Perth sports stadium bill could top $1 billion

THE bill for WA's new sports stadium will climb to more than $1 billion unless the State Government gets a hurry-on and starts building, it has been claimed.

Master Builders' Association director of economics, Gavin Forster, said this week the $850 million project would go up an extra $6 million a month unless construction started by the recommended date of December next year.

"At the moment, construction costs are increasing by about 10 per cent a year,'' he said.
``That means costs (for this project) will go up $6 million a month. This could end up being a $1 billion-plus project.''

A State Government-appointed taskforce recommended earlier this year that construction of a new stadium _ either at Subiaco or East Perth _ start by the end of next year.

Construction costs of $850 million were based on a December 2008 start, with a four-year completion period.

But seven months after the release of the taskforce's report, the stadium project appears no closer to getting off the ground.

Indecision by the State Government about a preferred site meant it could not attract a funding commitment from John Howard or Kevin Rudd during the Federal Election campaign.

The Sunday Times understands that the lack of a firm proposal and a belief by both major political parties that a new outdoor stadium was not a vote winner, had cost WA about $300 million in federal funding during the election.

Now the State Government has been left with a possible $1 billion headache as it stacks up a new stadium against other important projects such as hospitals, a second desalination plant, roads and other infrastructure.

Sports Minister John Kobelke said yesterday all financing options were being considered _ including attracting private investment.

"The State Government made representations to both parties during the election and we are still seeking a commitment from the Federal Government to the development,'' he said.

"The determination of a preferred site is continuing, with further work being considered in relation to planning, environmental and transport issues.

"I have this week written to the councils of the Town of Vincent and the City of Subiaco seeking their relevant support in the return of the vesting of the Subiaco Oval land to the State Government, agreement to independent governance by the State Government and the planning control being provided by an appropriate development.''

While taskforce chairman John Langoulant prefers East Perth over Subiaco, Premier Alan Carpenter and several of his ministers are believed to be pushing for a new stadium at Kitchener Park, next to Subiaco Oval.

Town of Vincent Mayor Nick Catania said yesterday the council would support a new stadium at East Perth as long as the needs of nearby residents were not ignored.

News.com.au

Ooooh!!! WHAT a surprise! Gee, I didn't see that one coming! Wow.

the saga continues...

2.3 billion dollar surplus last financial year and its looking to be more this financial year

GET A MOVE ON FELLAS

what a shocking thing to suggest krusher, that would just be common sense

In that case we definitely can't afford it!

you'd think so

Pre-election I was told first hand by a mate in the trade who writes them that project construction quotes where being written with a "Rudd margin" factored in for fear he got in power and abolished the IR package.
This isn't meant to be a political statement or inspire philosophical debate, purely a fact that construction companies are now going to be charging more to allow for future expense from strikes, pay disputes etc etc.
Therefore yes, fully expect that for various reasons the longer they wait the more we the taxpayer will be paying for the wrong stadium.

The "Rudd Margin" was and is liberal scaremongering BS. Most contractors worth there salt have been factoring in these things for near on a decade. it just diddnt have a cool hip negative liberal pre-election name for it.

Quote:

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Originally Posted by Krusher

The "Rudd Margin" was and is liberal scaremongering BS. Most contractors worth there salt have been factoring in these things for near on a decade. it just diddnt have a cool hip negative liberal pre-election name for it.

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Of course they have been factoring it in, they just have to triple it now :offtopic:

Sorry Krusher, I dunno what it "was", but what it "is" is a reality that around mid year when signs of a change of gov firmed my mate and his peers within their company were instructed by their superiors to allow a buffer in their quoting compared to what they were doing prior to mid year.
I was told this by him post election and I am stating it post election, as I said "this isn't meant to be a political statement or inspire philosophical debate."