Australian PM defends Greece travel warning

Athens Olympic organisers have pulled out of a 75,000 stadium seating deal with Gosford-based Starena International just three months before the Games are due to begin.

The Department of Foreign Affairs, in consultation with ASIO, earlier this month amended the travel advisory for Greece, urging caution because of the risk of terror attack after bomb outrage in Athens.

Mr Howard said he was aware that the stadium seating contract had been cancelled and that Australian officials were in talks with the Greek counterparts about having the decision reversed.

However, he said he did not know if the decision was linked to Australia upgrading its travel warning for Greece.

"We issue travel advisories based on security advice and we don’t apologise to anybody for the travel advisories we issue, not to anybody," he told Sydney radio 2GB.

"But I would hope that matters relating to contracts are treated on their merits by the Greek Olympic authorities."

The upgraded travel advisory sparked outrage from Greece whose Olympics organising committee president Gianna Angelopolous has described Australia’s move as uninformed and bad security practice.

Starena International had been contracted to supply plastic seats for the main Olympic stadium and indoor arena in Athens.

When the deal was first signed in April, NSW Treasurer Michael Egan hailed it as a jewel in the crown for the company which was already signed up to provide 5,000 seats to the Athens Beach Volleyball Centre.