After being informed last October they had won the battle to build an aged care facility on public land overlooking Sydney harbour, the Perth family behind Continuing Health Care and led by Teelie Peploe (pictured) has been told that permission has now been withdrawn.

This follows a vociferous campaign by the Sydney shock jock Alan Jones who targeted Tony Abbott as its Mosman location is in his electorate.

The new Parliamentary Secretary for the Environment, Bob Baldwin, delivered the news to Ms Peploe, stating in a letter that after careful consideration he had concluded that there may be other potential uses for the land that would better meet objectives.

The proposal was to build an 89 bed care facility plus dementia day clinic at a cost of $27 million. They would pay $1 million a year rent. After four years Ms Peploe says they have given up.