The NSW government has opened the door to offshore sand dredging as a solution to Stockton's erosion crisis.
Offshore sand extraction is illegal in NSW without a licence, but a spokesperson for Local Government Minister Shelley Hancock said Newcastle council should include dredging as an option when it sought funding for a long-term solution.
"As part of the Coastal Management Program [CMP] process, all available management options, including offshore dredging, should be assessed," the spokesperson said.
"Offshore sand resources are protected by the Offshore Minerals Act 1999 and cannot be accessed without an appropriate licence. The Offshore Minerals Act 1999 does not preclude council from investigating whether the use of offshore sand is a feasible option."
Experts have said an estimated $5 million in dredging could be a long-term fix for the suburb.
The government, under political pressure on the issue, is keen to fund a solution sooner rather than later via an $83.6 million coastal management program announced in 2016.
Liberal MLC Taylor Martin lashed Newcastle council in Parliament on Wednesday for building "vanity projects" instead of submitting compliant funding applications to address the Stockton issue.
The council and state government announced on August 24 last year joint funding of $295,000 to develop a CMP under the new Coastal Management Act. Both parties hailed the funding as the start of "genuine" progress on fixing Stockton's woes.
Ms Hancock's office said on Thursday, 13 months after that joint announcement, that it was the council's responsibility to submit a CMP and gain access to funding.
"A CMP can be completed at any time, and there are no impediments to council finalising its CMP immediately," a spokesperson said.
"The NSW government is strongly urging council to progress this and is doing everything it can to assist council to complete its CMP.
"We are working closely with the council on further funding applications."
The council said it was working on the CMP.
"Although legislation dictates the program will come into effect from 31 December 2021, City of Newcastle and the NSW Government are in discussions about how this CMP could be significantly brought forward," a spokesperson said.
Ms Hancock is expected to visit Stockton on Monday.
The four councillors in the Newcastle Independents alliance said the Labor-majority council should stop "buck-passing" to the state and use some of its forecast $11.9 million budget surplus to immediately fund rehabilitation of the beach.
"The people of Stockton do not deserve to be pawns in a political game, and the council's surplus could be put to good use in fixing the beach now," Cr John said.
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