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The Queensland Government is withdrawing its financial support for a centre of excellence for snow ski-jumping that was to have been built at the Sleeman Sports Complex in Brisbane.

The $6.1 million Winter Olympics facility would have included a 36 metre high ski jump platform, complete with hydraulics and purpose-built lift, that would have used the Sleeman Sports Complex's new 50 metre swimming pool as a landing area.

Blaming the State's high level of debt, Queensland Minister for National Parks, Recreation, Sport and Racing Steve Dickson has withdrawn Queensland's $2.6 million contribution to the building of the facility and its 100% commitment to its ongoing management and maintenance.

Minister Dickson explained "I have no hesitation in cancelling this project (which has) no credible business case to speak of and no tangible usage agreements."

"According to what little information there is available, potential usage indicates that very few elite athletes would have used it for training purposes.

"This is a luxury item the people of Queensland can neither afford nor need when the state is facing such dire economic circumstances."

Federal Minister for Sport Kate Lundy responded by expressing disappointment at the Queensland Government's decision to scrap the jointly funded facility.

Senator Lundy said the decision would compromise Australia's chances at future winter Olympic Games and slow investment in Queensland, stating "(the) decision to end this project discounts the economic benefit of attracting world-class athletes to Brisbane and has the potential to undermine Queensland's reputation as a centre for high performance sport.

"The Sleeman Sports Complex in Chandler was identified as the best option in Australia and would have provided our athletes with the optimum training facilities all year round to ensure we continue to produce gold medal athletes.

"The decision to cease the development of the training facility, which is jointly funded by the Federal Government, will disadvantage both athletes and the community.

"Many businesses in Queensland will be counting on this project to generate work and keep employees in jobs."

The Federal Government committed to fund the multi-purpose facility in 2011 for a range of winter sport disciplines, including aerial skiing, moguls and snowboarding, because more than 840,000 Australians use the facilities at Sleeman every year.

Senator Lundy added "it is disappointing the Queensland Government has failed to recognise the importance of upgrading the facility to support and attract elite athletes."

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