The council is set to tune into a live stream of a Japanese festival rather than send a representative to the celebration at its sister city.
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Port Macquarie-Hastings Council respectfully declined an invitation from Handa City to attend the 2023 Handa Dashi Festival in person.
It accepted the invitation to participate in the live streaming of the festival, along with the invitation to receive a recording of the event.
Cr Nik Lipovac said the invitation to send a representative to the festival in late October was appreciated and a wonderful gesture.
He said however, considering organisers indicated that COVID remained a major concern in Japan, and therefore they were offering to live stream and record the event for those unable to attend, it was clearly an option the council should accept at a time of belt tightening, and the council was no exception.
"There is no requirement for us to send a delegate on this occasion," Cr Lipovac said.
"They have provided a get-out clause and our relationship with Handa will not be damaged by this."
A sister city relationship between Port Macquarie and Handa has been in place since 1990.
A council report said the main focus of activities had been cultural, musical and school student exchanges and visits.
The sister city relationship has been relatively quiet over the past few years due to COVID-19.
A delegation of students from Handa Higashi Senior High School visited Port Macquarie in March 2023 for a visit with Hastings Secondary College Westport Campus.
The report said the council was not required to be involved in planning or hosting the visit, apart from hosting a mayoral morning tea.
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