5 May 2026

Shoalhaven Council to negotiate with government over library funding

| By Claire Sams
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Plans for a one-storey Sanctuary Point library

An artist’s impression of a single-storey library at Sanctuary Point. Image: Supplied.

The future of a new South Coast library has been revealed, with councillors seeking to negotiate over funding grants.

In 2022 the Federal Government committed almost $7.5 million for the construction of a two-storey building to serve as the new library for Sanctuary Point.

But in November 2025, Shoalhaven councillors endorsed a single-storey library building for the corner of Kerry Street and Paradise Beach Road for financial reasons.

This meant the council needed to make a decision on the funding, given the scope change, after the Department of Infrastructure determined it had to be used for the original, larger building.

During a recent meeting, councillor Bob Proudfoot called for the council to move ahead with the project.

He said the project had faced an “escalation of the price”, with cost estimates reaching up to $30 million.

“We have to try and go back to the funding body and say, ‘Look, what sort of flexibility is there?'”

READ ALSO Design changes cause delay to drag on for Shoalhaven library project 'mess'

Councillor Jemma Tribe pushed back on the recommendation in the meeting papers, which would see Shoalhaven Council terminate the funding deed.

“I cannot in good conscience stand here and allow that to happen,” she said.

“This community desperately needs a library. … It’s in every planning document we have, and the community is saying loud and clear that they need a new library.”

She said the existing library was not only “too small and inadequate” for the Sanctuary Point community, but also “not ours forever”.

“We don’t have other options for when the Department of Education take back the current site … [Other nearby libraries are] already bursting at the seams.”

The need to push ahead with a new library space was echoed by councillor Ben Krikstolaitis.

“As far as it goes, I’m really into this foreshadowed motion, and we need to get on with it.”

Shoalhaven City Council's Mayor Patricia White and CEO Andrew Constance.

Shoalhaven City Council’s Mayor Patricia White and CEO Andrew Constance. Photo: Shoalhaven City Council.

CEO Andrew Constance warned there were limits on how the grant funding could be used.

He said communication from the government had indicated the money would need to be returned.

“Under the program funding deed, that we would have to give the money back because of a scope change, and this becomes a new project. … [That grant] was for a very different project, a much larger project.”

He also noted the final price tag for the new library project remained unknown, but there were several ways that Shoalhaven Council could raise that money (separate from the grant).

“I am very sensitive to the fact that until we do the necessary planning, scoping, approval and then go to market, we do not know the final cost.”

READ ALSO ‘Tourists are costing us money’: Shoalhaven considers paid parking for visitors

Councillor Debbie Killian called for the council to go back to the government and negotiate.

“Maybe I’m too optimistic … I would like to be approaching the Federal Government again and trying again to re-scope – and if they’re going to terminate the agreement anyway, well maybe we die trying to get that money kept.”

A staff member said the decision to lower the scope of the project came amid “escalating” costs.

“We wrote to the department, and we said, ‘We are no longer progressing with a $30 million library. We are, however, building a $15 million [project]. Can we use that $7 million?’

“They wrote back to us and said, ‘No.'”

Ultimately, councillors voted to negotiate with the State and Federal governments around the project’s cost.

The motion notes this is set to include funding opportunities that “also reflect cost escalations”.

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