The stadium is likely to cost $1.7 billion, and could cost up to $2.5 billion, economist Nicholas Gruen has found in his updated analysis of the stadium. Under the Liberals, that’s going to mean more pain for Tasmanians already struggling to access the essential services they need.
Gruen’s updated cost-benefit analysis of the stadium takes into account higher project costs, additional projects necessitated by the stadium and a downgrade in the state’s credit rating. He finds the stadium will be a net negative cost to Tasmanians, more than was considered even a year ago.
Gruen estimates the net cost of the stadium is now well over $1 billion, with a cost of $1,831 per Tasmanian. But substantial risks on the stadium project mean it could have a net cost of $1.84 billion, with the cost to each Tasmanian estimated at $3,200.
We’ve always known the Liberals were inflating the supposed benefits of the stadium, but Gruen’s analysis lays this deception bare. The stadium isn’t infrastructure for the public good like a hospital or school – it’s going to have a net negative impact on Tasmanians.
In real terms, Gruen estimates the stadium is likely to cost $1.7 billion, but could cost up to $2.5 billion. By the end of next decade, state debt will be $2.3 billion higher because of the stadium.
That’s a breath-taking cost increase. The Liberals have assured Tasmanians the stadium won’t cost more than $1.13 billion, but Gruen confirms this just isn’t true, with the construction market growing even more volatile since the estimate was made.
We’ve been trying to extract from the Liberals just how much they think the stadium price is set to go up with the conflict in the Middle East jacking up fuel prices. They need to honour the will of the Parliament who passed a Greens’ motion calling for an update on stadium costs.
The Liberals have already chosen to slash thousands of jobs in essential services while continuing with a stadium which is tanking their budget bottom line. With the stadium price set to go up, we know that’s going to mean more pain for Tasmanians under Treasurer Abetz.
At the very least, Tasmanians deserve a government who will be honest with them about just how much they’re going to have to stump up for a stadium we don’t need and can’t afford.
