The Federal Government handed over the ship to the NSW Government in a ceremony in Sydney this morning.

The NSW Government now takes responsibility for the ship and the process of preparation, transport to Terrigal and scuttling, Ms Neal said.

“The NSW Department of Lands is managing the project and I am confident it will finalise the sinking as soon as possible,” Ms Neal said.

“I am delighted the NSW Government has now taken legal possession of the HMAS Adelaide from the Federal Government, with the formal handover process being completed.”

The Federal Government will contribute up to $5.8 million to the project, to prepare the ship and ensure environmental hazards are removed before sinking.

It is expected that the ship will boost the Coast’s economy by up to $11 million annually and generate about 20 full-time jobs, Ms Neal said.

“It is now time for the people of the Central Coast to unite behind the project,'' she said.

“It is now time to look forward to the enormous benefits the ship will bring to the local economy when it is sunk as a dive wreck and artificial reef off the coast of Terrigal.

“The project will bring a tourism boost for the Central Coast, enhance local economic activity and support local jobs.

"The dive-wreck and artificial reef of the Adelaide will add to the critical mass of tourism opportunities of the Central Coast."

The 138-metre ship was the oldest of the Royal Australian Navy’s Adelaide-class frigates. It was decommissioned in Perth after 27 years of service, including three trips to the Persian Gulf, operations in East Timor and the rescues of round-the-world yachtsmen Tony Bullimore and Thierry Dubois.