The controversial new stadium planned for Hobart could generate up to $2.26 billion for the local economy over 10 years, according to a new report.
The announcement of the new $715 million stadium was conditional on the AFL granting a licence to Tasmania for a team. But the development has been hit by a wave of criticism that rocked the Liberal government with MPs quitting over the matter.
A new report authored by Russell Hanson, CEO of The Wilderness Society, says the stadium will deliver a significant economic boost based on PwC forecasts the venue would host 28 new events annually.
“These benefits make it quite clear that the new stadium is no ‘dud deal’ as has been claimed,” Hanson said in a statement.
“This huge economic benefit is further demonstrated on examination of the PwC analysis of the Hawthorn games in Launceston and applying the same methodology to the new stadium, the economic returns are substantially positive, ongoing and an opportunity this state can’t afford to lose.”
But an interim report into the development by a parliamentary committee says the analysis by PwC and others lacks enough detail to offer a real cost-benefit analysis.
“Many of the assumptions contained in the various reports provided to government, including the PwC and MI Global Partners reports, are not comprehensive or detailed to enable a meaningful cost-benefit analysis to be determined,” the report read.
“These reports have significant gaps – for example, the absence of assumptions related to opportunity costs and implausible event attraction details.”
Shadow Treasurer Shane Broad also said there was serious gaps in the economic case for building the stadium.
“While the premier has proudly endorsed a report on the stadium from the former CEO of the Wilderness Society, he has failed to address the report’s admission that the stadium will likely cost at least $1bn and will be unlikely to attract the predicted 44 major events every year,” Broad said.