ADELAIDE OVAL

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Federal/State Relations, Minister for Defence Industries) (14:09): I seek leave to make a ministerial statement.

Leave granted.

The Hon. K.O. FOLEY: In December 2009 the state government offered conditional financial assistance of up to $450 million for the redevelopment of the Adelaide Oval. A condition of the offer of assistance was for the South Australian—

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: —Cricket Association (SACA) and the South Australian National Football League (SANFL) to reach a legally-binding agreement to redevelop the Adelaide Oval by 30 June 2010. This was an exciting breakthrough after 35 years of what had been a bitter divide between cricket and football being able to co-exist at the Adelaide Oval once again.

There is no doubt that bringing together these codes in the one location would bring to life the centre of Adelaide all year round with cricket, AFL football, rugby and other special events and, of course, potentially World Cup soccer being played in the city. This was a victory for the many sports fans who for years have wanted to see an upgraded Adelaide Oval, with football and cricket played at the same venue.

The agreement reached by the codes created a company called the Adelaide Oval SMA (that is, the Stadium Management Authority) Limited, which was given the task of overseeing the project and running the new stadium. Since the authority was formed, a significant body of work has been undertaken to establish the design, cost and scope of the redevelopment. The SMA is also required to undertake detailed financial modelling to determine the financial benefits for the SACA, the SANFL and the two AFL clubs: the Crows and the Power. The government made available $5 million to the Adelaide Oval SMA to engage the relevant contractors and consultants to assist them in this work.

The government also established its own steering committee to liaise with the SMA and to assist it where appropriate. The committee comprises representatives from the departments of Treasury and Finance, Transport, Energy and Infrastructure, Recreation and Sport, and Mr Bruce Carter, Chairman of the Economic Development Board. The SMA has also briefed the Adelaide City Council on its proposal and entered into discussions with it about what is required to progress this proposal.

In the past weeks there has been significant speculation about the progress of the SMA, its plans for the oval and the potential costs for these plans. Today I can advise the house of developments since the government approved its conditional offer of assistance. At the time of the original decision—

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: I have never seen your costings.

Mr Williams interjecting:

The Hon. K.O. FOLEY: I have never seen your costings.

Mr Williams interjecting:

The SPEAKER: Order! The Deputy Premier should be listened to in silence.

The Hon. K.O. FOLEY: At the time of the original decision—

Mrs Redmond interjecting:

The SPEAKER: The leader will please be quiet. She was very interested in this at the last question time.

The Hon. K.O. FOLEY: —cost estimates provided by SACA and the SANFL were based on preliminary concept designs. Since that time more detailed design work and costings have been prepared. The current estimate for the completion of the redeveloped Adelaide Oval, inclusive of work currently being undertaken by SACA on the western grandstand, exceeds the government's offer of assistance. Detailed—

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: —estimates are not yet available—

Mr Pisoni interjecting:

The SPEAKER: Order, the member for Unley!

The Hon. K.O. FOLEY: —and will be the subject of further work—

Members interjecting:

The SPEAKER: Would members on my left please be quiet. You occupied most of your question times last session on this; I am sure you are interested in what the Deputy Premier has to say. Others here are interested in what he has to say. Deputy Premier, just ignore them, please.

The Hon. K.O. FOLEY: Detailed estimates are not yet available and will be the subject of further work by the SMA and its consultants. However, extensive work undertaken by the SMA over the past few months on developing this project has revealed that the cost of the work cannot be completed for $450 million if the cap also includes the $85 million offered by the government towards the cost of the current western grandstand. Accordingly, in order to enable the proposal to be developed cabinet has agreed that, to ensure the project is given the best possible chance of going ahead, it is prepared to increase its level of financial commitment to this project.

Members interjecting:

The Hon. K.O. FOLEY: 'No, he didn't,' he says from all the way down there; well, why did you get relegated? So in addition to the $450 million for the redeveloped oval, it will also provide a contribution of $85 million towards the cost of current works being undertaken on the western grandstand. This will bring the total government offer of financial assistance to $535 million.

The government has today made it clear to the SMA that the costs for the stadium must be contained within this cap. Any costs in excess of this cap will need to be funded by cricket and football from their own sources.

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: The cost of the proposed pedestrian bridge over the River Torrens will now be met by the government as part of the riverside development proposed for the southern riverbank precinct.

In the event that Australia is successful in its bid to host the football World Cup in either 2018 or 2022, the commonwealth government will provide matching funds to South Australia to meet the cost of stadium infrastructure and training facilities. The commonwealth funds are significant, and are capped well in excess of the $100 million of financial support by the state. These funds will be obliged to meet any additional requirements to host World Cup football matches, with the balance retained by the state government to defray its financial commitment to the stadium.

The government has been advised by the SMA that it requires additional time to finalise its redevelopment plans and costings, and then conduct the detailed financial modelling required within the new cap.

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: The government is also making more time available for the SMA to get the work completed. The SANFL and SACA must now reach agreement and the SMA report to the government by the end of August this year. Following this the government will conduct its own due diligence on the designs, cost estimates and financial modelling to ensure that the redevelopment delivers the best outcome for the codes, spectators, the city and all South Australians.

Members interjecting:

The SPEAKER: Order!