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28 May, 2025
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The cost, the design, the pushback: Hobart stadium legislation explained
@Source: abc.net.au
After weeks of talking about it, the Tasmanian government has released its stadium-enabling legislation for public consultation. The legislation takes a lot of reading, with a 140-page report delving into lots of detail. Here are some of the key takeaways. The cost has gone up significantly, but why? The last cost estimate for the stadium, released late last year, was $775 million. That has now jumped by a whopping $170 million. The top line: the stadium is now officially estimated to cost $945 million, getting close to the $1 billion price tag — which stadium opponents like the Greens predicted long ago. There are three main reasons for that. Firstly, the earlier estimates left out quite a few items — such as food and beverage facilities, advertising signage and audio-visual systems — that the government had previously hoped would be paid for by a private partner. But it has now decided that the Macquarie Point Development Corporation (MPDC) — the body in charge of transforming Macquarie Point into "a vibrant mixed-use precinct" — will do the build, then try to bring in the private operators. That additional cost comes to $75 million. There are also some new additions, mostly due to requests from cricket organisations. They include a chairman's lounge, a tier-one media box and additional food and beverage offerings. Not to mention another previously left-out calculation, the relocation and fit-out of the heritage-listed Goods Shed. These two things — the new additions and the Goods Shed relocation and fit-out — total $57 million. Finally, the cost blowouts or "design clarifications" that arose, including expanding the internal floor area, cost $38 million. As to what it all means for the government's "$375 million and not a red cent more promise"? Well, the government maintains that is the only capital it will put in, with the gap funded by borrowings. Those borrowings will be repaid through land sales and private partnerships. Will the cost estimate go up again? That is the million, or billion, dollar question. Some things still haven't been factored in, such as the multi-storey underground car park, now reduced to two stories from three. The cost of the northern access road, which the government argues is necessary, is yet to be factored in — although it will be included in this Thursday's budget. It is not out of the ordinary for a major infrastructure project to blow out in cost in Tasmania, but MPDC chief executive Anne Beach says the corporation is confident in the work they have done, and contingencies have been built into the cost estimate. "We're at 50 per cent detailed design. From here, we're looking at continuing to clarify and to make innovations and look for efficiencies," Ms Beach said. "It includes 7 per cent design contingency and 10 per cent construction contingency. That's over $100 million of this budget is contingency." Has the government addressed the issues raised by the Tasmanian Planning Commission? The government claims it has addressed the vast majority of the issues raised in the Tasmanian Planning Commission's draft report through its Enabling Legislation Report, released on Tuesday alongside the draft enabling legislation itself. While they may have been addressed, they have not necessarily been dealt with — which now means the project must satisfy 35 conditions for approval. The conditions include things such as an evacuation plan, flood mitigation and noise mitigation, as well as limiting the hours for events at the stadium: 8am to 8pm for day sporting matches, or training on the field2pm to 11:30pm for twilight and night sporting matchesNoon to 11:30pm for concertsNoon to 8pm for concert rehearsal or sound checks. Who decides if the conditions have been met? According to the legislation, the answer to this is the minister for industry, business and resources — currently Eric Abetz. He is in charge of ensuring the terms and conditions of each relevant permit are met. Other agencies have "endorsement and enforcement responsibilities". For example, the flood and emergency plan would fall within the remit of the police commissioner and the fire and emergency services coordinator. But largely, it's the secretary of the Department of State Growth, who reports to Mr Abetz. The minister has lots of power, which has already drawn the ire of crossbenchers including Greens Leader Rosalie Woodruff. "This legislation is draconian and bringing it to parliament is an utter farce," she said. So what other roles does the minister play? The bill gives the minister the power to amend any relevant planning scheme or order if it is inconsistent with the stadium. The minister will also be able to issue more permits if they are essential to the operation of the stadium — but they will need to consult with the regulators, and any additional permits will require approval from both houses of parliament. The minister can also amend the project scope or conditions attached to the permit — but only after they check with Hobart City Council and all regulators. Although if the changes are "minor", the minister will not need to run them past the council or regulators. A minor change would be one that: does not change the effect of a condition or restriction within the permit;is unlikely to have a negative impact on any person, and does not, or is unlikely to, cause serious or material environmental harm;does not change the use or development for which the permit was issued, other than a minor change in the description of the use or development. What's happening with cricket/the roof? To the annoyance of Cricket Tasmania and Cricket Australia, the project still contains a roof. But both the government and MPDC are determined to keep the roof and ensure cricket can be played in the stadium — particularly because it was a key part of the financial case for the stadium. Ms Beach confidently said that resolving cricket-related concerns — particularly the shadows cast by the roof beams — was well underway. "We've … looked at other venues and looked at how they've managed those and found that the dispersed nature of the shadow is quite minor when you experience it on the field," she said. She said the MPDC would be "looking at materials and at some of the way our structural members are positioned". Has the government appeased the Tasmanian Symphony Orchestra? In its submission to the Tasmanian Planning Commission, the TSO outlined its support for the stadium and AFL team, but it was worried about construction and event noise. To overcome this, the TSO suggested extra soundproofing for its Federation Concert Hall, restrictions on construction noise and vibration, temporary relocation to other venues for time-critical operations such as recording, and compensation if events are cancelled. The government has agreed to fund these measures at a cost of $4.45 million, although it is unclear if this was included in the total stadium cost. Can the legislation be appealed? The stadium is on a tight timeline, and, given how many other big projects get locked up in appeals, it makes sense the government would want to prevent this scenario. The legislation makes it clear: there will be no appeal rights. In fact, it goes as far as saying the bill "extinguishes all rights of appeal", including the right to appeal to a court or tribunal or seek a review under the Judicial Review Act 2000. What's next? The bill is out for public consultation for three weeks, then it will be tabled in parliament and up for debate. The government is hoping to pass it through the Legislative Council in July, which requires the support of three Upper House independents. If the legislation passes, the Project of State Significance process will end. And the stadium will be approved with plenty of conditions to meet. The government wants swift progress, with Mr Abetz hoping building can start later this year.
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