Arafura Games cost blows out as Government doubles budget to $8m amid economic crisis
THE Government has quietly doubled the budget for the Arafura Games to $8 million without any idea of the economic benefits it will bring
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THE Government has quietly doubled the budget for the Arafura Games without any idea of the economic benefits.
When Labor announced in 2016 its plan to bring back the Games, Chief Minister Michael Gunner pledged $4 million towards it.
That was increased to $6 million in 2018 with a $1.9 million treasurer’s advance tacked on later. So far, $900,000 has been spent.
Arafura Games Minister Natasha Fyles said the $4 million was only intended to “begin the process of restarting the Games”.
But when the budget was announced by Mr Gunner in 2016, there was no mention of it being an “initial” amount.
“At the beginning, the number of countries, athletes and sports taking part was unknown,” Ms Fyles said.
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“As work has progressed on bringing back the Games, more definitive figures have become available, and therefore a budget more in line with participant numbers has been approved.”
No cost benefit analysis has been done to estimate what economic impact of the Games.
When asked how much the Government expected the Games to bring to the Territory, Ms Fyles referred to a $10 million figure quoted by the NT Chamber of Commerce in 2011.
At the time, the chamber estimated scrapping the Games cost the economy $10 million.
However, that figure was based on far higher participation figures.
In 2011, the final year of the Games, 1600 athletes took part.
So far, only 900 athletes have signed up.
The Government expects about 1000 by the time the Games begin.
Opposition Leader Gary Higgins said the Games were scrapped for a reason.
“At its height in the 1990s, the Games attracted nearly 3000 participants. That figure was progressively falling while the cost in 2011 was $3.5 million for just over 2000 participants,” he said.
“We have repeatedly called for a cost-analysis of the event but that has been rejected by Labor.
“We have said in the past, we’re happy for the Games to succeed but we remain worried that it will be another expensive exercise which the NT cannot afford.”
Ms Fyles said the Government would carry out an economic impact assessment after the Games to determine the return on its investment.
The government has struggled to attract volunteers to staff the Games.
Emails have been sent to public servants requesting them to give up their time to help out.
The Games were scrapped by the CLP government in 2012 because they weren’t providing value for money.
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Then-sports minister Matt Conlan said it was “in the interests of the NT and in the interests of the Budget” to shelve it.
“It’s $3.5 million for not a lot of return,” Mr Conlan said.
The Arafura Games was the responsibility of Lauren Moss as Tourism and Culture Minister, before being switched to Ken Vowles in late 2017.
After his sacking in December, it was handballed to Ms Fyles, who is also Attorney-General and Health Minister