Mr BAYLEY question to TREASURER, Mr ABETZ
The Premier has now admitted stadium costs have risen to $1.13 billion. It’s the fourth blowout since the promise to not spend a ‘red cent more’ than $375 million. Treasurer, your government has consistently misled Tasmanians about what this stadium will cost them. Both the Tasmanian Planning Commission report and the Treasury’s PFO were clear, the cost estimates are optimistic and there’s a significant risk of further blowouts.
Worse still, the $1.13 billion price tag doesn’t include key elements, such as the uncosted conditions, including stormwater and onsite remediation; additional site works; improving footpaths; the car park; sound abatement for the Tasmanian Symphony Orchestra; and a transport system, including event buses. All before the plans have been finalised, the contracts have gone to tender, and a shovel has broken the ground. Meanwhile, construction costs are rising.
As Treasurer, how will you pay for it? With essential services already underfunded, how much is too much for another stadium in Tasmania?
ANSWER
Honourable Speaker, I thank the member for the question. Part of his question was about misleading, yet his question was misleading because what the Premier said, and it’s very clear, is that there would be a $375 million contribution and then the shortfall would be met by borrowings.
Mr Bayley – Who borrows the money?
Members interjecting.
Mr ABETZ – That was clear in the business case, and to deliberately mislead the Tasmanian public.
Members interjecting.
The SPEAKER – Order. I ask that the Treasurer be allowed to provide his response, please. He still has another 2 minutes and 20 seconds. You can then ask a supplementary if it’s relevant. Thank you.
Mr ABETZ – To then suggest that it was only going to cost $375 million, when we fully know that the federal Labor government is willing to contribute $240 million and the AFL is willing to contribute $15 million to the capital cost. When you deliberately take that out of the question, it indicates a desire to mislead, so please don’t accuse my Premier of misleading the people of Tasmania.
One of the biggest costs this stadium will face is delays and the new figure, I would imagine, has embedded in it tens of millions, if not $100 million, because of the delays, so the quicker we can get this venture under way, the cheaper it will be, and that has to be something that we all recognise in this place. Delay means extra cost.
I also inform the honourable gentleman that there is a huge difference in budgetary matters between capital expenditure and operational expenditure, and to try to intermingle the two is, with respect, either highly ignorant, which I don’t suspect from the Deputy Leader of the Greens, and that is why I will say it is misleading because the honourable gentleman does know the difference between capital expenditure and operational expenditure, and to suggest that somehow capital expenditure can be put into the operational budget and then be there day after day is simply not the case.
Dr Woodruff – The $50 million a year we have to pay on the debt is part of the operational?
The SPEAKER – Dr Woodruff.
Mr ABETZ – What the parliament and the people of Tasmania can be assured of is that we will deliver the stadium for the huge benefits it will provide to the people of Tasmania.
The SPEAKER – The honourable Treasurer’s time has expired.
SUPPLEMENTARY QUESTION
Mr BAYLEY – A supplementary question, Speaker?
The SPEAKER – I will hear the supplementary question.
Mr BAYLEY – The Treasurer talked about the $240 million from the federal government but that doesn’t mention the stadium, and that’s for urban renewal. Both the Pre-Election Financial Outlook (PEFO) and the Planning Commission raised significant questions about whether that money will be forthcoming and raise it as a budget risk. Have you sought assurances from the federal government that that money will come, even though there is no housing as part of your development and the Planning Commission is explicit that this is not an urban renewal development?
Dr Woodruff – Good question.
Mr ABETZ – Somebody had to say it was a good question, even if it was the Leader of the Greens. Can I say that the Prime Minister has been very clear in relation to this. He’s been asked about this on a number of occasions on Tasmanian radio and interviews and he has said that the money federal Labor is making available is for the precinct, and, of course, the stadium is a fundamental part of the precinct.
