Calls for Palaszczuk government to release Gabba redevelopment costs
The state government is under pressure to release Gabba redevelopment costs after it was revealed the original $1bn figure came from ‘a press release’.
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The Palaszczuk government is under pressure to release costs associated with the Gabba redevelopment after the Auditor-General told a parliamentary committee the original $1bn figure came “from a press release”.
Deputy Leader Jarrod Bleijie moved a motion in parliament on Wednesday attempting to force the government to table “all business cases, studies, reviews, assessments or similar work relating to the cost of any redevelopment of the Gabba”.
It comes after Queensland Auditor-General Brendan Worrall told the State Development and Regional Industries Committee this week that he believed there was never “a business case supporting the billion dollars. I think you’ll find the source of that was from a press release”.
Mr Worrall was being questioned over a reference to the $1bn estimated cost of the redevelopment of the stadium in his Major Project 2022 report, released late last year.
“In your report you say that the expected cost was a billion dollars. We are reading recently that the actual figure that the government is talking about now is $2.7 billion. That is a massive increase. Was the government able to explain how that happened, or had it not happened when you did your report?” Mr Worrall was asked by the LNP’s Michael Hart.
“There are a couple of things I would say there. I do not think there ever was a business case supporting the billion dollars. I think you will find that the source of that was a press release, from my understanding,” the Auditor-General said.
Pressed further on whether the number was “grabbed out of mid-air”, Mr Worrall said “I am just stating what I know”.
“That is my understanding of where the billion dollars came from,” he said.
Premier Annastacia Palaszczuk first floated $1bn back in April 2021 – before Brisbane had secured the 2032 Olympic and Paralympic Games – when the government first announced it would be redeveloped from 42,000 seats to 50,000 seats.
At the time she said final costings were being worked out. By August 2022, the Premier had conceded that figure was likely to rise due to ballooning construction and labour costs, saying the $1bn was based “cost estimates at the time”.
The Premier’s office did not answer questions on where the initial $1bn cost came from and whether there was a business case for the Gabba, but a spokesman for Deputy Premier Steven Miles said the International Olympic Committee required a business plan for the bid.
“A Project Validation Report is underway,” she said.
The Courier-Mail understands the business plan included the approximate $1bn figure, but it was not an in-depth business case, and has not been published publicly.
Last month Ms Palaszczuk announced, alongside Prime Minister Anthony Albanese, that the Gabba would be demolished and rebuilt for $2.7bn – 170 per cent more – with the state government set to foot the bill.
Dr Miles said Wednesday the original figure was “costed in 2020 dollars”.
“There was always going to be a cost escalation,” he said.
“I’ve seen the opposition Treasury spokesman (David Janetzki) say that if the building costs have only gone up 40 per cent, why is it more than that?
“Well, that was in one year. The venue will be built in 2026 – which is more than one year away.”
Mr Bleijie said given the cost of the Gabba had climbed significantly, the government should release all associated business cases by the end of the month.
“If the Palaszczuk Labor Government choose to sneakily use their numbers to amend the motion in any way, Queenslanders will know full well Premier Palaszczuk believes the games belong to her and not Queenslanders,” he said.
“If the Palaszczuk Labor Government refuse to debate the facts as presented, Queenslanders will know full well Premier Palaszczuk is hiding the truth from Queenslanders; and has no respect for openness and transparency and only cares about her own Olympic image.”
The LNP’s attempt was ultimately unsuccessful, with the motion amended by the government.