Coalition government secretly cut $100m from Destination NSW

New South Wales is at risk of losing major events like the Sydney Festival, Fashion Week, and the Australian Open of Golf after $100 million was secretly cut from Destination NSW by the previous government.

The Coalition government secretly cut $100m from Destination NSW when they were in power, putting major events at risk.

New South Wales is at risk of losing major events like the Sydney Festival, Fashion Week, and the Australian Open of Golf after $100 million was secretly cut from Destination NSW by the previous government.

Even the Mardi Gras could be under threat unless the Minns government finds more cash to pay for it.

Departmental briefings given to the new government, seen by The Daily Telegraph, have revealed that the Coalition slashed the State Significant Event fund in half last year.

The initial budget was $200 million over four years, but was halved to $100 million by the Perrottet government’s expenditure review committee in October. The cuts were never publicly announced, the documents show.

The Telegraph understands that due to the cuts, Destination NSW is unable to enter into a multi-year investment agreement with owners of a spate of major events.

Events like Mardi Gras could be at risk due to the funding cuts. Picture: Newscorp Daily Telegraph Gaye Gerard

These include the Sydney Festival, Sydney Gay & Lesbian Mardi Gras, Handa Opera on Sydney Harbour, Australian Fashion Week, Australian Open of Golf, Narooma Oyster Festival and a pipeline of Australian premiere musical theatre productions.

Jobs and Tourism Minister John Graham committed to finding extra the money for Mardi Gras but said other events might not get any cash.

“A range of events will be impacted,” he said.

“Of course we will find a way to fund next year’s Mardi Gras, but it leaves other events at risk.”

“As a new government we are committed to bringing vibrancy back to Sydney. We will look for solutions through the budget process,” he said.

Australian Fashion Week may have an uncertain future in Sydney. (Photo by Stefan Gosatti/Getty Images)

The Telegraph understands that the Destination NSW budget was bolstered as part of a Covid stimulus package before being cut after the pandemic,

“The adjustments are a reallocation of unspent COVID surge funding to areas that required urgent support,” former Treasurer Matt Kean said.

“The changes were published in the half-year budget update, and also accounted for in the pre-election budget update that was accepted by the new Treasurer Mr Mookhey.”

The revelations come after soccer superstars Bayern-Munich pulled out of the A-League All-Stars match because the government refused to pay their appearance fee, said to amount to a few million dollars.

Mr Graham blamed the Coalition’s funding cuts for the All-Stars game no longer going ahead.

Spending on major events is understood to part of a wide-ranging review into government programs currently being undertaken by Treasurer Daniel Mookhey and Finance Minister Courtney Houssos.

A range of spending measures could be axed in NSW’s September budget in a bid to save money.