Premier Peter Malinauskas puts Lot Fourteen First Nations Cultures centre on hold after cost blowout

Premier Peter Malinauskas has suspended work on a Liberal-backed First Nations cultural centre after a multimillion-dollar cost blowout.

Premier Peter Malinauskas is rejecting “substandard” $200m plans for an Adelaide First Nations Cultures centre after a $50m cost blowout, freezing the project and ordering a review by “eminent Australians”.

Insisting he was determined the Liberal-initiated project at Lot Fourteen go ahead, Mr Malinauskas declared he saw no sense in investing $200m of public money “for a substandard outcome” that failed to deliver something of “international significance”.

The Centre for First Nations Cultures’ managing contractor had advised sticking to the $200m budget would require a significant building downgrade, he said, which would deliver a centre of “local state-level standard”.

Images of the final plans for the Aboriginal Arts and Cultures Centre at Lot Fourteen. Picture: Diller Scofidio + Renfro and Woods Bagot

An urgent review will be conducted by: former Morrison government indigenous Australians minister Ken Wyatt; former Labor NSW premier and foreign minister Bob Carr; and former BHP director and current Reserve Bank and Infrastructure SA board member Carolyn Hewson.

Mr Malinauskas said early remedial and foundational works had been completed but further progress was on hold, pending the review.

“We only get one chance to get this right. Put simply, it doesn’t make sense to invest $200 million of taxpayers’ money for a substandard outcome which will fail to deliver a centre of international significance,” he told the Purrumpa First Nations Art and Cultural Gathering in Adelaide on Monday morning.

The review, expected to cost less than $200,000 and to be completed by next Easter, raises the prospect of the third set of designs for an art gallery at the old Royal Adelaide Hospital site within seven years.

“I believe South Australians are tired of politicians taking the easy option today and leaving future generations to deal with the consequences later on.

“I am determined to ensure this is a project which delivers for our state for the long term, both culturally and economically.

“I am confident Ken Wyatt, Bob Carr and Carolyn Hewson will chart a path to ensure the centre is a landmark befitting the rich cultural history of our First Nations people.”

Images of the final plans for the Aboriginal Arts and Cultures Centre at Lot Fourteen, unveiled in August last year. Picture: Diller Scofidio + Renfro and Woods Bagot

Asked if there was any doubt the project would go ahead in the way he had promised, Mr Malinauskas said: “No. The early works that have been done up into this point are still purposeful, and we haven’t lost anything there, which is why we’ve allowed that exercise to continue.

“We’re simply conducting this assessment and this review to make sure that if we’re going to spend a significant amount of taxpayers’ money that it’s done in such a way that realises the ambition that this centre has always had.”

Chair of the Aboriginal reference group for the project, David Rathman said while it was “unfortunate” to hear about the decision to delay, it was a “reasonable” move to ensure the centre was built to reach its full potential.

“What we (need to) do is maintain a high level of focus on ensuring that we have a significant landmark that can attract cultural tourism to South Australia,” he said.

“I prefer a delay that’s based on making sure that we get the best outcome or the best result.

“It’s important that the Aboriginal reference group remains a key mechanism for consultation and that we will hopefully be central to any discussions that might take place about the future of the building itself.”

Opposition arts spokesman John Gardner said Malinauskas’ decision to delay the project could potentially blowout the future costs even more.

“Peter Malinauskas’ announcement is a bitter blow to the future of this crucial project and the South Australians who want to see it come to fruition,” he said.

“Peter Malinauskas has once again intentionally delayed a major infrastructure project – we’ve seen this with the North-South Corridor, new Women’s and Children’s Hospital and Flinders Medical Centre builds.

“This Labor review will take months to complete and further delays just mean the overall cost will skyrocket to a point where Peter Malinauskas walks away from a project that represents reconciliation and the celebration of our unique cultural offerings.”

Unveiling the $200m plans in August last year, the-then Liberal premier Steven Marshall said construction was planned to start by that Christmas and the Aboriginal Arts and Cultures Centre (AACC), as it was branded then, was scheduled to open in 2025.

“Putting Aboriginal art and cultures at the forefront, the establishment of the AACC will provide a symbol of reconciliation, celebrating our unique cultural offerings while creating an international tourism destination,” Mr Marshall said at the time.

Concept drawing of modern art gallery proposed for old Royal Adelaide Hospital redevelopment in late 2106. Source: supplied

Plans for a stylised “white box” housing a $250m contemporary art gallery at the site were revealed by The Advertiser in late 2016, as part of the Weatherill Labor government’s ultimately scuttled plans for a $1bn old RAH site redevelopment that included 1200 apartments.

Originally published as Premier Peter Malinauskas puts Lot Fourteen First Nations Cultures centre on hold after cost blowout