Recently we noted from the Daily Telegraph reports that the Sydney Football (“Alliance”) Stadium rebuild will deliver zero net economic benefits for the state, according to analysis by hired gun KPMG:
The Daily Telegraph has obtained the executive summary of the KPMG business case dated January 2018, currently being prepared for the Berejiklian government.
The KMPG documents, labelled “sensitive — NSW cabinet” boost the state government’s case to demolish and rebuild the Moore Park stadium, finding that the alternative of a simple refurbishment would have “significant capital costs for marginal improvements” and deliver “significantly negative net economic outcomes”…
…The documents put the cost benefit ratio at “approximately break-even”, for demolishing and rebuilding the stadium, meaning for every dollar spent there will be a dollar in economic benefit for the state.
This analysis will provide a boost to the Berejiklian government, which has been under pressure of the scale of the spend planned for stadiums. The government has previously put the cost of its Allianz stadium redevelopment at $705 million…
The Sydney Football Stadium will deliver zero net benefits, even with KPMG’s highly optimistic assumptions. So why is this project going ahead? And why did the NSW Government sell-off the land titles registry to pay for it – a decision that will raise costs for NSW residents?
Now the circus on hold:
The Berejiklian government is in disarray over its stadiums strategy with plans to announce the knockdown and rebuild of Allianz Stadium tomorrow understood to have been put on hold, and a parliamentary inquiry into the whole stadiums affair expected to win upper house approval.
One senior source in the government said this morning that the stadiums issue was not on the agenda at tonight’s Expenditure Review Committee meeting and if Sports Minister Stuart Ayres tried to “walk it in” to Expenditure Review Committee tonight ahead of tomorrow’s cabinet, “we’re not going to cop that shit”.
I really don’t know how the NSW Libs expect to get re-elected as the Big Australia boilover deteriorates. But expensive distractions are not the answer.