Myuna Bay Sport and Recreation Centre is likely to remain closed for another two months before its long-term future is decided.
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The state government has requested a risk assessment to help determine whether or not the centre should remain closed because of the possibility of the Eraring power station ash dam wall failing in an earthquake.
The risk assessment has been ordered by Sports Minister John Sidoti who has indicated he wants to see the centre reopened.
Mr Sidoti told parliament no decision on the centre's status would be made until the risk assessment was completed.
The centre was closed without warning on March 29 when Origin Energy advised that an engineering review of its power station ash dam had found that although the dam was stable, it could be affected in the event of an earthquake.
An independent review of the technical advice used by the Office of Sport to close the Myuna Bay centre found there was, indeed, "plausible risk" to users.
But the review recommended "further analysis" to "allow better determination" of that risk.
Member for Lake Macquarie, Greg Piper, said he was frustrated by the review's findings.
"Unfortunately the review poses more questions than it provides answers and it fails to determine the actual degree of risk posed to Myuna Bay by a break in Eraring Power Station's ash dam wall," Mr Piper said.
"In short, it concludes that the dam wall would likely fail if a major earthquake followed a heavy rain event, and that of course would have a catastrophic impact on Myuna Bay, and on anyone driving along Wangi Road, and on the lake itself.
"But it doesn't tell us the chances of that happening, and that is what I and the community have been asking since it was abruptly closed and evacuated without warning.
"It is clear that the risk is incredibly low and I believe did not warrant the immediate closure of the centre.
"There is a degree of risk in everything we do, but we don't shut everything down or lock everyone up indoors," he said.
"There is absolutely no immediate threat to Myuna Bay, and as we know, Geoscience Australia puts the chances of a major earthquake within 100km of Myuna Bay at 'one-in-5000-years or more'.
"The Minister has assured me that he has already ordered the further risk assessment, but we're not likely to see the results of that until September.
"That means the centre and staff will remain in limbo for at least another two months which is incredibly frustrating."
Staff will remain on full pay until the future of the centre is determined.