Cronulla MP Mark Speakman has supported a state government decision that will mean "Shark Park" having to wait indefinitely for a promised upgrade costing about $90 million.
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"I'll always will stand up for the people of Cronulla and have the shire's interests front and centre, but I recognise that at the moment the government has to prioritise supporting families and communities recovering from devastating floods (on the back of COVID, drought and fires)," Mr Speakman said in a statement.
The Sharks have been preparing plans to upgrade the ET Stand and build a Centre of Excellence at PointsBet Stadium following a verbal commitment by the government to provide between $250 million and $350 million on stadiums in Cronulla, Manly, Leichhardt and Newcastle.
That agreement was tied to the league's commitment to stage the NRL grand final in Sydney until 2042
Premier Dominic Perrottet advised the NRL on Tuesday night funding priority would now given to implementing requirements stemming from the floods inquiry, and the investment in suburban stadia would be "staged".
This prompted an angry response from Australian Rugby League Commission, Peter V'landys, who said, "I find it appalling that they're using human tragedy of the floods to renege on an agreement".
Mr V'landys called on MPs representing the affected areas to stand up for their local communities.
Mr Perrotet's statement said: "The NSW Government remains committed to upgrading suburban stadiums however following recent natural disasters and the COVID-19 pandemic, it is appropriate that further investment in stadia is staged."
"The government has just received the Floods Inquiry Report, which will likely require a significant cost to the taxpayer, and I note right now there are still 1366 people without a home in NSW due to flooding."
"It should come as no surprise that my top priority is therefore supporting those devastated by the major floods across NSW."
"The NSW Government has already invested significantly in every aspect of rugby league, with more than $1.8 billion delivered for grassroots programs, matches in regional NSW, Centres of Excellence for West Tigers, Newcastle Knights, Manly Sea Eagles, South Sydney, Sydney Roosters, Canterbury-Bankstown, St George-Illawarra, Parramatta, NSW Rugby League and stadiums in Sydney, Parramatta and Penrith."
"The new state of the art Allianz Stadium will open next month, Parramatta has a new modern stadium and there is a commitment to build a new Penrith Stadium so that the Western City has a world class sporting venue."
"Sydney will always be the home of rugby league and if Peter V'landys wants to take the Grand Final away from its home, then he can explain that to the fans."
Mr V'landys said the government had reneged.
"We shook hands. We looked each other in the eyes and we did a deal," he said on morning radio.
Later, at a media conference, he said, "To use the human tragedy of the floods to weasel and spin your way out of a commitment takes it to another level. It's complete spin."
The ARL is now considering whether to move this year's grand final away from Sydney.