"The fireworks always generate very large crowds and the two separate displays result in the cross over of large numbers of people leaving for one show and arriving for the next," she said.
"In the current climate, limiting this mixing of crowds will ensure the event can be managed in the most COVID-safe way for all attendees and staff."
This has sparked debates about capacity limits. with politicians calling for the 5000 capacity limit for outdoor events to be dropped.
The spokeswoman also clarified that due to the current spread of the Delta virus, the city will have to learn to adapt to the current climate.
"We are advised that it is likely the delta virus will still be circulating in the community to some extent come the end of the year, so our plans will allow the event to remain resilient in the face of the changing health situation and Public Health Orders."
While the popular 9PM fireworks have been scrapped, the state has shown massive growth with 54 percent of NSW residents now fully vaxxed.
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