Magazine - Perth Sports Stadium Bill Could Top $1 Billion

By Editor in Local Authority on 8th Dec 2007 6:00

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.

Source: http://www.news.com.au/perthnow/story

Read more articles in Local Authority, by Editor or from December 2007.