“The NSW government is responsible for health, transport and police. If the government is now concerned about the city’s plans and confident a COVID-safe 9pm event can and should go ahead, it can and should take custodianship of the fireworks again.”

Mr Perrottet said the government was also pushing ahead with plans to transform the Cahill Expressway into “party central”, with outdoor performances, pop-up bars and food stalls, between December 31 and January 6.

“This will give the Sydney CBD the shot in the arm it needs as we head towards reopening our economy,” he said.

“If we can’t knock it down, then we may as well have a party on it.”

Meanwhile, other Sydney councils are ditching New Year’s Eve fireworks amid uncertainty over the city’s restrictions and concerns last-minute cancellations could cost tens of thousands of dollars.

Randwick City Council last month cancelled its event, which attracts up to 30,000 spectators to Coogee, according to mayor Danny Said.

“If there are thousands of people, we’d have to check everyone’s been double-vaxxed, we need QR coding, we have to think about whether we ticket it. It just becomes so hard unless there’s clarity.”

Cr Said said cancelling the celebrations last-minute would come at a huge cost.

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“It’s a fantastic thing, but it becomes a nightmare for councils. We could lose $10,000 or $20,000,” he said.

Bayside Council mayor Joe Awada said the council had taken the “tough decision very early” to cancel plans to hold its celebrations at Brighton-Le-Sands.

“You need to coordinate everything, you’ve got police, ambulance, Transport for NSW, we have to barricade Bay Street,” he said. “We’re talking about October the lockdown easing, but even then it depends on vaccination rates.

“We said we would not have the fireworks this year because we don’t want to lose money. I’d rather use that money to help local businesses doing it tough.”

Northern Beaches mayor Michael Regan said the council had not yet decided whether its celebrations would go ahead and was “sitting back and seeing how it pans out”.

“We’re confident if we can put on an event, we will. We just need some guidance and firm details from the state government,” he said.

Waverley Council has not yet decided whether its celebrations at Dudley Page Reserve in Dover Heights, overlooking Sydney Harbour, will go ahead. The City of Parramatta Council also has not decided.

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