THE State Government backed down yesterday from its commitment to keep the inner-city rail line, declaring all options were "on the table" as it pursued ways to revitalise Newcastle's depleted city centre.
Citing changed community sentiment on the rail line, Minister for the Hunter and Newcastle MP Jodi McKay said yesterday that "the status quo with the rail line no longer applies".
She placed the line's fate in the hands of the Hunter Development Corporation, charging it with identifying the best transport and redevelopment options for Newcastle. It was also to make a submission to the Federal Government's Major Cities Unit, which earmarked money for spending on regional growth centres.
"The only issue that is non-negotiable is that we maintain the rail corridor in public ownership," Ms McKay said.
But The GPT Group, which sought in-principle Government support for cutting the rail so it could move ahead with its proposed $650 million redevelopment of the central business district, said it was disappointed with the lack of a decision.
Ms McKay told stakeholders at a City Centre Taskforce meeting at Newcastle Panthers yesterday that the community and the State Government had to "be brave" and consider whether keeping the heavy rail in the inner city was in the best interests of Newcastle and its renewal.
"I don't think you should accept what is there just because it has always been there," she said.
She had asked the corporation to begin working immediately with the Federal Government to develop "the optimum solution for the redevelopment of the CBD".
The corporation was expected to make a submission to the Federal Government by June.
Taskforce chair and NSW Coordinator General David Richmond said Government "flexibility" on the future of the rail line was needed so that the best possible renewal strategy for the city could be determined.
Mr Richmond also said the corporation's determination would have to be "Triple A-rated".
Ms McKay said she had door-knocked constituents, and received many letters as well as feedback on the Bang the Table website.
"They want leadership, they want a way forward and the only way we can do that is to put everything on the table again," she said.
The Government's attitude to the line had changed because "what is different now is that it is tied into the city's revitalisation".
Newcastle Lord Mayor John Tate said public and private investment was needed to move the city forward.
He backed the State Government's pledge to consider all options for the rail line and said he would support whatever submission was made to the Federal Government.
"Everything is on the table, it must be on the table because you can't put together a plan that's all-encompassing, that comprehensive, without putting everything on the table," Cr Tate said.