AFL STADIUM BUSINESS CASE

Prime Minister Anthony Albanese says he had ‘constructive’ stadium meeting with Premier Jeremy Rockliff

The Prime Minister has made his first comments on Tasmania’s business case for a new stadium at Macquarie Point, saying he had a ‘constructive’ meeting with Premier Jeremy Rockliff.

Rob Inglis 6 min read December 23, 2022 - 5:44PM.    422 comments

New designs of what Hobart's new AFL stadium at Macquarie Point could look like. Images supplied by AFLTasmania

Prime Minister Anthony Albanese says he had a “constructive” meeting with Premier Jeremy Rockliff to discuss Tasmania’s business case for a new stadium at Macquarie Point – but he has stopped short of committing federal funding for the $715m project.

Mr Rockliff will head into 2023 with a renewed focus on securing Commonwealth support for the multipurpose roofed stadium.

It comes as opposition parties labelled the project “a turkey” and “absolute folly” after the release of the business case on Friday.

The Tasmanian government is seeking $240m from the Commonwealth to help build the stadium. The original request had been for $375m but the government’s business case revised the total cost of the project down from $750m to $715m, while the AFL will contribute $15m for construction.

Australian Prime Minister Anthony Albanese. Picture: NCA NewsWire / Jeremy Piper
However, the state government will now borrow against land sale or lease for commercial uses to generate $85m to fund the stadium, while $26m has been removed from the capital cost estimate due to already having been committed to existing works at Mac Point.

When asked about his impression of the business case at a media conference in Sydney on Friday, Mr Albanese said the report was being examined by the federal Infrastructure Department.

“I had a constructive meeting with the Tasmanian Premier yesterday,” he said.

“We’ll examine the detail [of the business case].

“We, in the past, have put $50m into Macquarie Point way back in 2012. And since then there’s been very little progress on that site.

“I think this needs to be viewed, though, as how will it transform urban development in that beautiful part of Hobart, in that beautiful state of Tasmania. So we see urban development and cities policies as being very important and that’s the context in which we will examine any proposal and we will do that.”

Mr Rockliff said it was his “expectation” that the federal government would “see the benefit of this project”.

Premier Jeremy Rockliff. Picture: Nikki Davis-Jones
Premier Jeremy Rockliff. Picture: Nikki Davis-Jones
“It is more than an AFL stadium, it is an urban renewal project,” he said.

“$249m is a reasonable ask. We are not asking any more or less than we need.

“We are working towards securing those funds ASAP and would like to see it in the next federal budget in May.”

State Labor Treasury spokesman Shane Broad said the business case was “a lump of coal in the Christmas stocking of the Tasmanian people”.

“The state is now up for $460 million plus $26 million that was allocated to Mac Point, plus the cost of land,” Dr Broad said.

“So the price has gone up through the roof.

“And the other key piece of information is that the cost-benefit analysis shows that the government, the state of Tasmania, will actually be $306 million worse off.

“So this project is a turkey once and for all.”

The stadium is being sold as the centrepiece of a broader Arts, Entertainment and Sports Precinct at Mac Point.

Labor MP Shane Broad.
Labor MP Shane Broad.
Greens leader Cassy O’Connor joined Dr Broad in lambasting the business case, describing it as “absolute folly”.

“When our hospitals are collapsing under huge strain and people are sleeping in tents, there is no business case for this stadium,” she said.

Ms O’Connor said Mr Albanese should “just say no” to the state’s funding request.

Tourism Industry Council Tasmania CEO Luke Martin, however, backed the business case, saying it “clearly demonstrates the stadium is far more than just an AFL ground, and anyone still running that line is really being disingenuous”.

“It presents a compelling vision for putting Tasmania on the map for major events, and the economic activity and jobs this will generate,” he said.

Tasmanian Hospitality Association boss Steve Old agreed, arguing that the proposed stadium’s “flow-on effect” for the state’s hospitality businesses would be “phenomenal”.

“The impact a stadium like this would have for our industry is significant,” he said.

The AFL has said the success of Tasmania’s bid for a team in the national competition is contingent on the new stadium being built.

STADIUM FAST FACTS:

Location: Macquarie Point

Capacity: 23,000 (30,000 for large events, including standing room)

Total cost: $715m

State government contribution: $375m (plus $85m in borrowings)

AFL contribution: $15m

Federal funding sought: $240m

Events hosted per year: 44

Anticipated construction start date: 2025

Completion date: 2028

First event held: Late 2028

Design life: 50 years

Alignment: North-south

SEE THE PLAN: New cost of stadium revealed
The Tasmanian government has released its much-vaunted business cas for a new waterfront stadium at Macquarie Point, revealing the project will cost less than originally anticipated and the federal government won’t be asked to contribute as much funding.

It comes after Premier Jeremy Rockliff met with Prime Minister Anthony Albanese on Thursday for a discussion about the proposal, which Mr Rockliff later described in a Twitter post as “very constructive”.

The state government has committed $375m to the stadium, while the AFL announced last week that it would chip in $15m for construction costs. A Tasmanian AFL team is seen as being contingent on the stadium getting the green light.

The business case, which was this week handed to the federal government, says an additional $85m to fund the project will be generated through borrowings against land sale or lease for commercial uses.

SEE THE PLAN: Tasmania’s new Arts, Entertainment and Sports Precinct, Macquarie Point

The stadium was originally projected to cost $750m, but the government has now revised that figure down to $715m, requiring the Commonwealth to contribute $135m less to the project than was originally being sought.

“The business case clearly shows this project stacks up and will be a jobs and economic bonanza for Tasmania, both during construction and ongoing,” Mr Rockliff said.

“The precinct would finally activate the Macquarie Point site, and be one of the nation’s best urban renewal projects.

“It will also allow us to unlock opportunities for additional social and affordable housing and development along the transport corridors – providing more homes for Tasmanians that need them.”

Premier Jeremy Rockliff says business case highlights benefits of proposed Mac Point stadium. Picture: Nikki Davis-Jones
Premier Jeremy Rockliff says business case highlights benefits of proposed Mac Point stadium. Picture: Nikki Davis-Jones
The Premier said activating the Macquarie Point precinct was “the last step” to securing a Tasmanian AFL team “once and for all”.

The Albanese government is now being asked to commit to a $240m funding contribution instead of $375m, accounting for a third of the total cost of the project. The business case says this funding would not need to flow until 2026-27, with $50m sought that year, $175m in 2027-28, and a further $15m in 2028-29.

The Tasmanian government will not ask for any ongoing funding or subsidy.

Federal Sport Minister Anika Wells expressed reservations about the stadium earlier this week, saying that “$375 million bucks for a stadium is a lot to ask”.

Mr Rockliff said on Wednesday that the project could not go ahead without federal funding.

The business case pitches the project as a “Stadium of the Future” and says its impact on the state’s economy and cultural reputation could be comparable to that of MONA.

It shows that the stadium would generate $300m in additional economic activity and 4200 jobs during construction, as well as $85m in additional activity and 950 jobs per year during stadium operations.

It’s expected at least 44 events could be hosted at the stadium per year, with 28 of those new to Tasmania.

The stadium is being billed as a component of a broader Arts, Entertainment and Sports Precinct at Mac Point.

“A new, roofed stadium at Macquarie Point would be far more than just a football ground,” the business case says.

“Macquarie Point Stadium presents an opportunity to offer something out of the ordinary that doesn’t exist anywhere else in the world: to create a stadium that not only caters to, and attracts, world class sporting, entertainment events, business and conventions, but also creates a diverse, integrated precinct activated 365 days of the year that belongs to all Tasmanians and attracts visitors worldwide.”

In addition to the cost of the stadium, the state government has agreed to spend $12m a year over 12 years supporting the team plus $60m on a high performance and administration complex.

Opinion polling released by Labor earlier this month revealed nearly 70 per cent of Tasmanians surveyed about the stadium proposal were opposed to the stadium. 


Business case reveals stadium cost lower than anticipated The Tasmanian government has release its much-vaunted business case for a proposed waterfront stadium at Mac Point which includes some shock new figures........... Rob Inglis 2 min read December 23, 2022 - 12:30AM 

New designs of what Hobart's new AFL stadium at Macquarie Point could look like. Images supplied by AFL Tasmania ................................... The Tasmanian government has released its much-vaunted business case for a new waterfront stadium at Macquarie Point, revealing the project will cost less than originally anticipated and the federal government won’t be asked to contribute as much funding. ................................... It comes after Premier Jeremy Rockliff met with Prime Minister Anthony Albanese on Thursday for a discussion about the proposal, which Mr Rockliff later described in a Twitter post as “very constructive”. ................................... The state government has committed $375m to the stadium, while the AFL announced last week that it would chip in $15m for construction costs. A Tasmanian AFL team is seen as being contingent on the stadium getting the green light. ................................... The business case, which was this week handed to the federal government, says an additional $85m to fund the project will be generated through borrowings against land sale or lease for commercial uses. ................................... The stadium was originally projected to cost $750m, but the government has now revised that figure down to $715m, requiring the Commonwealth to contribute $135m less to the project than was originally being sought. ................................... “The business case clearly shows this project stacks up and will be a jobs and economic bonanza for Tasmania, both during construction and ongoing,” Mr Rockliff said. ................................... “The precinct would finally activate the Macquarie Point site, and be one of the nation’s best urban renewal projects. ................................... “It will also allow us to unlock opportunities for additional social and affordable housing and development along the transport corridors – providing more homes for Tasmanians that need them.” ................................... Premier Jeremy Rockliff says business case highlights benefits of proposed Mac Point stadium. Picture: Nikki Davis-Jones ................................... The Premier said activating the Macquarie Point precinct was “the last step” to securing a Tasmanian AFL team “once and for all”. ................................... The Albanese government is now being asked to commit to a $240m funding contribution instead of $375m, accounting for a third of the total cost of the project. The business case says this funding would not need to flow until 2026-27, with $50m sought that year, $175m in 2027-28, and a further $15m in 2028-29. ................................... The Tasmanian government will not ask for any ongoing funding or subsidy. ................................... Federal Sport Minister Anika Wells expressed reservations about the stadium earlier this week, saying that “$375 million bucks for a stadium is a lot to ask”. ................................... Mr Rockliff said on Wednesday that the project could not go ahead without federal funding. ................................... The business case pitches the project as a “Stadium of the Future” and says its impact on the state’s economy and cultural reputation could be comparable to that of MONA. ................................... It shows that the stadium would generate $300m in additional economic activity and 4200 jobs during construction, as well as $85m in additional activity and 950 jobs per year during stadium operations. ................................... It’s expected at least 44 events could be hosted at the stadium per year, with 28 of those new to Tasmania. ................................... The stadium is being billed as a component of a broader Arts, Entertainment and Sports Precinct at Mac Point. ................................... “A new, roofed stadium at Macquarie Point would be far more than just a football ground,” the business case says. ................................... “Macquarie Point Stadium presents an opportunity to offer something out of the ordinary that doesn’t exist anywhere else in the world: to create a stadium that not only caters to, and attracts, world class sporting, entertainment events, business and conventions, but also creates a diverse, integrated precinct activated 365 days of the year that belongs to all Tasmanians and attracts visitors worldwide.” ................................... In addition to the cost of the stadium, the state government has agreed to spend $12m a year over 12 years supporting the team plus $60m on a high performance and administration complex. ................................... Opinion polling released by Labor earlier this month revealed nearly 70 per cent of Tasmanians surveyed about the stadium proposal were opposed to the stadium.

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