Independent MP Johnston warns stadium contract may top $875m
On 12 Nov independent MP Kristie Johnston told ABC Radio Hobart the Macquarie Point stadium contract may exceed the $875m cap, with no parliamentary scrutiny.
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Independent Clark MP Kristie Johnston told ABC Radio Hobart on Thursday 12 November that the Macquarie Point stadium contract could be signed over the summer break for more than the $875 million the Tasmanian government promised, with no vote in Parliament.
Why it matters
Johnston said the $875 million cap was promised to Legislative Council members, including Elwick MP Bec Thomas, and that any amount above it would have to come back to Parliament for scrutiny. In the interview she said she fears the government will sign a contract with BESIX Watpac for more than that figure over the summer break. She said: “This is crunch time when it comes to accountability around the finances of the stadium.”
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Johnston said the government has described power, sewerage and stormwater as precinct costs rather than project costs, but that costs beyond the pure BESIX Watpac contract sum will still be needed.
BESIX Watpac was named preferred builder for the Hobart stadium on 16 October, as we reported earlier. Johnston wants the price in its final contract offer made public before a contract is signed.
The numbers
According to ABC’s account of the interview, the federal government has contributed $240 million and Johnston said it has ruled out adding more. She asked who would cover any amount above $875 million, including whether the AFL or Cricket Australia would contribute.
Johnston also said she suspects a public-private partnership could amount to a costly private financing arrangement, and that a TasCorp loan would breach the $875 million commitment. A $200 million investment at 10 per cent returns was a hypothetical put by presenter Leon Compton, not a reported figure.
What’s next
Johnston said the BESIX Watpac procurement closes on 13 November and that the Macquarie Point Development Corporation will take a submission to Cabinet on 30 November for a final project figure that includes costs beyond the contract. She said the Treasurer had admitted a contract would be signed over Christmas.
She plans a private member’s motion in Parliament on the following Wednesday asking the government to release BESIX Watpac’s final lump-sum contract offer from the second stage of the tender, and has called for Parliament to be extended so the figure can be debated. The Australian Developer will report any government response.
Quick answers
What is the latest on BESIX Watpac?
On 12 Nov independent MP Kristie Johnston told ABC Radio Hobart the Macquarie Point stadium contract may exceed the $875m cap, with no parliamentary scrutiny.
What are the key numbers in this story?
state cap: $875m; federal share: $240m.
Where does this information come from?
This story cites ABC Radio Hobart. Every source is linked on the page.
Sources
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Filed by the AusDev Tasmania Desk. How we report.