Plans to renovate the Sydney Opera House in Australia are threatened after the Prime Minister Kevin Rudd refused to back the estimated AUS$900m (£433m, €466m, US$630m) project claiming there was better use for the money.

The announcement came the day after the New South Wales Premier Nathan Rees said the restoration was under "active consideration" by the budget committee. If the seven-year-long renewal project was to go ahead, the opera house would be renovated to reflect the original vision of its Danish architect Joern Utzon, who died last November. Utzon produced the revamp designs in collaboration with architect Richard Johnson in April 2008.

The plans include the lowering of the theatre's floor by 18m, the introduction of a new box office and more public seating as well as improvements to access. A spokesperson for the venue said in order to keep the opera house operating we urgently need to address issues of accessibility for people with disabilities, health and safety issues, concert hall acoustics, public spaces and financial viability.

If the project was to be completed it would generate substantial financial, cultural and tourism benefits to the local and Australian economy, she added. "Sydney Opera House is a critical piece of tourism infrastructure, contributing over AUS$300m annually to the nation and visited by 7.5 million people each year."