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Epoch Times
28-05-2025
- Business
- Epoch Times
Cost of Tasmania's Stadium Project Blows Out to Nearly $1 Billion
A multi-purpose stadium project with 23,000 seats in Tasmania has been subject to a cost overrun of $230 million (US$149 million). On May 27, the Tasmanian government released details of a bill to enable the construction of the Macquarie Point Urban Renewal Project—a major redevelopment initiative aimed at transforming a disused waterfront site in Hobart into a vibrant cultural, scientific, residential, commercial, and tourism precinct. It now seeks input from the public to facilitate the project's development. As part of the consultation, the state government announced that the cost of the Macquarie Point Stadium, a core component of the proposed precinct, had been revised to $945 million, up from the $715 million forecast in 2022. According to the Tasmanian government, the cost increase was necessary to ensure that the stadium could better meet the requirements for 'a wide range of planned uses,' including cricket. 'It also accounts for detailed items such as audio-visual, communications, kitchen, and food and beverage fit-outs,' it said. Related Stories 2/25/2025 12/11/2024 The Australian Football League (AFL) has made the construction of a new stadium a non-negotiable condition for granting Tasmania a licence for its own AFL team. Under the deal between Tasmania and the AFL, the state government will face a $4.5 million penalty if the stadium is not 50 percent built by October 2027 and another $4.5 million if it is not ready to host football matches by 2028. With the opening of the public consultation, Tasmanian Business and Industry Minister Eric Abetz said it was time for the state to begin building the stadium. 'We have been remediating and preparing Macquarie Point for development for over twelve years, and we know this land is the best available CBD site for a stadium,' 'It is time to draw a line in the sand and provide certainty for our own AFL Team and the enabling infrastructure that is critical to make our team a success. 'The impact the multi-purpose stadium will have on our economy, jobs, and investment is simply an opportunity we can't miss.' The consultation will close on June 16, 2025. Funding for the Project The Tasmanian government has committed $375 million to the stadium, with the federal government expected to spend $240 million. AFL has agreed to contribute $15 million. It is understood that the state will fund the remaining $300 million via borrowings. As the project receives the support of both the Liberal government and the Labor opposition, the bill is expected to pass Tasmania's lower house in the coming months. However, to pass the upper house hurdle, the state government will need the support of crossbenchers, some of whom have expressed disapproval of the project. The Greens' Response Following the release of the new costing, the Tasmanian Greens Party criticised the Liberal government for the cost blowout. '[Premier] Jeremy Rockliff said that he personally would make sure the stadium would be delivered on time and on budget. He mocked opponents and the Greens when we said the stadium's starting price would be a billion dollars and that it would be all up from there,' 'But now he's confirmed we were right on the money, announcing a revised starting figure of $945 million. 'Yet the premier still won't admit that he's broken his promises to Tasmanians not to spend more than $375 million of their money on a stadium.' The Greens further warned that more cost blowouts would come as other projects, such as the Cradle Cableway, had reported a surge in construction costs.
The Advertiser
28-05-2025
- Business
- The Advertiser
Further drama for troubled new Bass Strait ferries
Two new Bass Strait ferries plagued by delivery delays and cost blowouts have hit further trouble, with technical issues identified on both ships. The Spirit of Tasmania vessels aren't expected to be in service until late 2026, years behind schedule because of a failure to build a berth for the ships. Spirit IV has been sitting in Scotland since December, while Spirit V is being put through sea trials by its Finnish-based shipbuilder. Technical issues on both ships in relation to their liquefied natural gas systems have been identified, the Tasmanian government said on Wednesday. The issue was discovered as part of Spirit V sea trials, Transport Minister Eric Abetz said. Spirit IV was due to leave Scotland for Hobart on Monday, to undergo its final fit-out, but it will now remain there indefinitely for further assessment and repairs. "The government is awaiting further details in relation to a new expected departure date (from Scotland)," Mr Abetz said. "It is understood that this work will take some time. The ship will be relocated to Hobart as soon as possible for final fit-out." Repair costs will be covered under warranty with shipbuilder RMC, Mr Abetz said. Delivery of the two larger vessels, which cost more than $900 million, has been dubbed one of the greatest infrastructure stuff-ups in Australia's history. The ships were due to be delivered to Tasmania in late 2024, but required berth upgrades at Devonport aren't expected to be finished until late 2026. Industry and tourism bodies keenly awaiting greater capacity of the new ships have lashed the government for their handling of the project. The saga forced Tasmania's deputy premier Michael Ferguson to relinquish his portfolios and prompted resignations at government businesses in charge of the ships. Projected costs for the Devonport berth in May rose from $375 million to $493 million, well beyond the initial $90 million estimate. Two new Bass Strait ferries plagued by delivery delays and cost blowouts have hit further trouble, with technical issues identified on both ships. The Spirit of Tasmania vessels aren't expected to be in service until late 2026, years behind schedule because of a failure to build a berth for the ships. Spirit IV has been sitting in Scotland since December, while Spirit V is being put through sea trials by its Finnish-based shipbuilder. Technical issues on both ships in relation to their liquefied natural gas systems have been identified, the Tasmanian government said on Wednesday. The issue was discovered as part of Spirit V sea trials, Transport Minister Eric Abetz said. Spirit IV was due to leave Scotland for Hobart on Monday, to undergo its final fit-out, but it will now remain there indefinitely for further assessment and repairs. "The government is awaiting further details in relation to a new expected departure date (from Scotland)," Mr Abetz said. "It is understood that this work will take some time. The ship will be relocated to Hobart as soon as possible for final fit-out." Repair costs will be covered under warranty with shipbuilder RMC, Mr Abetz said. Delivery of the two larger vessels, which cost more than $900 million, has been dubbed one of the greatest infrastructure stuff-ups in Australia's history. The ships were due to be delivered to Tasmania in late 2024, but required berth upgrades at Devonport aren't expected to be finished until late 2026. Industry and tourism bodies keenly awaiting greater capacity of the new ships have lashed the government for their handling of the project. The saga forced Tasmania's deputy premier Michael Ferguson to relinquish his portfolios and prompted resignations at government businesses in charge of the ships. Projected costs for the Devonport berth in May rose from $375 million to $493 million, well beyond the initial $90 million estimate. Two new Bass Strait ferries plagued by delivery delays and cost blowouts have hit further trouble, with technical issues identified on both ships. The Spirit of Tasmania vessels aren't expected to be in service until late 2026, years behind schedule because of a failure to build a berth for the ships. Spirit IV has been sitting in Scotland since December, while Spirit V is being put through sea trials by its Finnish-based shipbuilder. Technical issues on both ships in relation to their liquefied natural gas systems have been identified, the Tasmanian government said on Wednesday. The issue was discovered as part of Spirit V sea trials, Transport Minister Eric Abetz said. Spirit IV was due to leave Scotland for Hobart on Monday, to undergo its final fit-out, but it will now remain there indefinitely for further assessment and repairs. "The government is awaiting further details in relation to a new expected departure date (from Scotland)," Mr Abetz said. "It is understood that this work will take some time. The ship will be relocated to Hobart as soon as possible for final fit-out." Repair costs will be covered under warranty with shipbuilder RMC, Mr Abetz said. Delivery of the two larger vessels, which cost more than $900 million, has been dubbed one of the greatest infrastructure stuff-ups in Australia's history. The ships were due to be delivered to Tasmania in late 2024, but required berth upgrades at Devonport aren't expected to be finished until late 2026. Industry and tourism bodies keenly awaiting greater capacity of the new ships have lashed the government for their handling of the project. The saga forced Tasmania's deputy premier Michael Ferguson to relinquish his portfolios and prompted resignations at government businesses in charge of the ships. Projected costs for the Devonport berth in May rose from $375 million to $493 million, well beyond the initial $90 million estimate. Two new Bass Strait ferries plagued by delivery delays and cost blowouts have hit further trouble, with technical issues identified on both ships. The Spirit of Tasmania vessels aren't expected to be in service until late 2026, years behind schedule because of a failure to build a berth for the ships. Spirit IV has been sitting in Scotland since December, while Spirit V is being put through sea trials by its Finnish-based shipbuilder. Technical issues on both ships in relation to their liquefied natural gas systems have been identified, the Tasmanian government said on Wednesday. The issue was discovered as part of Spirit V sea trials, Transport Minister Eric Abetz said. Spirit IV was due to leave Scotland for Hobart on Monday, to undergo its final fit-out, but it will now remain there indefinitely for further assessment and repairs. "The government is awaiting further details in relation to a new expected departure date (from Scotland)," Mr Abetz said. "It is understood that this work will take some time. The ship will be relocated to Hobart as soon as possible for final fit-out." Repair costs will be covered under warranty with shipbuilder RMC, Mr Abetz said. Delivery of the two larger vessels, which cost more than $900 million, has been dubbed one of the greatest infrastructure stuff-ups in Australia's history. The ships were due to be delivered to Tasmania in late 2024, but required berth upgrades at Devonport aren't expected to be finished until late 2026. Industry and tourism bodies keenly awaiting greater capacity of the new ships have lashed the government for their handling of the project. The saga forced Tasmania's deputy premier Michael Ferguson to relinquish his portfolios and prompted resignations at government businesses in charge of the ships. Projected costs for the Devonport berth in May rose from $375 million to $493 million, well beyond the initial $90 million estimate.
Perth Now
28-05-2025
- Business
- Perth Now
Further drama for troubled new Bass Strait ferries
Two new Bass Strait ferries plagued by delivery delays and cost blowouts have hit further trouble, with technical issues identified on both ships. The Spirit of Tasmania vessels aren't expected to be in service until late 2026, years behind schedule because of a failure to build a berth for the ships. Spirit IV has been sitting in Scotland since December, while Spirit V is being put through sea trials by its Finnish-based shipbuilder. Technical issues on both ships in relation to their liquefied natural gas systems have been identified, the Tasmanian government said on Wednesday. The issue was discovered as part of Spirit V sea trials, Transport Minister Eric Abetz said. Spirit IV was due to leave Scotland for Hobart on Monday, to undergo its final fit-out, but it will now remain there indefinitely for further assessment and repairs. "The government is awaiting further details in relation to a new expected departure date (from Scotland)," Mr Abetz said. "It is understood that this work will take some time. The ship will be relocated to Hobart as soon as possible for final fit-out." Repair costs will be covered under warranty with shipbuilder RMC, Mr Abetz said. Delivery of the two larger vessels, which cost more than $900 million, has been dubbed one of the greatest infrastructure stuff-ups in Australia's history. The ships were due to be delivered to Tasmania in late 2024, but required berth upgrades at Devonport aren't expected to be finished until late 2026. Industry and tourism bodies keenly awaiting greater capacity of the new ships have lashed the government for their handling of the project. The saga forced Tasmania's deputy premier Michael Ferguson to relinquish his portfolios and prompted resignations at government businesses in charge of the ships. Projected costs for the Devonport berth in May rose from $375 million to $493 million, well beyond the initial $90 million estimate.
ABC News
28-05-2025
- Business
- ABC News
New problems with Spirit of Tasmania ferries delay arrival again
Both of Tasmania's brand new Bass Strait ferries have "technical issues" and their departure for Australia will be delayed, the government has said. The new Spirit of Tasmania ferries, Spirit IV and V, have been built in Finland by shipbuilder Rauma Marine Construction and have been undergoing testing and preparations to travel to Tasmania. Spirit IV has been docked in Scotland in recent months and was due to leave for Tasmania on Monday, May 26, but TT-Line said in a statement on Monday that inclement weather had prevented its departure. In a statement this morning, Minister for Transport Eric Abetz said TT-Line had advised the government an issue with the liquefied natural gas systems on board both ships had been identified. "RMC has advised TT-Line that the issue needs further assessment and rectification, and as a result Spirit IV will not depart for Australia until the work is completed," Mr Abetz said. "The government is awaiting further details in relation to a new expected departure date, but it is understood that this work will take some time." He said that any necessary repair costs will be covered under warranty with RMC, and that TT-Line had representatives on the ground in Finland and was engaging with the company. "The ship will be relocated to Hobart as soon as possible for final fit-out," Mr Abetz said.
ABC News
26-05-2025
- Business
- ABC News
Tasmanian government releases Macquarie Point stadium legislation, as cost rises by $170 million
Draft legislation that would enable a stadium to be built at Macquarie Point in Hobart, has been released for public consultation. The Tasmanian government has also updated the cost estimate for the stadium, saying it was now estimated to be $945 million, up from its previous figure of $775 million. The stadium proposal is being assessed by the Tasmanian Planning Commission as a project of state significance, but the government wants to pull out of that process and instead give the parliament the only say on whether the stadium will be built. A roofed stadium at Macquarie Point is a condition of Tasmania's AFL licence. Business, Industry and Resources Minister Eric Abetz said the government was confident the legislation "provides the necessary details for the parliament to provide their support". "The government has reviewed and acknowledged the concerns and challenges raised within the draft Integrated Assessment Report by the Tasmanian Planning Commission," Minister Abetz said. "This draft bill and subsequent planning conditions addresses these points and demonstrate the efforts by the government to ensure the legislation is comprehensive. Mr Abetz said the permit included conditions requiring "subject and site-specific expert management plans to be finalised and submitted to the relevant regulator for approval before construction or operations" can start. He said that was standard practice for commercial development approval. The government has also agreed to a request from the Tasmanian Symphony Orchestra (TSO) to soundproof the Federation Concert Hall. The TSO asked for $4.45 million. Mr Abetz said the total cost of the stadium was now estimated to be $945 million. He said the figure incorporated "improvements that will enhance the stadium user experience to better cater for a wide range of planned uses, including helping facilitate cricket at the venue".
