We noted previously how the NSW State Government has hit ‘peak stupid’ in deciding to spend $2.5 billion to demolish and rebuild the Olympic Stadium and the Sydney Football Stadium, both of which are underutilised.
These stadiums were assessed to deliver zero net economic benefits for the state, according to analysis by hired gun KPMG. Moreover, these stadiums are to be paid for by selling-off the lease to the state’s monopoly land titles registry – a move that will very likely see end-users being gouged by the new monopoly owners, with the NSW State Government also losing a reliable income stream.
Earlier this month, it was reported that the circus had been put on hold, and a parliamentary inquiry into the whole stadiums affair expected to win upper house approval.
Now, The Australian reports that Premier Gladys Berejiklian will “announce that Allianz Stadium will be knocked down and rebuilt but ANZ Stadium will undergo a “major renovation” – as opposed to the full $1.25 billion for a knockdown and rebuild” – a move that will save some $500 million and reduce the total cost of the projects down to $2 billion.
With widespread infrastructure bottlenecks across Sydney, and concerns over a ‘Big Australia’ and over-development at fever pitch, hosing $2 billion on dud projects like this still makes as much sense as punching yourself in the face.
