Stadium will bankrupt state, Greens say as government vows to press ahead
The government is determined to press ahead with the Macquarie Point stadium despite a massive deterioration in the state’s financial position, Liberal minister Felix Ellis said on Friday.
Tasmania
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The government is determined to press ahead with the proposed Macquarie Point AFL stadium to boost the economy despite a massive deterioration in the state’s financial position, Liberal minister Felix Ellis said on Friday.
The state government spent $1.2bn more than it budgeted for last financial year, leading to a $1.5bn budget deficit for 2023/24.
The $1.2bn overspend includes nearly $600m more for victim-survivors of child, sexual abuse $363m more than expected on employee expenses, $190m more than budgeted on “supplies and consumables” and $120m more on grants, largely energy bill relief.
The Greens want the government to abandon the stadium, but Minister Felix Ellis said it was the sort of investment needed to grow the economy.
“Infrastructure like that is long-term, intergenerational infrastructure that will provide opportunities for Tasmanians for decades,” he said.
“We need to grow our economy here in Tasmania, and that, of course, means that we’re able to grow our revenue so that we can support the essential services that Tasmanians rely on. “We’ve been really clear we need to deliver the stadium so that we can deliver the economic benefit of thousands of jobs in construction, hundreds of apprentices and of course, our own team in the AFL.”
The stadium is expected to generate economic benefits valued at between 35c and 73c for every dollar invested.
Greens spokesman Vica Bayley said the state’s balance sheet was in “terrible” shape.
“This is a stadium that will bankrupt the state, and it’s a stadium that will come at the expense of the health, housing and education investment that Tasmanians need and deserve,” he said.
“Building a stadium with a $300m deficit was a bad idea, but with the deficit now $1.5bn, bulldozing ahead with this stadium is absolutely cooked.
“When Tasmania can’t afford to put the investment into the housing, health and education services that Tasmanians need and deserve, pushing ahead with a billion-dollar stadium is clearly both reckless and irresponsible.”
Labor’s Treasury spokesman John Willie said the governments had presided over a decade of financial mismanagement.
“It’s quite clear that Treasurer Ferguson has lost control of the budget, and that’s concerning, I think, for all Tasmanians,” he said.
“I think that there are some things that this government could do to help the situation, not slashing public services.
“That is a false economy, and it could lead to further costs down the track.
Mr Willie said the government had presided over “a decade now of budget mismanagement”. “We’ve got record deficit and debt and not much to show for it: public services at breaking point, an economy that’s flat-lining, young people leaving the state in droves.”
Budget deficit blows out 400 per cent
The government earned $8.5bn and spent $10bn last financial year — delivering a record budget deficit four times higher than predicted.
The 2023/24 budget ended up $1.5bn in the red rather than the $297m originally forecast, Treasury figures show.
The $1.3bn overspend includes $363m more than expected on employee expenses, primarily in health; $190m more than budgeted on “supplies and consumables” and $120m more on grants, largely energy bill relief.
The government earned $169m more than was predicted, mainly through tax receipts although GST revenue — at $3.3bn — was down $139m.
The government saved by underspending on infrastructure, delivering $921m of the $1.2bn pledged.
Net debt stands at $3.5bn.
Treasury’s Preliminary Outcomes report notes that an increase in expenses relating to the Commission of Inquiry played a large part.
“During 2023-24, the Department of Justice engaged an independent actuary to prepare an estimation of the State’s abuse-related liability that includes both current and future redress and civil claims,” it said.
“The actuary has assessed the liability at $646.9m as at 30 June 2024, which is an increase of $571.2m from 30 June 2023.”
Treasurer Michael Ferguson said the deteriorating budget position reflected the government’s significant investment in cost-of-living relief measures, recruitment of frontline workers and funding for claims of child sexual abuse.
“The increase in employee expenses recognises the significant investment the Government is making in the recruitment of frontline workers, including in health, education and law enforcement and in the delivery of essential services.
“Tasmania has not been immune from the national economic headwinds and the Government has implemented a range of measures to cushion the cost-of-living impacts for Tasmanians.”
He said he was prepared to cop any criticism for the impact on the budget of doing the right thing by abuse victim-survivors.
“It will hurt the budget, and this will be expensive, but we will need to do it,” he said.
“Any funds paid to implement the recommendations will be spent to keep kids safe, have restorative practices within our departments, and provide justice to those who deserve it.“
Greens deputy leader Vica Bayley said it should be becoming clearer that the state could not afford an AFL stadium.
“The stadium was already a bad idea when this year’s deficit was forecast at $300m – especially given the need for increased investment in health, education, and housing,” he said.
“But with the budget now another $1.2bn worse off, bulldozing ahead with this project is absolutely cooked.
“If they had any sense, the Rockliff government would take a look at the books, use their common sense, and scuttle the stadium.”
Labor treasury spokesman Josh Willie said the government had lost control.
“Tasmanians will be rightly wondering why they have nothing to show for this budget mismanagement.
“Except for an economy that is flatlining, public services at breaking point, and plane-loads of working-age Tasmanians leaving the state for better opportunities elsewhere.
“Our health system is falling apart, education outcomes are lagging the nation, we are in the middle of a housing crisis and crucial infrastructure projects like the Spirits are significantly delayed and outrageously over budget.
“The budget deficit is now nearly five times worse than at the height of Covid. Tasmania can’t afford the Liberal-Lambie Coalition.”
Originally published as Stadium will bankrupt state, Greens say as government vows to press ahead
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