Port of Newcastle for the mass sand nourishment program.
Mr Crakanthorp said while Labor's commitment was not reliant on Port of Newcastle, discussions were ongoing.
"I've talked to the CEO of Newcastle Port," he said. "They're very happy to sit down if we're elected and look at working together, along with council, along with all the stakeholders to progress this issue."
Mr Carmody stopped well short on Wednesday of commiting to the mass sand nourishment program.
"As leaseholder of the port, Port of Newcastle is an active participant in the Stockton Beach Taskforce, working with the NSW government and Newcastle city council, the primary authorities responsible for the coastal management program," he said.
"We will continue to work with the government of the day."
Mr Toole said one visit from Mr Minns, six weeks before an election, would not get sand back on Stockton.
"I recently committed to having Public Works Authority project manage solutions for Stockton beach - Public Works sits within the Department of Regional NSW; an agency that didn't exist under Labor, which doesn't care about the regions," he said.
University of Newcastle coastal geologist and Stockton resident Professor Ron Boyd said without sand nourishment the beach would eventually be lost.
"It will look like what the seawall has looked like for the past five years," he said. "You won't be able to get onto the beach. You'd be lucky to surf there or fish there."
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