Macquarie Point progress report: how much taxpayer money is being spent, what’s been achieved
It’s been 10 years since then-infrastructure minister Anthony Albanese announced the development of Macquarie Point. So what’s been achieved at the site in that time and how much has it cost? DEEP DIVE INTO MAC POINT>>>
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Great white hope or white elephant?
When it comes to the long-gestating Macquarie Point site, the answer you get will depend on who you ask.
The project to revitalise the prime piece of real estate on Hobart’s waterfront was first set in motion a decade ago, when the then-federal and state Labor governments signed an agreement to develop the 9.3ha site.
Anthony Albanese was the Infrastructure Minister at the time, committing $50m to remediating the area, which was used as an industrial precinct for more than 150 years.
At a media conference in Hobart in June, a month after he was sworn in as Prime Minister, Mr Albanese described the level of progress to date at Macquarie Point as “appalling”.
The Macquarie Point Development Corporation (MPDC) says that once the site is fully developed it will be an “iconic destination and home for residents and visitors to Hobart”, while also promoting “significant growth in commercial and cultural real estate and public space on the edge of the CBD”.
It’s estimated the development of Mac Point will unlock more than $1 billion of investment and support 9800 jobs.
But the ambitious undertaking has been dogged by controversy and a perception of inertia.
So what’s actually been achieved at the site since the MPDC was established in 2012? And how much taxpayer money has been pumped into the project so far?
THE WORK SO FAR:
The first major hurdle to overcome has been the task of remediating the site. The MPDC has said it has had to excavate and remove more than 10 Olympic swimming pools’ worth of contaminated soil, as well as historic oil and gas pipelines.
As at 2021, 85 per cent of Macquarie Point has been remediated.
An MPDC spokesman said remediation work of this scale required “significant investment” and it was “critically important to ensure the site is ready and safe for future development”.
“The task has been large,” he said. “In fact, since its establishment, the corporation has remediated and removed more than 65,000 tonnes of contaminated soil, removed more than 2.3 million litres of contaminated groundwater, and removed nearly 1 kilometre of deteriorated and redundant oil and diesel pipelines across the site.”
There are currently 19 Tasmanian businesses already operating in the area, and interim developments have been undertaken to “maximise commercial return” while remediation works continue. These include the Red Square, the Goods Shed and Yard, the Edible Precinct, and the LongHouse.
The MPDC will oversee the development of seven distinct “zones” at Mac Point: the Precinct, the Gateway, the Promenade, the Underground, the Park, the Goods Shed, and the Escarpment. There’s been movement on the latter two zones, with the Goods Shed already hosting events under a long-term lease to the Hobart Brewing Company and the first land release for the $100m mixed-use Escarpment development having been put to market.
WHAT’S STILL TO COME:
Independent Clark MP Andrew Wilkie stood alongside Mr Albanese 10 years ago when the initial federal funding injection was announced to kickstart the Mac Point project.
“I said at the time that the state government better not stuff it up and it turns out to have been a stuff-up on steroids,” he said.
“The Macquarie Point Development Corporation’s own plan predicted great progress by now, and the state government as recently as March 2021 promised a skyline thick with cranes by now.
“But all we’ve got is a new road needing to be ripped up, some garden beds and a few other odds and sods. The only real progress has been the creation of a series of flash office spaces for the corporation.”
Under the Hobart City Deal, an Antarctic and Science Precinct at Macquarie Point has been proposed, which would co-locate major research facilities at the site and promote Hobart as the gateway to the southernmost continent. The federal government is now mulling over the business case for the precinct.
Another key pillar of the waterfront site will be the 13,000 sqm truth and reconciliation art park, which the MPDC characterises as “the spine of the entire development”.
Work is under way to co-design the space with the Aboriginal community. The park will form part of Mac Point’s District land release, with parklands to be used for large-scale events and festivals. It’s been described as a “meaningful and culturally respectful” space designed to “encourage a sense of connectedness within community” and promote reconciliation.
Overall, the District – for which the corporation is now seeking interest from potential proponents – will occupy a 2.7ha slice of Mac Point and includes three land parcels: the Gateway, the Promenade, and the Underground.
Despite reports that the AFL is pushing for the state government to build a multipurpose stadium at Mac Point to support a potential Tasmanian team in the national competition, the MPDC has said that such a project doesn’t accord with its master plan or the Mona Vision for the site, adopted in 2016 and endorsed by the Hobart City Council.
Mr Wilkie believes there hasn’t been anywhere near enough progress made at Mac Point over the past decade – and for that he lays the blame squarely at the feet of the state government.
“The project has been entirely without political leadership,” he said.
Former MPDC CEO Mary Massina finished up in the role in mid-July after five years at the helm. An independent review of the organisation was undertaken by KPMG following allegations of bullying and inappropriate spending raised in state parliament by independent Clark MP Kristie Johnston.
Last month, the KPMG audit at Mac Point found that key contracts signed by the corporation since July 2017 could not be located, including one that went more than 10 times over budget. The report noted that there was no evidence of “deliberate actions” to circumvent rules.
At the time the report was released, Ms Massina said: “’I note that the KPMG audit and grievance process raised during my time at Macquarie Point have both been subject to arm’s length investigation and both have found no wrongdoing on my behalf.”
HOW MUCH HAS BEEN SPENT:
Macquarie Point has had a total of $128.2m in taxpayers’ money thrown at it since the establishment of the MPDC in 2012.
Firstly, the federal government chipped in $45m for the remediation works.
Then the state government provided $5.2m for the ongoing development of the site in 2020, followed by a further $78m to flow over three years to 2024.
State Development, Construction and Housing Minister Guy Barnett said the development of Macquarie Point offered a “significant one-time-only opportunity for Hobart and Tasmania”.
“With (remediation) work now well under way, Macquarie Point is moving into the development delivery phase,” he said. “Developments of this nature are complex and take many years.”
“Unlocking the development’s economic potential and job creation is the priority for the government and this is what we are focused on through this new phase.”
Mr Wilkie, on the other hand, said Mr Barnett and his colleagues needed to be doing far more to ensure the development was completed in a timely fashion.
“What needed to be done 10 years ago, and needs to be done now if the mess is to be fixed, is for the Premier to get all stakeholders into a room and tell them they’re not leaving until they’ve agreed in full on a plan to quickly restart the project,” he said.
“The invite list must include at least the ministers and secretaries of the relevant state departments, the Lord Mayor of Hobart and the heads of TasPorts, TasWater and TasRail.
“To be clear, I don’t blame public servants for this mess. All blame rests squarely on the shoulders of state politicians who have been happy to be hands-off and to let the project wander aimlessly.”
With the majority of the remediation work at the site now complete, the MPDC and the state government will be feeling the pressure to ensure that greater progress is visible at Macquarie Point.
Because if they don’t, people’s patience for the project threatens to wear dangerously thin.
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