Hobart AFL stadium to leave ‘$1.8bn debt’

A bombshell report has found the proposed Hobart AFL stadium would cost almost twice its original estimate and saddle taxpayers with a massive debt.

The proposed Macquarie Point AFL Stadium in Hobart. Picture: Supplied

You can now listen to The Australian's articles. Give us your feedback.

You can now listen to The Australian's articles.

Hobart’s controversial AFL stadium will cost almost twice as much as claimed, damage Tasmania’s “economic welfare” and saddle taxpayers with $1.8bn of debt, says the state planning commission.

Highly critical conclusions by a Tasmanian Planning Commission panel late on Monday led to calls by the project’s opponents for it to be scrapped – and for Premier Jeremy Rockliff to ­resign. “The panel finds that the costs of the project are approximately double its estimated benefits,” the draft integrated assessment report found.

“There would, by implication, be a reduction in Tasmania’s economic welfare from implementing the project.”

The panel found the government’s cost-benefit analysis “understated” the costs for the 23,000-seat stadium and “overvalued” the benefits. “It excludes the capital expenditure in the surrounding precinct needed for the stadium to be used, safely and effectively, for the purposes for which it is intended,” the panel found.

The panel found the stadium would cost $1.41bn – almost double the government’s $753m estimate – and impose a significant debt burden.

“Under its central scenario, construction of the project would require the state to borrow – or otherwise finance at the same or greater cost – approximately $992m,” the panel found.

“At the end of 10 years of ­operation the additional debt ­directly associated with the project’s construction and operation would be approximately $1.86bn.

“The state’s debt servicing costs are estimated to be $76m higher per annum over the first 10 years of operation than would be the case if the project is not constructed.”

The panel was unimpressed with the government’s argument the stadium would create up to 238 ongoing jobs. “This is a relatively small benefit for an investment of this magnitude,” it said.

Anti-stadium Our Place group said the report was a “shocking indictment” of the proposal, which is a condition of the Tasmania Devils team entering the AFL competition.

“The government must pull this project from the Planning Commission now and save Tasmanian taxpayers the $60m ­allocated for consultants and put an end to the division the project has generated,” said the group’s Roland Browne.

“The government must start work tomorrow on getting AFLW/AFL teams up in Tasmania on terms that will not bankrupt the economy.”

Mr Rockliff was yet to comment but Business Minister Eric Abetz said the government “remained committed” to the project. “The report does appear to underplay the immense benefits of the stadium and the precinct it will unlock, including the key outcome of securing our own AFL/AFLW team,” he said.

He was concerned the report’s “wide scope” could lead to delays “to an already tight timeline”. “We cannot afford any ­delays,” he said.

The Premier’s deal with AFL requires the stadium to be 50 per cent complete by October 2027, and ready to host matches in 2029.

“Ultimately, the decision on whether the project will proceed will be made by parliament,” Mr Abetz said.

Mr Rockliff has repeatedly ­insisted state government funding for the stadium would be capped at $375m.