An independent report has raised serious questions about a proposed stadium near Hobart’s waterfront. The venue is a key condition of Tasmania getting its own AFL team. The report says the process has been flawed, with costs underestimated and benefits overstated.
Category
📺
TVTranscript
00:00This report came about as part of an agreement between the Tasmanian Government and the Jackie
00:06Lambie Network for their support in minority government.
00:10It was completed by economist Dr Nicholas Gruen, and it's fair to say it was particularly
00:14scathing of the proposed Macquarie Point Stadium.
00:17He found that the cost had been underestimated by about $300 million.
00:22The Government would need to find about $1 billion in so far unspecified financing.
00:27He found it places an unreasonable strain on Tasmania's public funds, and that some
00:32forms of creative accounting had been used to hide some potential costs.
00:37He also suggested that the Government should look at alternative sites, and the Government
00:42has promised to not spend any more than $375 million on it, but as we'll hear from Dr Gruen,
00:49he's questioned that commitment.
00:52By virtue of the way in which the stadium has been accounted for, the Government has
00:59maintained what can only be called a fiction, that it will not go into debt by more than
01:05$375 million to build the stadium.
01:09The Government is meant to get final approval for the stadium by the middle of this year,
01:15but that requires passing both Houses of Parliament.
01:17The Labor opposition supports a stadium, but even with Labor's support, the Government
01:22would need at least one or two independent crossbenches to get it through the Upper House,
01:26so that's going to be quite a process for the Government later this year.
01:30Nicholas Gruen, in his report, he made some suggestions about how they might be able to
01:34ease some of the divisiveness around this project.
01:37That involved recommendations about extending the timeframes around the construction of
01:42the stadium, and potentially allowing the Tasmanian team to play at existing stadiums
01:47like Belle Reve Oval in Hobart and York Park in Launceston for five to seven years once
01:53the team comes in.
01:54The current agreement is for the team to play at those stadiums for one year, so that would
01:58be a significant extension of time for the stadium to be built, but the Government doesn't
02:03seem to have any appetite for going back to negotiating table with the AFL.
02:07The AFL doesn't either, presumably they are particularly tough negotiators when it comes
02:11to Tasmania.