Tasmanian Premier makes election pledge to limit state government’s contribution to new Hobart Stadium at $375 million

On the election trail, Tasmanian Premier Jeremy Rockliff has pledged to cap the state government’s input into the proposed Macquarie Point Stadium in Hobart at $375 million.

Commencing a re-election campaign triggered in part by controversy over the new venue, Premier Rockliff said any shortfall will have to be shouldered by the private sector.

The optimistic promise seems to be based on likely cost overruns being met by investors in private backers. This comes despite Tourism Research Australia’s latest annual Tourism Investment Monitor showing the Tasmania had the joint lowest (with Western Australia) investment of any state.

Currently, the budget for the development currently stands at $715 million, with the Federal Government committing $240 million.

Speaking to Hobart newspaper The Mercury, Premier Rockliff stated “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.

“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, un-budgeted bill.

“Therefore, I have taken the decision that a re-elected majority Rockliff Liberal Government will cap Tasmanian Government capital expenditure on the Macquarie Point Stadium at the currently budgeted $375 million - and not one red cent more.

“Along with the Macquarie Point Development Corporation and Stadiums Tasmania, we will open private-sector investment options for the Macquarie Point Precinct to ensure the Government’s contribution to the project is capped.”

The Tasmanian Government's contract with the AFL for the stadium states that it is "solely responsible" for cost overruns.

Tasmania's Labor opposition is pledging that it will reopen negotiations with the AFL.

Another aspect of the AFL deal is that the stadium must be ready by the 2028 season, or the Tasmanian club will start facing financial penalties.

AFL spokesperson Jay Allen said the club was proceeding as planned, telling the ABC "the AFL's position is that a clear requirement of the 19th licence is that the team is conditional on a new 23,000-seat roofed stadium at Macquarie Point."

In addition to the Tasmanian Government proposal for the new venue, a private sector consortium has presented an unsolicited bid for a development that would combine residential real estate with the new stadium.

In addition to the Tasmanian Government proposal for the new venue, a private sector consortium has presented an unsolicited bid for a development that would combine residential real estate with the new stadium.

Image: Concept for the new Hobart Stadium. Credit: AFL Media.