Now it's $535m Oval upgrade
http://www.adelaidenow.com.au/now-its-5 ... 5871073484
THE Adelaide Oval redevelopment has not become a bottomless pit, despite revelations it will cost at least another $85 million, Treasurer Kevin Foley says.
Mr Foley said during a fiery interview on 891 ABC Adelaide this morning that he was first formally advised of the cost blowout in a minute from Treasury a week ago.
"We want to deliver to the people of SA an outstanding stadium," Mr Foley said. "Whatever the price ultimately is, there is a limit to what the Government will put into it."
The Government has been forced to put an extra $85 million into the redevelopment which was a key election issue with the Liberals promising a $800 million covered stadium on the railyards site.
Mr Foley said the Government had made the original commitment of $450 million based on the advice of the SANFL, SACA and the AFL - three very responsible bodies.
"That was there best estimate at the time and we considered it to be a correct estimate," Mr Foley said.
"It is what it is. We had a choice.
"We could either walk away from the project and it would have collapsed or we had, as a Government, had to make it work."
Mr Foley denied the Government had intentionally misled the people of SA over the stadium costs and rejected any claims the cost blowout had been known before the March 20 state election.
SACA chairman Ian McLachlan said the Stadium Management Authority, which is overseeing the project, had become progressively aware over March, April and May that the redevelopment could be delivered for $450 million.
He said the authority was still looking at a series of options - "some of which will stay, some of which will be pared, and some of which will go out the door".
"It became obvious we could not do it for the original $450 million," he said. Mr Mclachlan said the Government had been notified formally in the last week and "prior to that we said it was tough"
"It still is damn tough," Mr McLachlan said.
Mr McLachlan rejected suggestions that the the stadium cost was a key election issue.
"Neither party brought this to the fore in any great way during the election," he said.
The extra money means the State Government now will pay $535 million to help rebuild the oval. That is a major backdown by Mike Rann's Government, which had pledged to cap its contribution at $450 million.
The $535 million does not include $20 million to build a footbridge over Torrens Lake.
The State Government also has extended the timeline for the authority to finalise its design and costings by two months to August 31.
Mr Foley yesterday told Parliament that "to all intents and purposes, it will be a FIFA-compliant stadium".
Mr McLachlan, however, said the new money would "not necessarily" guarantee a stadium able to host games if Australia won the right to host the World Cup in 2018 or 2022.
"Whatever happens, the World Cup has got nothing to do with this authorisation by the Government to fund the $535 million," he said.
The Federal Government will contribute $250 million if Australia wins the right to host a World Cup. SACA chief Mr McLachlan said: "If we have to wear the blame for underestimating the cost of a concept which has changed in scope, then we will wear the blame."
The Advertiser has been told Mr Foley became aware of the need for more funding in a memo from the SMA about five days ago.
He and the Premier met SANFL officials Rod Payze and Leigh Whicker on Monday. He told Mr McLachlan, Mr Payze and Mr Whicker yesterday morning that Cabinet and the Labor Caucus had agreed to increase the Government's contribution by $85 million.
Asked why the Government had agreed to the extra funding after originally saying there was "no bottomless pit", Mr Rann said the SMA had told him they could not do it for $450 million.
Mr Foley said the money would be contained in the State Budget, due in September. "We will leave a legacy no other government has left; we will have transformed the heart of the city," he said.
Liberal treasury spokesman Iain Evans said the people of SA had been "conned".
"The Government wanted a political fix for the election and conned the SA public into voting for them. Now they are running 100 miles from the costings," he said.
