Ms BURNET question to TREASURER, Mr ABETZ
Treasury’s response to the Planning Commission’s damning rejection of the stadium says the stadium will increase the state’s debt, but this debt should be paid off within the life of the stadium’s asset. In the Public Accounts Committee (PAC) last week, the government’s Coordinator-General said of the stadium that, in his view, there’s no reason why the government needs to repay the capital. In his view, it’s perfectly acceptable for Tasmanians to pay up to $70 million a year on interest on the stadium without paying off the debt. It’s bad enough you’re willing to put the state in debt to pay off this vanity project over its lifetime, but it’s unthinkable to put Tasmanians on the hook for tens of millions of dollars a year with no end in sight. Tell us, Treasurer, how much will it cost Tasmanians to service the stadium debt each and every year?
ANSWER
Honourable Speaker, what I can say to the honourable member is that it is unthinkable that Tasmanians would forgo a $600 million injection into our economy courtesy of the federal Labor government and the AFL. If we don’t go ahead with that stadium, $600 million that was coming our way will not be coming our way. That to me is unthinkable.
For us to be able to get that $600 million to come our way, guess what? We’ve got to make our contribution as well. That is not an unreasonable proposition, I would have thought, for the average person trying to think through the issues. Will there be debt involved? Of course there will be, but if you took that sort of approach you would never borrow money to make money. That is what those of us that have been in business do – you borrow money, with the anticipation that the business will make money to be able to service the debt. This is a project that will –
Ms BURNET – Point of order, honourable Speaker, Standing Order 45, relevance. The question was: how much will it cost Tasmanians to service the stadium debt each and every year?
The SPEAKER – That does refer back to the original question.
Mr ABETZ – If you were to ask that same question about your house mortgage, it will vary.
Ms Burnet – We’re talking about the stadium.
Mr ABETZ – We are talking about a stadium. Can I let you in on a bit of a secret? When you borrow money, and especially government, you roll over the bonds for borrowing about every five years – they are renewed – and that then depends on the pressures on the market for borrowings, interest rates, et cetera.
Mr Willie – Credit rating.
The SPEAKER – Order.
Mr ABETZ – Credit rating is another issue, and I take the interjection of the Leader of the Opposition. It tells us it is a multi-factorial issue about which you ask, and to ask me what it is going to be in five- or ten-years’ time, it is like with a house mortgage. When interest rates go up, there is an extra burden on households. When interest rates go down it is a bit easier for households. Therefore, if you were to ask the average household, can you say to the exact dollar and cent how much you will be paying on your mortgage each and every year, the answer is that it cannot be determined because of all those variations.
Similarly, not surprisingly, it is with the stadium. But what I can assure the member for Clark and indeed all those who are interested in this, that it is all serviceable and within the budget.
The SPEAKER – The honourable Treasurer’s time has expired.
SUPPLEMENTARY QUESTION
Ms BURNET – A supplementary question, Speaker?
The SPEAKER – I will hear the supplementary question.
Ms BURNET – The government said that you could provide the most up-to-date costs of this stadium before the vote. Clearly the cost of debt servicing is a part of these costs. What advice are you going to get from Treasury and are you going to bring that back to the House in relation to servicing that debt?
Mr ABETZ – I think I have already indicated to the honourable member the difficulties in getting the exact figures. It is like with any borrowings, interest rates go up and down, things that are beyond our control, and Treasury has given advice and indeed will continue to give advice and in relation to that. In relation to that, there will be the opportunity at the Estimates very shortly where the honourable member can ask Treasury about those issues.
Mr Bayley – After the vote, Treasurer.
