The state government will not release an updated cost estimate for the Macquarie Point stadium, with Premier Jeremy Rockliff saying doing so would damage the procurement process.
“The Macquarie Point Development Corporation will not be providing any figures at all because it will be damaging the project and damaging Tasmania’s taxpayer and damaging the procurement process,” Rockliff said amid mounting pressure this morning.
The refusal sets up a confrontation as parliament returns after a seven-week break, with a motion passed in May requiring the government to table a revised cost estimate by August 11.
In a letter to the Treasurer and Macquarie Point Minister Eric Abetz, Macquarie Point Development Corporation CEO Anne Beach outlined several reasons for withholding the figure.
Beach said releasing an estimate was “likely to reduce competitive tension between tenderers, impact contract negotiations”.
“[It] could be considered as a reduction in the importance of cost and value management and risks adversely affecting value-for-money outcomes.”
She also warned that preparing a revised estimate for public release before tender responses were received risked “providing the community with confusing and competing information.”
Beach said releasing a figure before the evaluation was complete would “compromise procurement integrity” and be inconsistent with established tendering codes.
She said if cost matters arose during the assessment process, the MPDC anticipated it would provide advice to the minister by late September or early October.
Greens leader Rosalie Woodruff today said the treasurer admitted at a Public Accounts Committee hearing last week that the stadium’s costs are expected to exceed the government’s $875 million cap.
“The treasurer has now confirmed that because of prices in the Middle East, the costs are expected to be more than that,” Woodruff said.
She accused the MPDC head of defying the will of parliament and said the government appeared willing to write a blank cheque while cutting hospital services, biosecurity and public service jobs.
“We’re talking about multi-billions of dollars and what seems like a blank check that the Treasurer is prepared to provide to a construction company to build the stadium at whatever it costs,” she said.
Woodruff said the Greens would work with Labor and crossbench MPs to pressure the government.
Shadow Stadium Minister Luke Edmunds took a more measured approach, saying the government should make its case in parliament.
“We’ve got a process where we do have two bidders live in this process, there’s unsurety about where those bids are [going to] land,” Edmunds said.
“I can understand the argument the government has been making. They need to make it in full tomorrow though.”
He distanced Labor from the Greens, saying their motives around the project were “more about sabotage than scrutiny.”
However, Edmunds said his party remained concerned about potential cost blowouts given the state of the budget.
