The Tasmanian parliament has passed a motion urging the government to provide updated financial estimates for the Hobart stadium project. The Greens party raised concerns that escalating construction costs, partly stemming from the ongoing conflict in the Middle East, could lead to an increase in the previously estimated budget of $1.13 billion.
This motion, which holds no legal obligation, requests that the government present the revised cost estimates by August 11. The call for transparency comes as the lower house of Tasmania addresses the rising expenses tied to global fuel prices.
The proposed stadium, which will accommodate 23,000 spectators and feature a roof, is located at Macquarie Point in Hobart. It is a crucial requirement for the inclusion of the Tasmania Devils in the Australian Football League (AFL).
Initially, the project was budgeted at $715 million in late 2022. However, by the time the controversial development received parliamentary approval, the estimated cost had escalated to $1.13 billion.
Greens MP Vica Bayley introduced the motion in parliament, citing the “soaring material costs and supply chain disruptions” linked to the Middle East situation. The motion garnered support from the Labor party and passed with a vote of 18 to 15. It calls for the government to either present any revised cost estimates related to the stadium’s construction in light of the fuel crisis or to develop a new estimate to be submitted by the specified deadline.
“Few people take the $1.13 billion figure proposed by Premier [Jeremy] Rockcliff seriously,” Mr. Bayley commented to 936 ABC Hobart. “Many anticipate that the costs will exceed this amount, and that was before the recent conflict.”
He highlighted how the ongoing conflict has driven up fuel prices, resulting in significant increases in the costs of essential construction materials such as concrete, steel, and PVC. “This is the moment for the government to be candid and transparent about the stadium’s costs, providing the Tasmanian public—who will ultimately fund this project—with complete clarity on the financial implications,” he stated.
When asked if the government would adhere to the motion, Infrastructure Minister Kerry Vincent responded that the matter would be discussed, emphasizing that the government strives to explore all possibilities. He assured that updated figures would be provided “as necessary, when necessary.” Though acknowledging the impact of global conflicts on construction costs, he indicated that contingencies had been established for the stadium project.
However, when pressed to guarantee that the costs would not exceed $1.13 billion, Mr. Vincent refrained from committing to such a promise. “I cannot and will not make that guarantee. Prices fluctuate, and we must navigate those realities, managing costs across all our projects,” he explained.
The Macquarie Point Development Corporation (MPDC) oversees the planning and execution of the stadium project. In February, CEO Anne Beach presented a detailed breakdown of the $1.13 billion cost estimate to the Public Accounts Committee, which includes:
- $640.5 million for construction
- $302.69 million for development, including contingencies and consultancy fees
- $5.6 million for regulatory and authority fees
- $17.9 million for project resources
- $147.6 million in escalation costs
- $18.5 million for initial operational expenses
One of the two firms currently working on detailed designs for the stadium is expected to be appointed as the lead contractor by the end of this year. The project’s completion date, initially set for 2029, has already been postponed to the end of 2030.
The state government has limited its investment in the project to $875 million, which includes $375 million in direct capital costs and additional borrowings for the MPDC. The Commonwealth government has pledged $240 million, while the AFL’s contribution amounts to $15 million.
