Adelaide Venue Management Corporation

676 The Hon. Z.L. BETTISON (Ramsay) (25 August 2021). What grants and subsidies were provided to the Adelaide Venue Management Corporation as referred to on Budget Paper 3, page 71 of the 2021-22 state budget?

The Hon. S.S. MARSHALL (Dunstan—Premier): I have been advised:

The grants and subsidies provided to Adelaide Venue Management Corporation (AVM) referred to on Budget Paper 3, page 71 of the 2021-2022 State Budget, are provided by the Department of Treasury and Finance (DTF), and relate to interest payments and guarantee fees on an interest only loan from the South Australian Financing Authority (SAFA), used to fund the redevelopment of the Adelaide Convention Centre (ACC).

AVM has managed the ACC since 2015 when it took responsibility for the Adelaide Convention Centre Corporation.

The ACC redevelopment project budget was $396.821 million with approval to draw down $382.321 million in borrowings. The balance of the project cost was funded from AVM’s future asset replacement account.

The ACC redevelopment project was to be wholly funded by a capital injection to the ACC through state Australian government grant funding. However, as part of the 2012-13 budget process, cabinet approved a change in funding arrangements to an interest only loan facility to be provided by SAFA to the Adelaide Convention Centre Corporation. It is understood that the grant funding was diverted to the Adelaide Oval redevelopment project. At that time, cabinet also approved that the ACC would be provided with an annual grant equivalent to the interest repayments and guarantee fees on the loan. AVM received $19.1 million in 2020-21, in relation to the grant which was subsequently paid to SAFA.