Melbourne scores international ice hockey rights despite ballooning debt

As Victoria’s state debt balloons, major events and sporting spectacles are steadfast and infrastructure spending continues to grow.

An NHL match between the Los Angeles Kings and the Arizona Coyotes. Picture: Getty Images

The Andrews Government is banking on international ice-hockey blockbuster games to pay an economic dividend in the midst of a looming budget crisis.

News Melbourne will become the first city in the southern hemisphere to host the National Hockey League – in addition to the Grand Prix and the Australian Open – comes as Premier Daniel Andrews lobbies the federal government for extra funding to help bail the state out of its massive debt which is projected to reach $165.4bn by 2025-26, more than any other state in the country.

Asked if he could say how much it will cost to put on the games – which will see the Los Angeles Kings and Arizona Coyotes travel to Australia to play at Rod Laver arena which will be transformed into a temporary ice rink – Tourism, Sport and Major Events Minister Steve Dimopoulos said “no”.

Former NHL players Darcy Hordichuk and Dustin Brown pose with Minister for Victorian Tourism, Sport and Major Events Steve Dimopoulos. Picture: Getty Images

“Whatever we spend, and the good advice we get from the leadership of Visit Victoria, it has a far bigger impact on the economy,” he said.

“This (major events) calendar underpins … $2.5bn of economic activity. Thousands of jobs from hotel rooms to people pulling beers and to every other retail shopping bar across Melbourne.

“This investment by the taxpayer in the NHL … will be paying dividends.”

Key infrastructure project costs in the state have blown out, including the West Gate Tunnel project which went from $6.7bn to $10.6bn, the Metro rail tunnel which taxpayers have funded half of the $2.74bn blowout on the $12.6bn project and the Suburban Rail Loop which could cost as much as $200bn.

Plus, the state will have to cough up cash for the 2026 Commonwealth Games which is expected to cost $2.26bn. Mr Dimopoulos said funding from the commonwealth for the games was a matter for the deputy premier Jacinta Allan.

There are also reports thousands of jobs in the public sector could be lost, after last month Victorian Department of Treasury and Finance secretary David Martine told government department heads to cut their budgets by 10 per cent.

Mr Dimopoulos could not guarantee none of the state’s major events could be cut in the budget, but he insisted the Andrews government recognised their economic value.

“I'm not the deliverer of the budget, but I think major events caliber (is) recognised, not just by government (but) globally as one that’s important economically,” he said.

Ahead of state treasurer Tim Pallas’s budget due on May 23, the premier this week declared “now is the time” to start to repay Victoria’s debt and said he will seek support from the federal government to pay it down.

“Victoria isn’t seeking any more than its fair share, which we were denied by the former ­Coalition government for far too long,” he said on Tuesday.

Mr Dimopoulos said on Wednesday the upcoming budget will be handed down in a “tight fiscal environment” but insisted all of the Labor government’s election promises will be delivered.

“We have always lobbied for our fair share. We were missing out on infrastructure spend and on recurrent spend in hospitals,” he said.

“It is not fair that the second biggest state, soon to be the biggest city in the country by the end of this decade, doesn‘t get this fair share in terms of federal revenue.”