Mr BAYLEY – It’s been established that the stadium will blow out to over $800 million. It’s now established that there is a $200 million shortfall. Both the Budget and the development application acknowledged that additional expenditure outside of the forward Estimates will have to be met through short‑term borrowings by Macquarie Point Development Corporation, and it is acknowledged that those liabilities will be transferred with the stadium to Stadiums Tasmania.
Do you accept that servicing that debt that Macquarie Point takes on and passes on to Stadiums Tasmania will come at a cost to the general government sector, and therefore will mean that the taxpayer will be up for well more than $375 million? You must accept that, Treasurer.
Mr FERGUSON – I hear what you’re saying in the question. I think you were referring to yesterday’s Estimates when you said that it’s been established that there’d be a blowout. I don’t think that’s quite right.
Mr BAYLEY – It’s established in the documents that have been submitted to the Planning Commission.
Mr FERGUSON – I completely understand where you’re coming from. The CEO, Anne Beach, did say on the day of lodgement with the Tasmanian Planning Commission that while the estimated construction costs are higher than the project budget, it’s going to be a value management exercise to bring it into scope. That was a statement made by the CEO on the same day that those documents were provided to TPC. I would have to emphasise –
Mr BAYLEY – The same day of the blowout.
Mr FERGUSON – I’m sorry?
Mr BAYLEY – The same day it was confirmed they had blown out significantly.
Mr FERGUSON – No, that’s not –
Mr BAYLEY – Do you really believe that?
Mr FERGUSON – No, I think you’re misrepresenting others here, because Ms Beach was saying that there is going to be continued work to bring it into budget. These are better questions for MPDC and the Minister for Sport and Events.
I’m happy to answer the question on borrowings. It will depend entirely on the structure of any arrangements that are reached between the organisation and private proponents. Short‑term borrowings to achieve capital outcomes – it will depend entirely on the deal. It’ll depend entirely on what long‑term revenue options sit as part of those deals to service those borrowings. I don’t believe it can be at this stage. I don’t believe any assumptions can be made about who will be paying the cost of servicing those borrowings. You’ve alleged in your question that it’ll be the state.
Mr BAYLEY – That’s stated in the documents, Treasurer.
Mr FERGUSON – Mr Bayley, it will depend on the nature and the structure of any commercial deals that are reached between the organisation and private players in terms of their contribution to the stadium, the assets and some of the services that might be provided. There may well be revenue models that help to either immediately retire or short-term retire those borrowings or to service them into the longer term.
Mr BAYLEY – Is there a Cabinet subcommittee that’s overseeing the expenditure for this project?
Mr FERGUSON – I never talk about Cabinet; only the Premier can do that. I’ve had 11 years of impeccable history of not talking about Cabinet.
Mr BAYLEY – You can at least tell us whether a committee has been established?
CHAIR – Order, Mr Bayley.
Mr FERGUSON – There is a steering committee, which I’ve referred to earlier today, that Mr Craigie sits on.
Mr BAYLEY – A Cabinet subcommittee.
Mr FERGUSON – I wouldn’t be in a position to discuss with you Cabinet arrangements. It’s not my right to do that.
