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Sydney's Lord Mayor Clover Moore is threatening to pull out of a study into the extension of the light rail network, because the New South Wales Government has again ruled out a light rail line through the CBD.
The State Government and four inner city councils are looking at a plan extend the light rail from Lilyfield to Dulwich Hill.
Clover Moore wants the study expanded to also look at running light rail through the city to the planned development at Barangaroo.
The Transport Minister is refusing to extend the terms of reference for the study and Ms Moore says she is now considering withdrawing funding.
"We are very strongly supportive of of the light rail study but we want it to include George Street," she said.
"We have done comprehensive work to see what the needs are of the the CBD in terms of its future and light rail has been identified as something which will help us calm the traffic and reduce congestion."
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