With a preferred builder now selected for the Macquarie Point stadium, the Rockliff Government must outline its approach to the contract process for the project as an urgent priority – especially around costs.
There is simply no way $1.13 billion is still a live possibility for the stadium price tag. Not only has AFL media reported the working price is already hundreds of millions of dollars higher than that figure – before negotiation over conditions has even started – but the government itself has been signalling for months that the price will escalate.
Far from the clear commitments on a cost cap we saw last year, we’ve seen the Liberals trying to gradually get people used to the idea the stadium price will rise. It’s not been subtle either – the Premier and multiple Ministers have actively entertained the possibility in Parliament and the media.
The government made a clear commitment to the Parliament that public expenditure on the stadium would be capped at $875 million. But that was based on a cost estimate for the stadium that’s now clearly been left behind. So now what?
With cost escalations looking inevitable, and the federal government already ruling out more funding, there are three major questions the government must answer.
Who is going to pay for these increasing costs?
If taxpayer funding is set to rise above $875 million, how will the government involve Parliament in reviewing this spend?
And what information will the public be provided before the contract is signed?
The typical Liberal way of handling this situation would be to trying to avoid scrutiny by releasing the cost of the stadium in the shadow of Christmas then immediately signing the contract before any backlash takes hold. That sort of cynical ploy must be ruled out.
Taxpayers are paying for the stadium, and they deserve proper transparency about the costs of the project. Not only that, but it would be very risky for the government to break the commitments they made to the Parliament without their new approach being properly scrutinised and any additional funding reviewed.
Let’s remember, this stadium was only approved on the basis of one key promise – that taxpayer costs would be capped. If that promise can’t be kept then Parliament must be allowed to decide whether it is prepared to accept any increased costs before pen is put to paper on the contract.
