The future of the Williamtown Special Activation Precinct is uncertain after the state government announced a review of the massive economic development project.
The precinct, announced in 2020, was touted as having the potential to unlock hundreds of millions of dollars of private sector investment and create 4300 new jobs over the next 40 years in the defence, aerospace, advanced manufacturing, commercial, freight and logistics industries.
The previous state government committed to streamlining planning approvals and tailoring infrastructure investment in areas such rail, roads and drainage to support the precinct's establishment on 10,000 hectares of land, much of which was contaminated by PFAS.
The project was also meant to act as a catalyst for regional infrastructure projects including the Newcastle container terminal, the Newcastle Airport expansion and Hexham to Fassifern freight bypass.
"The precinct is strategically located between the two global gateways of Newcastle Airport and the Port of Newcastle. Newcastle Airport is significant for unlocking the potential of the Hunter Region's tourism industry and also providing an opportunity for the region to export services, goods, and skilled labour," a draft masterplan said.
The Williamtown project, which was scaled back to 135 hectares in 2021, is one of six Special Activation Precincts around the state.
The projects were being funded as part of the $4.2 billion Snowy Hydro legacy fund.
The government announced a comprehensive and independent Strategic Infrastructure Review of the state's capital infrastructure program earlier this year.
"Each Special Activation Precinct is being reviewed as part of this process," minister for regional NSW Tara Moriarty said on Tuesday.
"Initial findings and recommendations will be delivered to support the 2023-24 NSW State Budget, and a final review report will be prepared for consideration by Cabinet."
Work on the Williamtown masterplan is well advanced.
Discussions have taken place in recent months with residents whose properties needed to be acquired for the project.
Port Stephens mayor Ryan Palmer described the review as "very concerning".
"To lose a project as big as the Special Activation Precinct would be a great loss to the whole region, if not the country," he said.
"It doesn't mean that we won't have a great defence aviation industry because we will still have the Astra aerospace precinct, but we should be looking at something much grander than that.
"Just because there's been a change of government doesn't mean we should miss out as a region."
Newcastle lord mayor Nuatali Nelmes said she believed the review was needed.
"We welcome the minister's review for the special activation precinct. In its proposed form it was a missed opportunity to tap into the strategic work already done by the airport in terms of job creation and PFAS remediation," she said.
Newcastle Airport chief executive Peter Cock said he was optimistic about the economic development of the Williamtown area, regardless of whether the Special Activation Precinct proceeded.
"We have two buildings in our new Astra Aerolab business park going through the development application process now and are actively working with a number of companies on building them bespoke facilities," he said.
"This includes active discussions about community facilities like a training and education centre to provide the skilled staff to support growth in the defence and aerospace sectors and help the Hunter transition.
"The airport the region deserves is one that supports industry, helps create jobs, and is a vibrant part of the Hunter. So regardless of what happens, we'll be doing our bit to make it happen."
Federal Paterson MP Meryl Swanson said she was surprised to learn the precinct was under review on Monday.
She added she was disappointed that dozens of residents whose lives had been put on hold by the project had not been advised.
Cabbage Tree Road resident Jenny Robinson said she had not been aware of the review until she was contacted by the Newcastle Herald.
"Neighbours aren't talking to each other because they are under non-disclosure agreements," she said.
"To be honest, I don't care if it goes ahead or not because they are talking about only giving us just terms which won't buy us another property similar to what we have got now. They are not even in the ballpark and at our age we can't borrow."
