Interim Report – Parliamentary Inquiry into Stadium Precinct

Media release – Parliamentary Standing Committee of Public Accounts, 6 September 2023

Interim Report: Inquiry into the Tasmanian Government’s process into the proposed Arts, Entertainment and Sports Precinct in Hobart

The Parliamentary Standing Committee of Public Accounts (Committee) is continuing its targeted inquiry into the Tasmanian Government’s process into the planning for the proposed Arts, Entertainment and Sports Precinct in Hobart.

The Committee tabled a majority interim report today (6 September 2023) in Parliament.

This Interim Report should be read in conjunction with the relevant submissions and transcripts of public hearings and focussed on key matters related to evidence to date. The Committee noted significant developments have occurred with regard to this proposed new facility and the Agreement signed by the Premier on behalf of Tasmania and Mr Gillon McLachlan on behalf of the AFL (the Agreement) that has been partially publicly released. As a result of evidence received to date and new information becoming available, this Interim Report will provide an overview of evidence received predominantly prior to the public release of the redacted Club Funding and Development Agreement signed between the Crown in the Right of Tasmania and Australian Football League. The Committee resolved to continue the Inquiry under a revised Terms of Reference and will report on these matters in due course.

To date, the Committee has made a number of findings including findings related to the lack of consultation, especially with key, and deeply invested stakeholders related to the Macquarie Point site. These include the Returned and Services League of Tasmania (RSL Tasmania), Vietnam Veterans Association (Tasmania), TasWater and Hobart City Council. Many of the assumptions contained in the various reports provided to Government, including the PricewaterhouseCoopers and MI Global Partners Reports, are not comprehensive or detailed to enable a meaningful Cost Benefit Analysis to be determined. These Reports have significant gaps, for example, the absence of assumptions related to opportunity costs and implausible event attraction details.

It is expected the new facility will be debt funded and Australian Government have committed funding to support place-based co-investments at both York Park and Macquarie Point sites. This funding, which is unlikely to be quarantines from the Commonwealth Grants Commissions GST assessment, is likely to result in reduced GST grants to Tasmania in the future.

At this point in the Inquiry, the Committee makes one overarching recommendation that the Committee’s Terms of Reference be revised to reflect recent developments with a greater focus on the Agreement and the financial implications for the State this Agreement gives rise to.

The revised Terms of Reference that will inform future reports are as follows:
To inquire into and report upon the Tasmanian Government’s process into the proposed Arts, Entertainment and Sports Precinct in Hobart with a particular emphasis on:
1. matters related to the Club Funding and Development Agreement (Agreement) signed between the Crown in the Right of Tasmania and Australian Football League;
2. the suitability of Macquarie Point as the site for a proposed the Arts, Entertainment and Sports Precinct;
3. the financial risks associated with the Agreement;
4. matters related to the financing and delivery of the entire proposed Arts, Entertainment and Sports Precinct;
5. the future of Blundstone Arena and UTAS Stadium; and
6. any other matter incidental thereto.

The Committee continues to inquire into matters outlined in the above revised Terms of Reference.

A copy of our Interim Report is available on the Committee’s Inquiry webpage: Tasmanian Government’s Proposed Hobart Stadium Feasibility Planning Process.

The Members of the Committee are:

Legislative Council

Hon Ruth Forrest MLC (Chair)
Hon Meg Webb MLC
Hon Josh Willie MLC

House of Assembly

Ms Lara Alexander MP
Dr Shane Broad MP (Deputy Chair)
Mr Dean Young MP

Further information about the Committee is available on the Committee website.

Read the interim report here: 16bc8646204fbb8e8c558ddcdd0df8b210e1e4d2.pdf (parliament.tas.gov.au)

Media release – Dean Winter MP, Shadow Minister for Economic Development, 6 September 2023

Interim report finds stadium modelling insufficient and major issues unresolved

The Public Accounts Committee inquiry into the Tasmanian Government’s proposed Hobart stadium has found some of the most significant issues with the project have still not been addressed.

There are serious questions about the constructability of a stadium on the site that remain unresolved and no one really has any idea how much it will cost – except that it is likely to be well north of $1 billion and entirely debt funded.

The interim report also found that there has been a complete lack of consultation by the State Government with key and “deeply invested” stakeholders related to the Macquarie Point site, including the Returned Services League (RSL Tasmania), the Vietnam Veterans Association, TasWater and the Hobart City Council.

The report found no evidence Tasmania has received an exemption for the Federal funding from the calculation of the state’s GST payments.

Due to the arrangements between the State and Federal Governments, this means Tasmania will receive just $5 million once the impact on GST payments is factored in, and Tasmanian taxpayers will be on the hook for virtually the entire cost of the stadium.

The inquiry also found the PricewaterhouseCoopers and MI Global Partners reports commissioned by the government contain “significant gaps” and “are not comprehensive or detailed to enable a meaningful Cost Benefit Analysis to be determined.”

Crucially, these reports have served as the basis of other reports on the possible benefits of the stadium.

The Premier is desperate to make this about aspiration, but the truth is his plan is looking more and more like delusion.

This is not a matter of enthusiasm or ambition. It’s a matter of engineering and finance.

This interim report is further evidence that the stadium at Mac Point still lacks basic detail, and the Government is not being transparent with Tasmanians regarding the true cost of the project.