A tense two-hour long siege has come to an end after riot police rushed to arrest a man who refused to get out of a car parked outside NSW Parliament House.
About nine heavily armed officers stormed the vehicle with tear gas and a crow bar, dragging out the short, disheveled man.
The 58-year-old is now receiving medical treatment and will be questioned by police.
The man sparked a major security scare when he drove a white Chrysler sedan onto the footpath outside the steps of Parliament, just after midday.
It's believed he made a threat that there was a petrol bomb inside the car.
He handed a note to police, the contents of which is not yet known, but he allegedly demanded Premier Barry O'Farrell leave the building.
It has been confirmed that the Premier stayed inside with close personal protection office constantly with him.
O'Farrell this afternoon denied reports he had to be evacuated from the building.
NSW Assistant Police Commissioner Mark Murdoch addressed the media a short time ago saying the main priority was to contain the situation and negotiate with the man.
He also said the man from Wollongong is known to police, and is a regular visitor to the parliamentary precinct.
His motives are not yet clear, but riot police decided to swoop when he tried to ignite a cigarette lighter.
"Given our negotiations with this person, we believed that to be a significant trigger point and we needed to take action," Mark Murdoch said.
Police say the man suffered some cuts when officers smashed the window, but given the perceived risk they were comparatively minor.
"Those officers put their lives on the line this afternoon, that is to be commended," Murdoch said.
"The mere fact that we're in front of our state Parliament in the middle of Sydney in the middle of the day, certainly that posed a risk. We took measures to mitigate that risk and the situation was solved peacefully."
Assistant Commissioner Mark Murdoch also said that no member of the public or Parliament was at risk because of the incident.
"We didn't know what the liquid was and we still don't know what the liquid was. Officers are examining the liquid," he said.
Paramedics and two fire trucks were also on scene and firefighters wearing air tanks were seen walking towards Parliament.
Macquarie Street between James Road and Bent Street is blocked off and traffic is heavy around the city centre.
NSW Treasurer Mike Baird tweeted that he and Premier Barry O'Farrell were locked inside Parliament House.
"Apparently the culprit in the attached car - team just asked @barryofarrell to leave so following orders #macqstsiege," Baird also tweeted.
Police negotiated with the man who had refused to get out of the vehicle.
An announcement outside Parliament urged pedestrians to move back.
Motorists are being advised to avoid Macquarie Street between St James Road and Bent Street.
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