My understanding of the original cost to build and relocate the simulators was going to be funded by the NSW government as they need the land that the current training building is on (QF Jet Base) for their new road infrastructure. AD’s email indicates that funding is no longer available and QF is not going to make up the difference, especially in these times.
The threat to the NSW government is that the simulators will be moved to facilities in Melbourne & Brisbane which means that all the training and support staff would have to relocate thus reducing the income for the State’s coffers.
Maybe, NSW will have to try even harder to get Virgin’s HQ moved to Sydney to offset the loses.