Funding for the harbour from government sources only reaches 3.8 million but the harbour is now expected to cost up to $6 million.

Clean Seas and Southern Star Aquaculture will have to fund the shortfall for the project to go ahead in accordance with a Memorandum of Understanding between council and the Aquaculture industry.

The two companies will use the redeveloped harbour for the fishing industry.

Hagen Stehr, Chairman of Clean Seas, said that the company is still considering what its financial commitment to the project will be but that it is unwilling to pay $3 million for the harbour.

"I promised council that I would do my damnedest to stay in Whyalla but I need some help," said Mr Stehr.

"Yes, we would like to stay in Whyalla, yes, we would like to make Whyalla our main base but everyone has to come to the party.

"We can't carry all the financial burden ourselves," he said.

Mr Stehr said that his company had other financial commitments

"It's a matter of cost," he said.

"We've got to work out what is best for the company."

Stewart Payne, Group Manager of Development Service in the Whyalla

City Council said that it's up to the industry to find additional funding if $3.8 million isn't enough for the redevelopment.

Council has also come to an agreement that the industry will also take responsibility for the construction of the harbour and the project management.

Part of the Clean Seas operation may have to be relocated to Port Pirie or Adelaide if the project doesn't go ahead.

"We have severe shortages right now of infrastructure on shore," said Mr Stehr

"We can't even unload in Whyalla, we might have to look at other ports."

The issue was discussed at this month's council meeting.

"Clean Seas feel it is absolutely vital that they build the harbour," said Mr Payne at the meeting.

Concern was raised that the council can't afford any further financial commitment to the harbour.

"A variation of the deed is okay in my eyes but we have to be very wary that they won't come back to us asking for more money," said Councillor Merton Hodge.

Council said that it has absolved itself of further financial risk through the signing of the Memorandum of Understanding.