NSW Government in chaos over stadiums

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.

Comments

    • haroldusMEMBER

      That’s why I’m disappointed no one listens to my call for Tip Top and Burgen to have naming rights on the new stadia.

  1. St JacquesMEMBER

    For the exploding armies of beggars on the streets of our two “global” cities, it’s the hunger games.

  2. the problem is that dear Gladys couldn’t negotiate a kebab with hummus, tabouli and no onion – look what the Spanish did to her with the worlds most overpriced tram

  3. Docklands Stadium in Vic opened in 2000. The Olympics were held in 2000.

    So why does the Olympic Stadium need to be rebuilt?

    Utter insanity!

    • Because docklands was purpose built for AFL, Homebush built for Olympics and specifically athletics. It’s a horrible stadium for all footy codes

      • It was built for the wings to encroach into playing surface to configure to AFL or rugby. However you are a long way from the action. In any respect if this is the most important thing to do in Sydney it must be in a really good place ….. hmmm.

    • Ronin8317MEMBER

      Because Foxtel dosen’t like all those empty seats to show up on TV broadcast, so they need to make the stadium smaller.

    • Because Docklands is in Melbourne. Anything Melbourne has Sydney has to have better whatever the cost. Its interstate competition, not international. So massive subsidies and 2 of everything in Australia. Or imagine the NRL grand final held in Brisbane !

    • It’s known as the ‘broken window fallacy’ i.e any activity is net positive for the economy (this is according to John Maynard Keynes, whose abysmal economic theories are so beloved today by virtually every drone in the economics establishment).

      Check it out — it’s so looney it could only be embraced by an economist.

  4. NSW could invade Qld or Victoria and plunder their wealth to build the stadiums. Gladys has to use the playbook from the emperor Titus.

      • Didn’t think it needed saying but, yes. A parade of chained QLD slaves through Sydney would make up for Origin heartbreak. Go on, Gladys. The next election would be in the bag.

  5. Ross Gittins speaking at 6pm tonight. Newcastle Institute forum. Souths Leagues Club Merewether. Topics: Rent-seeking, the ‘game of mates’, and the stuff-ups of economic reform

  6. TailorTrashMEMBER

    “we’re not going to cop that shit”….. …..my goodness someone in the Silly NSW government can express themselves just like the punters …….that passes the pub test …and that’s for sure ….

  7. The same reason as every other development. 20,000 mirvac appartments are going up around the smaller stadium