Regional Deal not a goer without Victoria, NSW says but promises Albury won't lose out

Paul Toole said on Thursday the Commonwealth-driven deal, which was to include all three levels of government, had disintegrated.

"We were always interested in having a conversation and said we would come on board, but you can't have a deal if Victoria is not a part of that deal," Mr Toole said.

"That meant the deal was no longer a viable deal that was being put forward, not all three parties were going to be involved."

Mr Toole was speaking in Albury after announcing the NSW government would contribute $15 million towards a new $30 million convention wing of the Albury Entertainment Centre.

The federal government and Albury Council had flagged funding of $10 million and $5 million respectively for the project under the Regional Deal banner.

Mr Toole said NSW would now rollout funding that could have been in a deal.

"We will make sure that our investment and the money that we've actually earmarked as a part of that deal is still going to come into this community," he said.

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"Over the coming weeks and months I'll be announcing more projects, the local member will be announcing more projects, Albury is not going to miss out because I can assure the money has been reserved over here for benefits in the wider area."

Asked about the prospect of funding for a new Albury-Wodonga hospital, Mr Toole said that was a matter for the NSW Health Minister.

"That's a conversation that would be had with the Health Minister but I do know that (Albury MP) Justin Clancy is someone who is a strong advocate for health in this area," Mr Toole said.

"He is always been talking about the needs of investment in this local area, but that is something that does go through the Health Minister."

The convention centre upgrade has been in the pipeline since early 2018 when plans were presented to Albury Council.

Under the $30 million makeover, part of the existing convention wing will be retained and other areas rebuilt.

Conference seating capacity will be doubled to 2000 patrons to ensure the city can attract bigger events.

Mr Clancy said it would drive corporate tourism.

"This is something that I know that Albury City has been advocating for for a number of years, certainly since my term coming into parliament it is something that has been part of the conversation that I have had with Albury City," he said.

Albury mayor Kylie King said the revamped convention wing will be a great fillip for the Twin Cities, noting Wodonga mayor Kev Poulton was at the announcement.

"It's going to bring a tremendous economic boost to our city, $30 million a year, 120 extra full-time equivalent jobs, so that investment that the NSW government has given...will make a tremendous difference," Cr King said.

The convention centre blueprint is before a regional planning panel for approval.

When it returns to council, detailed designs, analysing demolition requirements, will be undertaken and are expected to run into 2023.

Tenders for the work are then likely to be called in mid to late 2023 and a sod turned on the project in 2024.

A gala ball was held to mark the opening of the convention wing, then known as the city hall, in May 1972.

An air bridge linked it to the adjacent 1964 theatre.

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