There was no evidence to back the key assumptions underpinning the business case backing the proposed $715m Macquarie Point stadium, a parliamentary committee has found. LIVE UPDATES
Labor has moved a motion to refer Minister for Energy and Renewables Guy Barnett to Parliament's Privileges and Conduct Committee.
Opposition leader Rebecca White said Mr Barnett has failed to provide the parliament with costings for the Marinus Link, North West Transmission and Battery of the Nation projects as demanded by the parliament.
"The Standing Orders are very clear that when the House orders the executive, and in this case, the minister to comply with the will of the house the Minister needs to do that and in this minister's failure to do that, there has to be a consequence," she said.
"Here is an opportunity for the parliament to finally hold this minister to account, to refer him to the Privileges and Conduct Committee and for there to be appropriate consequences for his failure to comply with an order."
Mr Barnett described the motion as a "Labor stunt".
He said he had made it clear he was unable to comply with the order because of advice from industry CEOs that it would breach the commercial confidentiality of ongoing negotiations.
"This is just a political stunt," he said.
"It's very clear that there was a procurement process, the business community knows that you can't release confidential information during the procurement process."
Tasmania's economy is the only state in the nation to have gone backwards in the latest national accounts figures, Labor says.
In state parliament on Thursday, Labor leader Rebecca White accused the Liberal minority government of running the economy as well as it was running the hospital system.
Premier Jeremy Rockliff said his government stood on its record.
"I'm very proud of the economic achievements that this government has made over the course of the last nine years – in stark contrast to those opposite when they were last in power," he said.
National accounts figures released by the Australian Bureau of Statistics on Wednesday showed state final demand contracted by 1.4 per cent in the June quarter.
The $715m Macquarie Point Stadium proposal has been dogged by a lack of consultation, unsupported financial modelling, questionable attendance figures and implausible event attraction details, a parliamentary inquiry has found.
The Parliamentary Standing Committee of Public Accounts Inquiry into the Tasmanian Government’s process into the proposed Arts, Entertainment and Sports Precinct in Hobart delivered its interim report on Wednesday.
The report said the government failed to consult with key stakeholders until after the site was chosen and offered to build a roofed stadium when that was not a request made by the AFL.
The committee held seven days of public hearings and received 926 submissions.
It found that there was no evidence about the factual basis of assumptions provided by government to consultants to build the business case modelling, in particular the number and nature of expected events and attendance at events of the proposed stadium.
The assumptions in both the PwC and MI Global Partners Reports included events that
arguably could not be held in a fixed-roof stadium, the report said,
“To date, the Committee has made a number of findings including findings related to the lack of consultation, especially with key, and deeply invested stakeholders related to the Macquarie Point site,” the majority report said.
“These include the Returned and Services League of Tasmania, Vietnam Veterans Association, TasWater and Hobart City Council.
“Many of the assumptions contained in the various reports provided to government, including the PricewaterhouseCoopers and MI Global Partners Reports, are not comprehensive or detailed to enable a meaningful cost-benefit analysis to be determined.
“These reports have significant gaps, for example, the absence of assumptions related to opportunity costs and implausible event attraction details.”
Committee chair Ruth Forrest said the committee had experienced trouble getting access to key documents.
“It’s frustrating to be told that the parliament can’t, according to some, access documents that the committee is requesting,” she said.
“Commercially sensitive documents can be received by the committee in confidence, in camera, the committee knows how important it is to keep those things confidential.”
She said it was difficult for the committee to form a true picture of the project without understanding exactly how the cost-benefit analyses were built.
“When you can’t actually provide the assumptions that feed into that, it was a concern that we perhaps weren’t looking at a true picture and that could have financial implications for the state,” she said.
Labor leader Rebecca White said the lack of consultation on the project was no surprise.
“This government is making decisions on behalf of Tasmanians without being transparent about it,” she said.
“They have got a trademark secrecy problem. Most Tasmanians have come to learn that about this Rockliff government now.”
Greens MPs Vica Bayley and Rosalie Woodruff. Photo: David Killick
Greens MP Vica Bayley said Tasmanians were being “sold a pup”.
“It’s no surprise that the government is in a world of pain with really important stakeholders, such as the RSL if this is the approach they take.
“They make a decision and then they start building their PR and consultation strategy around that.”
The committee will now look into the cost estimates for the project.
Minister for Stadia and Events Nic Street says he is unaware of suggestions there is water directly underneath the site of the proposed Macquarie Point stadium.
Labor leader Rebecca White asked the government whether it planned to move th stadium during Question Time in state parliament today.
"You will hit water at the city end of your proposed site after just 2.5 metres," she said.
"If so, are you going to move the site or are you going to try for an engineering fix, which will no doubt blow out the cost even more than the $1 billion your government has endorsed in today's paper?"
Mr Street withdrew a request to rowdy opposition members to "shut up" before saying he was unaware of the claim.
"In relation to the specifics of the question I haven't received that advice, I don't believe," he said.
"If I've got any further information that's in my office that I haven't yet seen I'm more than happy to bring that back to the chamber but I have not been provided that advice personally."
A report by retired businessman Russell Hanson, the former finance director of the now defunct FitzGerald’s Department Stores, claims the economic benefits of the stadium have been understated and the stadium would deliver a positive benefit for the state.
It contradicts an MI Global Partners study produced for the government that found the stadium would deliver a $600m economic benefit at a cost of more than $1bln, assuming a $715m build cost.
Greens MP Vica Bayley said Mr Hanson's report was "wildly speculative".
"The report uses a methodology from the discredited Price Waterhouse Coopers that would not be accepted by the Commonwealth for the allocation of grant funding," he told Parliament.
"This report is wildly different from your government's cost-benefit analysis that was used to secure grant funding."
Minister for Transport and Infrastructure Michael Ferguson said the Hanson report was inconvenient reading for opponents of the stadium.
"This report has not been commissioned by the government," he said.
"It's an independent person's own views and their own analysis of the stadium and I welcome that.
"I think that report stands on its own. It was supported by Saul Eslake and if you would care to attack him as well, knock yourself out.
"We welcome the involvement of Mr Hansen. We stand by our own report and we welcome others' opinions."
Energy Minister 'absolutely delighted' by Marinus cable contract
Marinus Link has secured a manufacturer for the proposed second undersea cable across Bass Strait.
Italian company Prysmian Power has struck a capacity reservation agreement with Marinus to build a 750mw cable.
Energy Minister Guy Barnett said the agreement was "a massive win for Tasmania".
"The market for these products is white hot across the world and securing this cable from a tier one supplier is absolutely critical for the future of Marinus Link," Mr Barnett said.
"We are absolutely delighted."
Libs defend record on health as hospitals struggle
The stress on the state's major hospitals has dominated the start of question time in the House of Assembly this morning.
Opposition leader Rebecca White accused the Liberals of driving the health system "to the brink of collapse" over their 10 years in office.
Premier Jeremy Rockliff said the Liberals had invested record amounts in the health system, opening wards, renovating hospitals, modernising IT systems and hiring more staff.
Ï'm more than happy to put our record of investment in health against yours…you shut wards, you put beds in storage, we've opened wards, in fact we have opened 237 additional beds I''m advised since July 2018," Mr Rockliff responded to Ms White.
Mr Rockliff referred to comments by Prime Minister Anthony Albanese in Hobart last week when he said hospitals across the country were still under post-pandemic strain.
Mr Rockliff said Ms White's comments about the health system were at odds with the PM's plea for all sides of politics to look for solutions on health.
"Your politics does not help a single person within our health system, your politics is no solution, what is the solution is the Liberal Government getting on with the job opening more wards and beds," Mr Rockliff said.
Health Minister Guy Barnett said he was offended by suggestions the state government was meddling in the Royal Hobart Hospital, asking management not to call a Code Yellow, which means an internal disaster, in response to recent high pressure.
"Why are you politically interfering in the operations of Tasmanian hospitals, keeping it at a downgraded response level that is putting lives…at risk?" asked Greens leader Rosalie Woodruff.
Mr Barnett said Dr Woodruff was "completely and utterly wrong".
Child Safety Officers in Hobart and Launceston will walk off the job on Wednesday over staff shortages they say are leaving that leave at-risk children without support.
Health and Community Services union delegates met with Premier Jeremy Rockliff in September last year seeking an emergency workforce package to address their staffing crisis.
They say nothing has been done and workers are continuing to resign in frustration.
“At the very time Tasmanians are hearing from the Commission of Inquiry about how we have failed vulnerable children in the past, it is happening again,” HACSU assistant state secretary Lucas Digney said.
“Child Safety workers need pay and conditions that see people wanting to stay and work in this vital service area. But what do we see? Piecemeal offerings that will do nothing to address the ongoing crisis.”
“Critical services are currently in crisis and these vital workers are struggling with crippling demand,” said Lucas Digney. “It’s gotten worse, not better, and government or departmental representatives have given us nothing as to how the immediate service delivery crisis across the state will be addressed.”
Stop work events will take place in Hobart and Launceston at lunchtime on Wednesday.
Mr Digney said Tasmania's child protection system was teetering on the brink of collapse as staff departures continued unabated.
“Child Safety and the Advice and Referral Line are critically under-resourced and children reported at risk of neglect or abuse are not getting the support they need and deserve.
"We have hundreds of kids in care who do not have an allocated worker. It’s simply not good enough.”
Tasmanians urged to stay away from RHH, LGH amid 'significant demand'
Ambulances at the Royal Hobart Hospital. Picture: Chris Kidd
The Health Department is asking Tasmanians not to attend the state’s major hospitals unless their case is a genuine emergency.
In a statement issued at 7pm on Tuesday night, Department of Health Secretary Kathrine Morgan-Wicks said the Royal Hobart Hospital, Launceston General Hospital and Ambulance Tasmania experiencing significant demand for services, with high rates of unplanned staff absence, as COVID-19, influenza and other seasonal illnesses continued to circulate in the community.
“There are also a high number of patients with complex needs awaiting discharge, including a higher than normal number awaiting placement for aged care facilities and patients awaiting National Disability Insurance Scheme assessments, approvals and supports,” Ms Morgan-Wicks said.
“The hospitals are closely managing elective surgery activity to maintain access for emergency demand. This includes working with private hospitals to access contracted bed capacity and elective surgery support.”
Ms Morgan-Wicks said non-emergency, urgent cases could attend the new Medicare Urgent Care Clinic at Your Hobart Doctor at 71 Bathurst St, Hobart, which is open from 4pm-10pm seven days a week, and the Medicare UCC at Launceston Medical Centre at 247 Wellington St, Launceston, which is open from 2pm-8pm seven days a week.
The Greens have appealed to the Premier to urgently close the troubled Ashley Youth Detention Centre.
In state parliament this morning, Greens leader Rosalie Woodruff said the closure was overdue – and had again been raised by the Commission of Inquiry in its closing addresses last week.
Former Premier Peter Gutwein announced in September 2021 that Ashely would close by the end of 2024.
But Dr Woodruff said progress was not being made quickly enough
"Ashley Youth Detention Center continues to be a source of trauma and devastation for the young people sent there," she said.
"In July, the Commissioner for Children and Young People revealed that children incarcerated at Ashley have been subjected to restrictive practices every day since June last year.
"Two months later, this appalling streak continues unbroken.
"Ashley Detention Center offends against the UN Convention on the Rights of the Child every day.
"In her final remarks, the Commission of Inquiry's president called for Ashley to close as a matter of urgency.
"Will you step in and take control and find an interim safe space with the urgency these young, vulnerable people deserve?"
Mr Rockliff said the government was working to reform the entire youth justice system, of which the Ashely closure was a part.
"The Tasmanian Government is committed to developing a youth justice system that achieves better outcomes for young people and families and keeps our community safe," he said.
"We understand the case for closing the Ashley Youth Detention Center and I was with you present in the room when Commissioner [Marcia] Neave made very sobering comments not only about the report but also about the detention centre and I heed the words of Commissioner Neave, as you have quoted.
"We do want to progress our plan to close Ashley and at the same time, transition to new contemporary therapeutic facilities and models of care and this will help ensure that we have fewer young people in detention and more young people catered for and supported through a range of facilities and services and wraparound services and supports that they need.
"Our model is comprised of one detention and remand centre located in the south, two assisted bail facilities, one on the north or northwest and one on the south and two support residential facilities, one on the north or northwest and one in the south.
"The 2022/23 and 2023/24 budget provided some $50m of investment to support the delivery of new facilities under our youth justice reform program."
Labor accuses government of contempt over Marinus Link costings
Labor has accused the government of holding the parliament in contempt over its reluctance to release costings for the Marinus Link project.
Multiple attempts to extract updated cost estimates in the last sitting week were stonewalled by the government with the backing of state-owned energy enterprises.
But Labor leader Rebecca White said repeated claims the project would be irreparably damaged by the cost being revealed were overblown – because the figure was revealed in a government media release.
"Your energy minister is clearly in contempt of Parliament," she told Premier Jeremy Rockliff.
"He failed to comply with the order of the house and justified his outrageous actions by claiming that adhering to the audit would require him to breach contracts, to breach confidentiality agreements, to breach privacy rules and to breach non-disclosure agreements.
"Your deputy even went so far as to claim that legally your government was not able to comply with the order.
"None of this was true, as Sunday's press release showed, they have both clearly misled the parliament and of course, the original order of the house still has not been complied with."
Mr Rockliff said he stood by Minster for Energy and Rewables Guy Barnett.
"We have secured a great deal when it comes to Marinus Link, and we drew a line in the sand, and we had to we had to, but the result of drawing that line in the sand is that through consultation and collaboration with the federal government, the line in the sand and the deal … is very firmly on our side of the line," he said.
With controversy surrounding the Devonport berth for the TT-Line ferries, at least one piece of port infrastructure has been delivered on time and within budget.
