A 'regional facility': Sydney mayor defends $10 million pool grant

Perched on the edge of the harbour and beneath its famous bridge, it would be difficult for the historic North Sydney Olympic Pool to sit any closer to the heart of the city.

And yet the venue's apparent status as "one of the most Instagrammed pools in the world" and its ability to attract school swimming carnivals from "the other side of the bridge" have cemented its position as "a regional facility", North Sydney Council's independent mayor Jilly Gibson says.

Treasurer Josh Frydenberg visited the pool with the mayor of North Sydney, Jilly Gibson, and North Sydney MP Trent Zimmerman during an election campaign stop last April.Credit: Jessica Hromas

The controversy surrounding the "sports rorts" scandal engulfing the Morrison government has spread beyond Federal Parliament to the $58 million revamp of North Sydney's ageing public pool.

Cr Gibson said she was "surprised" to learn a $10 million federal contribution promised for the project was drawn from the government's $150 million "female facilities and water safety stream".

The scheme, announced weeks before the federal election last May, was originally designed to build female change rooms and upgrade community swimming pools in rural and regional areas.

Treasurer Josh Frydenberg made the $10 million election commitment when he visited the pool - in a safe Liberal seat - with North Shore MP Trent Zimmerman and Cr Gibson last April.

Cr Gibson said the funds were "federal government money well spent", particularly given the council was "trying to preserve and improve such an iconic pool, that is part of our Olympic history".

"I maintain [the pool] is a regional facility. It's used by people from all over the state and throughout the country. We have a lot of international tourists coming through the turnstiles every day," she said.

"It's one of the most Instagrammed pools in the world, I believe. It isn't your average suburban swimming pool."

Cr Gibson said the outdated female change rooms hadn't been upgraded since they were built in 1936 and the pool was used for a "wide range of recreational purposes".

"We have schools from the inner west who have their carnivals each year, it's not just schools from North Sydney who have their carnivals there. It's schools from the other side of the bridge. We have schools from regional areas who have their carnivals there," she said.

Phillippe Kubinsky is among 350,000 visitors to the pool each year. Credit: Jessica Hromas

The council last year submitted plans for the $57.9 million overhaul, including upgrades to the existing pools, a new "family leisure" pool and a replacement grandstand.

But the council couldn't afford to fund the project - which has been frustrated by cost blow-outs and delays to the council's previously published timeframe - on its own. The council has allocated $38 million while lobbying state and federal governments to each chip in $10 million.

The federal grant, first reported by the ABC on Wednesday, drew criticism from independent councillor Zoe Baker, who said she was "shocked" and "not aware the council has made any formal application to that funding scheme". In any case, she said, it appeared the inner city council would not be eligible.

Cr Baker said she supported seeking funding contributions from state and federal governments to help fund the redevelopment.

"My big concern is I don't see how it's justified that a metropolitan council like North Sydney should receive funds earmarked for rural and regional areas," she said.

Mr Zimmerman said in a statement the council had identified the pool's restoration as "a critical issue beyond its own financial capacity due to serious structural issues".

"I’m proud that during the federal election campaign I was able to secure a Coalition election commitment to contribute $10 million to North Sydney Council’s project. Our government honours our commitments.

"This followed a submission from North Sydney Council that outlined the case for funding, the scale of works and estimated costings."

He said the female facilities fund was aimed at contributing to projects "across Australia as the prime minister made explicitly clear when he announced the scheme in March 2019".

Mr Zimmerman said the government was "working through contract finalisation for this project".