Hobart’s AFL stadium ‘dead’ after Premier Jeremy Rockliff’s cost handpass

Opponents of Hobart’s promised AFL stadium have declared the controversial project dead, in the wake of Premier Jeremy Rockliff’s shock decision to cap taxpayers’ exposure at $375m.

An artist’s impression of the proposed Macquarie Point AFL stadium in Hobart.

Opponents of Hobart’s promised AFL stadium have declared the controversial project dead, in the wake of Premier Jeremy Rockliff’s shock decision to cap taxpayers’ exposure at $375m.

Mr Rockliff, in his first pledge of the state election campaign, sought to address fears the cost of the stadium - part of a deal delivering Tasmania an AFL team - will blowout far beyond the $715m estimated.

“I recognise that this project is not everyone’s cup of tea and that some Tasmanians would prefer that this money was spent in different areas,” Mr Rockliff said.

“I also understand that there are concerns in the community that the final cost of the stadium could significantly increase, leaving Tasmanian taxpayers with a large, unbudgeted bill.

“Therefore … a re-elected majority Rockliff Liberal government will cap Tasmanian government capital expenditure on the Macquarie Point Stadium at the currently budgeted $375m – and not one red cent more.”

The AFL has refused to provide more $15m for the fully roofed, 23,000-seat stadium and it is unclear how much of $240m pledged by the federal government will be spent on the stadium, as opposed to wider precinct development.

Mr Rockliff denied he had effectively killed the project, which few independent observers believe can be built for less than $1 billion.

Instead, he said private investors would need to cover any budget overruns. However, opponents dismissed this idea as a fantasy, declaring the project dead.

“This is a political fix and it means the end of the stadium, because the agreement he (Rockliff) signed with the AFL transferred all the risk to the state,” said Roland Browne, spokesman for anti-stadium Our Place Hobart.

“He’s had the best part of a year to resolve funding for the stadium. That he attempts to do it on the first day of an election campaign is both embarrassing and ludicrous.

“There is no prospect of any private capital going into this unplanned, unfunded, and wrongly sited stadium.”

The AFL did not comment on whether it would increase its funding commitment but reiterated the stadium was a perquisite for the Tasmanian team.

“The team is conditional on a new 23,000 seat roofed stadium at Macquarie Point,” an AFL spokesman said.

Labor opposition leader Rebecca White hardened her party’s stance, saying the stadium had been costed at half the going rate for stadia builds and that the ALP did not support it.

“We don’t think a stadium is the right priority for our state,” Ms White said, reiterating her intention to renegotiate the AFL deal if elected premier on March 23.

“It’s evident to everybody that you can’t build a stadium at Macquarie Point for that price and in the timeline the Premier has said.”

In addition to the taxpayer and AFL funding, the $715m stadium funding package includes $85m to be raised from borrowings against land deals on the site.

Backers of the stadium argue it would provide a huge economic stimulus and create a world-class arena for the state’s long awaiting AFL team, as well as for other events.

Opponents argue the cost is likely to double and cannot be justified amid crises in health, housing and transport services, and rising state debt and deficits, particularly given Tasmania has two existing AFL stadia.

A competing alternative proposal has won over some detractors, but has not been embraced by the government.

Mr Rockliff’s handling of the stadium was a key factor in the decision of two Liberal MPs to quit the party last May, throwing the government into minority.

Resulting instability was the reason cited by Rockliff this week for calling the election 14 months before it was due.