A BITTER row has erupted in Sydney's gay community after a group of prominent activists accused the state's leading homosexual health service of squandering millions of dollars in taxpayers' money.

Gay rights campaigner Gary Burns, HIV lobbyist Shayne Chester and journalist Peter Hackney have demanded the state government "demolish" ACON, formerly known as the AIDS Council of NSW. The trio alleged the service, which specialises in HIV prevention, care and support, received $12.6 million in government funding last year but spent only $800,000 on programs and services. In a scathing attack, the group dubbed the organisation a "gravy train" and called on Premier Kristina Keneally to hand back ACON's work to NSW Health.

"ACON holds nebulous conferences, seminars, workshops, initiatives, meetings, information sessions and awards nights with disturbing regularity," Mr Hackney said.

"They are all catered for, with smoked salmon, ham and avocado, freshly squeezed orange juice and even champagne – and we all know who's paying for it."

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