Pavilion upgrade one step closer

A NEW showground pavilion may be a step closer after the NSW Government approved a low-rate loan to the council.

However, there is no guarantee Kiama Council will be able to raise all the funds it needs for the upgrades as its existing budget relies on receiving further grants rather than loans from the state and federal governments.

Mayor Sandra McCarthy said a new pavilion was a priority in the council's capital works program.

She said she was "absolutely delighted" the NSW Government had approved a $2.5 million loan, which would be structured at a lower interest rate than commercial loans.

"However, council strongly believes this should be a whole of government approach," she said.

"Both (federal MP) Joanna Gash and (state MP) Matt Brown have attended meetings with the community committee and both indicated very strong support for the project."

The council is still seeking $1 million in direct funding from the State Government and another $1 million from the Federal Government.

But Mr Brown said his understanding was that the NSW Government was just providing the $2.5 million loan to the council.

"The loan is subject to Kiama Council raising the balance of funds for the projects," he said.

Council general manager Michael Forsyth said that although the council was still optimistic it would receive the grants, if they did not eventuate council would have to review its budget to see if it could cover the shortfall.

He said council could apply for a different grant through the State's sport and recreation department since the development includes a new grandstand, but that would provide only a maximum of $250,000.

The option of building the development in a number of stages as funds became available was not viable, he said.

"We have considered that option and it could be further considered but would be better to do it in one stage," he said.

He was "quietly confident" the council's application to the Federal Government would be successful, but said it probably could not be extended to an extra $1 million if that money did not come from the State Government.