Premier Gladys Berejiklian ‘to compromise’ on stadiums

Gladys Berejiklian and her cabinet have come to a compromise on the Premier’s controversial position on sporting stadiums.

Premier Gladys Berejiklian will compromise on the proposed stadium upgrades.

NSW Premier Gladys Berejiklian says she is “pleased with her backflip’’ over the knockdown and rebuild of Allianz Stadium and renovation of ANZ Stadium announced today.

Ms Berejiklian has said that Allianz at Sydney’s Moore Park will be knocked down and rebuilt but ANZ Stadium at Homebush will undergo a “major renovation” - as opposed to the full $1.25 billion for a knockdown and rebuild.

It is understood the cost of the Allianz Stadium knockdown and rebuild is around $770 million.

There is also speculation there might be an announcement of a community fund for women’s sport.

.@GladysB: The government's position on Allianz stadium will give the stadium 50 years of life. The ANZ stadium will have life for another 40 years.

MORE: https://t.co/ZzvmwahECE #newsday pic.twitter.com/qPkqrCelrc

— Sky News Australia (@SkyNewsAust) March 29, 2018

Changing ANZ from a knockdown and rebuild to a renovation would still leave the government’s stadium spend at around $2 billion in total — down from $2.5 billion; once the construction of the new Parramatta Stadium is taken into account.

The government’s stadium spend would consist of $700-800 million for Allianz; probably $800 million for ANZ, $200 million the government spent buying back ANZ and $300 million on Parramatta Stadium rebuild

The benefit cost ratio for both stadia was found by the business cases to be less than 1, meaning the government will not be able to use funds from the sale of the Land and Property Information Service, as promised to pay for the stadia under its own rules.

The BCR for the rebuild of Allianz was at 0.94, while the BCR for the refurbishment of ANZ was 0.8.

Asset sale funds deposited in Restart NSW are only supposed to be sent if the BCR is more than 1.

It is understood cabinet did not see the business cases themselves, just the business case summaries that were publicly released.

Ms Berejiklian announced that she would continue with the knockdown and rebuild of Allianz Stadium to secure a 45,000 seat stadium at a cost of $729 million and a refurbishment of ANZ Stadium at a cost of $810 million.

But the refurbishment of ANZ Stadium comes at another cost. Just 46,000 seats at that stadium will be brought close to the action and the remaining 30,000 seats will remain in the nosebleed section.

Ms Berejiklian said she was “pleased” at her backflip and continued to repeat the lines in a heated press conference that she had “done her homework” and “listened to the community”.

This is why, she said, once business cases were done, that she had changed the knockdown and rebuild of ANZ Stadium to a refurbishment, saving $500 million after declaring in November in front of the sporting codes she would knock down and rebuild both.

It is the latest embarrassing backdown for the Premier, who has already flipped on council mergers and the introduction of a Fire and Emergency Services Levy.

Ms Berejiklian gave a speech in November to business leaders where she said she would stick to her decisions.

The Australian understands that in order to get the latest deal done and keep the NRL Grand Final in Sydney for the next 25 years, Sports Minister Stuart Ayres was cut out of the process and the Premier handled the negotiations personally.

In today’s press conference, Ms Berejiklian suggested she may consider abolishing the Sydney Cricket Ground Trust, which has lobbied hard for the rebuild of Allianz, but Mr Ayres then corrected her, saying the Trust would remain in place.

Ms Berejiklian declined to say how many times she had spoken to 2GB broadcaster Alan Jones about the issue. Mr Jones is on the Trust.

The Premier denied that her decision was robbing Western Sydney in favour of the east, saying she was building a Western Metro and Parramatta Light Rail.

“We are a Government that does its homework and listens to the public,” Ms Berejiklian said.

“That comprehensive homework means we will be able to deliver two outstanding stadiums for Sydney at the best possible value for taxpayers.”

The Premier did not rule out more backflips before the election next March.