In a major backflip, the state government has abandoned plans to knock down and rebuild ANZ Stadium.

The NSW Government will instead remodel ANZ stadium into a rectangular area with seat and roof upgrades, saving close to $500 million.

The knock-down and rebuild of Allianz Stadium at Moore Park will go ahead, at a cost of $730 million.

NSW Premier Gladys Berejiklian tells Ben Fordham the future investment, costing $1.5 million, strikes “a good balance”.

She says the backflip came down to two things.

“It’s a combination of two things, definitely one of them is listening and the other one is doing our homework.

“Listening to the community [is] critical in any major decision.”

The Premier admits the stadiums are not as large a priority as schools and hospitals but are still critical infrastructure for Sydney.

“It’s still important to our state, we don’t want to get left behind.”

Listen to the full interview with NSW Premier below  

NSW Opposition Leader Luke Foley tells Ben Fordham he’s not at all on board, labelling the backflip a “comedy of errors”.

“It’s still a $2.2 billion reckless extravagant splurge spend.

“The money would be better off going to schools and hospitals and our paramedics,” he says.

“I will not support building a new stadium at Moore Park.

“It will be scandalous and a complete waste of money.”

Mr Foley tells Ben a Labor government will launch an inquiry into the decision.

“An incoming Labor government next year will hold a special commission of inquiry with royal commission powers.”

Listen to the full interview below