Rage against the machines ... residents and activists at a meeting in North Sydney. Photo: Dallas Kilponen

The controversial Sydney Harbour floating heliport has been put on hold following a storm of criticism over the state government's handling of the project.

''Effective immediately, Newcastle Helicopters has put the project of the Sydney Harbour Floating Heliport on hold until further notice, in order to consider the feasibility of the operation going forward,'' the company in charge of the heliport said through its public relations agency on Saturday afternoon.

''It is Newcastle Helicopters' intention to address the relevant concerns … with thoroughly considered and accurate information, and is taking the appropriate steps to do so.''

Shadow Minister for Communications and Broadband, Malcolm Turnbull

"The government should revoke the licence" ... Malcolm Turnbull. Photo: Alex Ellinghausen

Public anger has been rising for a month since the O'Farrell government granted the company a licence to run unlimited flights from a barge on Sydney Harbour. The issue came to a head last week when the federal opposition frontbencher Malcolm Turnbull labelled the project a ''reckless'' and ''undemocratic'' disgrace.

The Deputy Premier, Andrew Stoner, announced the project on November 20, but it soon attracted criticism. The agency responsible for approving the heliport, Roads and Maritime Services, granted the licence without consulting the community, doing an environmental impact statement, testing for noise or putting the plan out to tender.

After an angry community meeting in North Sydney last Monday night, Newcastle Helicopters hastily arranged a noise test on the harbour to prove that the helicopters were as quiet as they said they would be.

But, embarrassingly for the company and the government, Fairfax Media revealed the ''expert'' employed to do the sound tests, Carl Holden of Airport Friendly Solutions, had never produced a noise report for helicopters. He also conceded he had been wrong to describe himself as a member of the Australian Acoustics [sic] Society. The peak body, actually called the Australian Acoustical Society, told Fairfax Media Mr Holden had never been a member, although he had subscribed to its magazine.

The first ''noise assessment'' report Mr Holden wrote for Newcastle Helicopters has been ridiculed by industry leaders and removed from the project's website. Then on Saturday, Fairfax Media revealed that the government only thought to question the safety of the service two weeks after it had approved the licence.

At 10am on Saturday about 100 opponents of the heliport met at the McMahons Point Community Centre to hash out a plan to stop the project. By 11am, motions had been passed, a resolution drafted, and a high-powered group called the Friends of Sydney Harbour had been formed.

Members include Mr Turnbull, celebrated yachtsman Ian Kiernan, the North Sydney mayor, Jilly Gibson, and many lawyers. Mr Turnbull said the heliport decision had descended into farce.

''They gave the licence, then they thought, 'Gosh, there might be some aviation safety issues here. Dear me, we might write a letter to CASA [the Civil Aviation Safety Authority] and ask them about it.' If you put this into an episode of Yes Minister nobody would believe it.''

Asked what he thought about the heliport announcement, Mr Turnbull said: ''I am not sure what this announcement really means. But our position remains that the government should revoke the licence and if Newcastle Helicopters want to have a floating heliport in the harbour they should make an application that goes through proper planning processes.''

Ms Gibson, said, ''I commend James Guest and Newcastle Helicopters for listening to the community and responding so quickly.''

The Premier, Barry O'Farrell, is deflecting questions on the heliport to the Deputy Premier's office, even though the licensing agency, Roads and Maritime Services, reports to the Roads and Ports Minister, Duncan Gay. Mr Gay's office is also referring questions to the Deputy Premier.

Mr Stoner said through a spokesperson that Newcastle Helicopters had advised the government that the project had been put on hold ''pending further discussions with relevant stakeholders''.

Newcastle Helicopters could not be reached for further comment.