The state government has splashed $200,000 on Christmas decorations, in a bid to compensate retailers for the bungled light rail project.

In an attempt to get shoppers into the festive spirit, eight giant wreaths have been along the George Street light rail site, at a cost of $25,000 each.

Transport NSW Coordinator General Marg Prendergast tells Ben Fordham close to $15 million worth of compensation has already been handed out.

She says the wreaths will help boost retail in the area.

“[Last year], it attracted huge crowds, it became selfie central.”

Click PLAY below to hear the full interview

Image: Event Engineering