Nicholas Gruen labels Macquarie Point Development Corporation as ‘evasive’ over AFL stadium build
The independent economist who assessed Hobart’s proposed city stadium has accused the Macquarie Point Development Corporation of being “evasive” as cost blowout talks continue.
Tasmania
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The independent economist who assessed Hobart’s proposed stadium has accused the Macquarie Point Development Corporation of being “evasive” while he was preparing his report.
Lateral Economics chief Nicholas Gruen, who wrote the independent assessment of the stadium project commissioned by the state government, appeared before the Public Accounts Committee on Wednesday.
His 170-page report found the stadium would cost in excess of $1bn. He told the committee the MPDC had not been helpful with his work.
“I was happy with my own interaction with various parts of the Tasmanian public service with one exception, which was the Macquarie Point Development Corporation,” he said.
“I found it evasive and, despite undertakings the government had given to share
information with me if necessary on a confidential basis, it remained reluctant to share information with me throughout the process — for instance from its quantity surveyors.”
Dr Gruen said he was particularly disappointed with a KPMG subsequent report which he says ignored a request from the Tasmanian Planning Commission’s directive to provide modelling for an alternative project at the site for comparison purposes.
“Professional analysis should contribute to a process of dialogue that gets progressively closer to the truth,” he said, noting the KPMG report didn’t include the cost of the land, underestimated capital costs by $300m and over-estimated interstate visitor numbers.”
Dr Gruen maintained the state cannot build the stadium with a contribution of $375m, where its present cap is set.
MPDC CEO Ann Beach told the committee the final cost of the stadium had not yet been determined.
“We don’t have a cost resolved as yet. It depends on how we work through the design process,” she said.
“So in the Project of State Significance submission we were sitting around $775m and the final cost will depend on decisions around the inclusion which we’re working through as a detailed design.
“The final cost will depend on the final things that are resolved to include... so the amount of food and beverage, some of the specifications that we’re working through with users, and that will is part of the design process we’re going through at the moment.”
Wednesday’s hearing came as cricket officials expressed concerns about the proposed roof on the stadium and the effects of shadows cast by the roof’s supporting structure over where the centre wicket would be.
“We are in constant dialogue with the Tasmanian Government about the design for the Macquarie Point stadium,” Cricket Australia said.
“We want to ensure the stadium is fit for purpose for all forms of cricket so we can bring the best possible international and domestic cricket to the stadium and maximise benefits for all Tasmanians.”
The AFL yesterday reaffirmed that the stadium must include a roof.
“There has been no change to the conditions contracted for a 19th AFL team licence in Tasmania which includes the commitment of a 23,000-seat, roofed stadium at Macquarie Point,” AFL executive general manager Corporate Affairs, Government and Communications Brian Walsh told the Mercury.
Premier Jeremy Rockliff said the government was “working through all those challenges”.
“Most importantly this is not just an AFL stadium, it is a multi-purpose stadium that needs to cater for events, other codes of sport including cricket and of course AFL,” Mr Rockliff said.
“There will be design challenges in accommodating that but through very sensible conversations, working together, we’re committed to a roof and we are continuing with designs to cater to every eventuality.”
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