THE stalled Newcastle Art Gallery expansion is back on the cards, with Labor's candidates for state government and lord mayoral byelections promising to fund it if elected.
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Newcastle state byelection candidate Tim Crakanthorp said Labor would commit $14 million to the project if it won the election in March.
Newcastle lord mayoral candidate Nuatali Nelmes said she would make sure the council funded the remaining $7 million if Labor regained control of the council chambers.
Cr Nelmes said the expansion was "shovel-ready" and the money that had been set aside by the council was still there.
"If we want to breathe new life into Newcastle, the gallery is a key piece of the jigsaw, and it will be a catalyst for further projects," she said.
The council was successful in its application for a rate rise in 2012.
Money that flowed into the council from the rate rise was to be used to expand the gallery, along with six other major projects.
Presently the gallery only has the capacity to exhibit 2 per cent of its permanent collection.
The expansion would allow the gallery to exhibit more pieces, as well as add a cafe and retail space and host commercial functions.