Premier Jeremy Rockliff has brushed off an economist’s report that questioned the cost estimates and timeline of the proposed Hobart stadium at Macquarie Point.
The stadium, estimated to cost $715 million, is a key part of the agreement between the AFL and the state government to secure an AFL team for Tasmania.
Nicholas Gruen’s report released earlier this month suggested the stadium could cost more than $1 billion and that the timeline for completion is unrealistic.
But Rockliff said there are differing views on whether or not the costs are underestimated and benefits overestimated.
“Look, you ask two different economists and they’ll provide you with three different answers,” he said.
“And so we’re very much sticking to our pathway of Macquarie Point Stadium. It’s the one that will deliver the results. It’s been long discussed, heavily scrutinised and that is the way forward.”
When asked if he agreed with the report’s suggestion that the stadium could cost more than $1 billion, Rockliff said it “all depends on the design”.
“We’ve got $375 million on the table. The federal government have contributed $240 million to the Macquarie Point precinct and the private sector, as I understand it, are interested in investing in such a project,” he said.
“So this is about a public-private partnership of which the state government will contribute $375 million.”
Rockliff said discussions would soon take place with the AFL, which will contribute $15 million, around a “range of matters”, but did not say if he would ask the league to be more lenient on penalties for failing to meet project deadlines.
The signed deal sets out that Tasmania must pay $4.5 million if the stadium is less than 50% complete by October 2027 and another $4.5 million if it cannot host matches in the 2029 season.
Rockliff went on to confirm that Macquarie Point, called the wrong location for the stadium by Gruen, was “the right place to build it”.
“Notwithstanding right now it’s a wasteland, notwithstanding right now it’s next to a port, notwithstanding the fact that also it’s right next to a sewerage works, which we will of course remove, it is a great location for a stadia precinct,” he said.
“We’ve been very honest and upfront about our contribution moving forward of $375 million, which, of course, the government invests in our health system every 42 days.”
