The Clarence City Council is considering legal action against the Tasmanian Government after it was revealed that artificial intelligence (AI) was used to approve the Kangaroo Bay development as a major project.
The proposed hotel complex on Hobart’s eastern shore was awarded major project status last week after the developer Chambroad provided an updated economic impact figures.
According to a document tabled in Parliament, Treasury raised concerns about the job creation numbers provided in the latest application by the developer.
“As the MPP (major project proposal) provides no information on the methodology or data sourced to support the proponent’s estimates of the jobs created in the construction and operational phases of the project, the veracity of these estimates cannot be tested,” Treasury said.
A response from the Department of Premier and Cabinet (DPAC) said the tool used to allay their concerns was Microsoft Copilot.
“Utilising artificial intelligence, the State Planning Office obtained data suggesting that the estimates of 100 full-time equivalent (FTE) construction jobs and 100-150 direct hotel jobs are reasonable, given the 4.5-star rating of the proposed facility,” DPAC said.
“The proponent’s estimate of 293 indirect jobs arising from added visitor expenditure cannot be proven to be incorrect or unreasonable.”
Deputy Premier Guy Barnett said the use of AI ‘isn’t unusual’ and the government supports the jobs that will be created by the project.
“We make no apology for putting this project on the table, supporting the project to go through the normal planning and approval process,” he said.
“And we’re very excited about the possibilities to create more jobs, grow the developments on the eastern shore of Hobart and particularly with respect to tourism, education, retail, building and construction sectors.”
But Clarence Mayor Brendan Blomeley said the use of AI in awarding major project status “doesn’t pass the pub test”.
“This is extraordinary. How can the Minister award major project status when the submission is not based on demonstrable facts and evidence,” he said.
“The idea that if something can’t be disproven then it is true, is incredibly dangerous, as is the ‘near enough is good enough’ approach of the State Planning Office.”
“DPAC and the State Planning Office received expert economic advice from the Department of Treasury and Finance, but they didn’t like the answer they received.”
“Instead, they used AI to try and validate Chambroad’s claimed job creation statistics. That should tell you all you need to know about the merits of this proposal.”
“Be assured, council will buy back the land and return it to public ownership.”
The development has been a source of controversy since it was first proposed, with residents concerned about its impact on the waterfront area they believe should be public-space.
The council, which has previously rejected the development, will be sidestepped in the decision making throughout the major project process.
