Two people have managed to escape unharmed from a sinking lakeside restaurant located in Lake Macquarie just south of Newcastle.

Milano’s Restaurant has now partially collapsed into the water with Fire and Rescue NSW confirming the poles and piers underneath the building had been undermined, causing the structure to sink into the lake.

ABC News reports that crews are currently working to set up booms at the marina to prevent any contamination that may result due to the collapse.

The restaurant is located on crown land which is overseen by the NSW Government. According to Crown Lands Hunter manager Tim Deverell, a structural assessment on the site was performed in December which found “nothing in [the] report to indicate that there was a danger of imminent collapse.”

Labor MP for Swansea, Yasmin Catley told ABC News that she had contacted officials after residents had raised concerns of the structural integrity of the building, but received a significantly delayed response.

"…I think that the lack of interest that we received from the Government on this issue has been really quite disturbing"

Fire and Rescue NSW and Public Works are still working to determine the extent of the damage, and have closed the marina to the public until further notice.

 

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