Motions

Adelaide Oval Hotel Development

Adjourned debate on motion of Hon. I.K. Hunter:

1. That a select committee of the Legislative Council be established to inquire into and report on a redeveloped Adelaide Oval, with particular reference to:

(a) the economic and financial benefits of the redevelopment of Adelaide Oval, including to whom the benefits are accruing;

(b) the operations and financial management of the Adelaide Oval;

(c) the corporate governance of the Oval, including the Stadium Management Authority;

(d) the financial returns to the South Australian National Football League, the South Australian Cricket Association, and the Adelaide and Port Adelaide football clubs;

(e) the financial contributions into the Oval infrastructure and into the broader sporting community from the Oval's operations;

(f) the proposed hotel development at the Adelaide Oval, and the process by which the government considered the proposal and approved financing the proposed hotel development;

(g) the impacts on the hotel industry in Adelaide of the proposed hotel development;

(h) the legislative, regulatory and other legal frameworks governing the operations of the Adelaide Oval, and any opportunities for improvement;

(i) the impact of the Oval and its operations on the surrounding Parklands and the legislative, regulatory and other legal frameworks governing further development in the Parklands; and

(j) any other related matters.

2. That standing order 389 be so far suspended as to enable the chairperson of the committee to have a deliberative vote only.

3. That this council permits the select committee to authorise the disclosure or publication, as it sees fit, of any evidence or documents presented to the committee prior to such evidence being presented to the council.

4. That standing order 396 be suspended to enable strangers to be admitted when the select committee is examining witnesses unless the committee otherwise resolves, but they shall be excluded when the committee is deliberating.

(Continued from 28 November 2018.)

The Hon. M.C. PARNELL (17:30): The Greens will be supporting this motion to establish a select committee to look at the issue around the Adelaide Oval and in particular the proposed development of a new hotel. It will come as no surprise to honourable members that on behalf of the Greens I have been vocal over many years about the alienation of the Adelaide Parklands for various inappropriate purposes, not the least of which are private commercial purposes. I have said it before, but I will say it again: what to one group of people is our inalienable heritage, to be preserved and protected for all time, is to someone else a development opportunity.

I am pleased that the terms of reference for this inquiry include a reference to the legislative, regulatory and other legal frameworks governing further development in the Parklands, because whilst the focus of this committee will be on the proposed private hotel adjacent to the Adelaide Oval, there are systemic issues that go to the heart of this alienation problem. There are issues with the Adelaide Park Lands Act; there are issues with the Development Act and its replacement, the Planning, Development and Infrastructure Act; there are also problems with the local planning scheme.

Again, as I have said in the past, the idea that certain things can happen in the Parklands with zero consultation, such as the creation of a sewerage works or a nuclear waste dump or anything that might vaguely be described as infrastructure—that these can be built in the Parklands without consultation is really an outrageous outcome.

So I am pleased that the terms of reference will be broad enough to enable witnesses to come along and talk about some of the issues that have resulted, I think, in the problem that will be the dominant item of business; that is, the proposed hotel next to the Adelaide Oval. With those brief words, the Greens will be supporting the creation of this select committee.

The Hon. F. PANGALLO (17:32): I rise in support of the motion of the Hon. Ian Hunter for a select committee on the Adelaide Oval redevelopment, including plans for a boutique hotel and the impact it would have on the Parklands and the hotel industry along with the overall operations of the Stadium Management Authority.

The new Adelaide Oval was one of the better projects delivered by the previous Labor government, and it deserves credit for bringing vibrancy back to the city and a new lease on life to the iconic ground, which stages sporting and major events in a degree of comfort, although I still wonder why it overlooked providing full cover to sections of seated areas.

Footy and cricket are, of course, the major beneficiaries of this taxpayer benevolence. The South Australian Cricket Association was able to wipe off a huge debt as part of the deal, while the SANFL walked away from its headquarters at Football Park, which has largely been sold for urban development, so both should be flush with cash reserves capable of funding the hotel themselves. If not, we need to know why.

South Australians are rightly proud of this facility. It has global recognition. However, it does favour the privileged. It is expensive to attend footy, cricket or other major events. Dining is not cheap, whether you are in one of the catered rooms or simply getting a pie, soft drink or beer and a bag of chips.

I would imagine it requires a great deal of money for it to be maintained in its pristine condition by the Stadium Management Authority, a private entity comprising almost entirely board members from the South Australian Cricket Association, the South Australian National Football League plus pokie baron, hotelier and Crows board member Peter Hurley, with former governor, Rear Admiral Kevin Scarce, as its chairman—all very highly skilled men, although it is disappointing there are no women.

There is potential here for conflicts of interest, particularly when it comes to the hotel proposal. The SMA or the government is unable to say who will run it yet, but I was told in this chamber that there are board members with that kind of expertise. I gather that the Hon. David Ridgway would have been referring to Mr Hurley.

It is also handy having a former Liberal premier and current state Liberal Party President John Olsen presiding if you ever needed someone with clout to lobby a Liberal government. Mr Olsen is a man of immense experience and knowledge, with a wide network of contacts in the business and political world. While I am not suggesting that there has been anything untoward in the process so far, questions do need to be asked of the SMA about the steps taken in securing the $42 million loan from the SA Government Financing Authority.

I note that in the other place yesterday the Hon. Tom Koutsantonis raised matters of possible conflicts of interest involving the Minister for Planning, Transport and Infrastructure, the Hon. Stephan Knoll, and his corporate links to a sausage company that does business at the Oval. Mr Knoll insists that he divested himself from any conflict within days of taking office.

Hotel operators are justifiably upset when you have the government giving a leg up to a private competitor. The Sofitel group only started building its new five-star complex last month. Majestic Hotels is building a third hotel in Tynte Street, North Adelaide. In a blistering email sent to the media, Eoin Loftus says it is an uncompetitive move. The Adelaide city council believes that it would set a dangerous precedent for private development of a public asset. I do not usually agree with some of the things Councillor Anne Moran has to say, but I do take her point when she says that another hotel near North Adelaide could have an impact on whether a hotel could be part of a redevelopment of the old Le Cornu site.

There is also the matter of the development further encroaching into the Parklands. While the government says that it will be on the existing building footprint, what guarantees will we have that the plans do not suddenly change? The committee will be able to look at any impact it will have and any legislative requirements for building developments of this type on the Parklands.

The SMA proposal might be an Australian first for a stadium; however, it is not a new concept. There are a handful of venues scattered around the world that have hotels attached. In Munich—

The Hon. T.J. Stephens: They need to be checked out.

The Hon. F. PANGALLO: Yes, we might have to go there then.

Members interjecting:

The Hon. F. PANGALLO: Wait until you hear this one.

Members interjecting:

The ACTING PRESIDENT (Hon. D.G.E. Hood): Order!

The Hon. F. PANGALLO: The Marriott has teamed up with football giant Bayern Munich to build its courtyard brand luxury suite level overlooking the football pitch inside the Allianz stadium. Others are now considering the idea, including Wembley Stadium, as a value-added leverage for wealthy sports fans. The plans here do not make it clear if you will be able to watch a Crows-Power showdown lying on a bed. I can see where the SMA sees advantages in having a hotel as another revenue stream, utilising its existing catering facilities and its tourist attractions—the rooftop walk above the ground and the expensive golf driving range. But will they be pandering to the elite thanks to the generosity of taxpayers?

However, the court of public opinion remains divided. An Advertiser poll last week had 57 per cent backing the idea, compared with 43 per cent opposed. I commend this motion to the Legislative Council.

The Hon. D.W. RIDGWAY (Minister for Trade, Tourism and Investment) (17:38): I rise to speak to the motion on behalf of the government. The Adelaide Oval has transformed over recent years to offer a multisport facility, hosting major events and concerts and providing function services. The redevelopment in 2014 further signified Adelaide Oval as an iconic site and the value delivered in driving the state's visitor economy.

The Adelaide Oval's proposed boutique hotel will provide additional services for visitors and the local economy, encouraging jobs and investment into the state. It will contribute to the vibrancy of the Riverbank Precinct and ensure that Adelaide Oval remains competitive with stadiums around Australia and internationally within the sporting, entertainment and events market.

The arrangements for the Adelaide Oval Stadium Management Authority lease will ensure the boundary of the Adelaide Oval remains unchanged and the asset will return to the state's ownership at the completion of the lease term. The funding provision from the South Australian Government Financing Authority is provided at commercial rates and the government supports continued innovation at Adelaide Oval. I indicate with those few words that the government will not oppose the establishment of the select committee of the Legislative Council to inquire into and report on the redevelopment of the Adelaide Oval.

The Hon. T.J. STEPHENS (17:39): I move to amend the motion as follows:

Leave out paragraph (2) and insert a new paragraph as follows:

2. That the committee consists of six members and that the quorum of members necessary to be present at all meetings of the committee be fixed at three members and that standing order 389 be so far suspended as to enable the Chairperson of the committee to have a deliberative vote only.

The Hon. I.K. HUNTER (17:40): I thank honourable members who have contributed to this debate and indicated that they will be supporting the motion. In moving the motion I outlined a series of questions that I and other members of the chamber, and indeed the public, have said need to be answered regarding the proposed Adelaide Oval hotel development.

In the week since I brought up this issue, and since others in the other place have brought up this issue, there has been significant media attention and some public debate on these questions. In particular, views that have been publicly expressed over several key areas where the public and others want some answers are the impact of the hotel development on existing hotels and other businesses in the CBD and North Adelaide; the means through which the taxpayer loan was sought, considered and approved; the appropriateness of the government providing a taxpayer funded loan for this private development; and the consequences of further development on that section of the Parklands.

The Hon. Mr Pangallo in his contribution raised questions of potential conflict of interest with minister Stephan Knoll. I should not be shocked, I suppose, but I am incredibly shocked that the Hon. Mr Pangallo reads the Hansard of the other place. I hope this committee of inquiry will not become known as 'Sausagegate'. But it is clear that the government has not been very good at answering these questions that have been raised in this place and the other place and in the public arena. The public needs to know—South Australians do need to know—and have some confidence in the explanations to these questions and I think that is exactly why we should be having a select committee of this council to look into it.

I thank honourable members for their support. I note the rush to get onto this committee so much so that the Hon. Terry Stephens has moved an amendment to increase the size of the select committee which I indicate I am very happy to support.

Amendment carried; motion as amended carried.

The Hon. I.K. HUNTER (17:43): I move:

That the select committee consist of Hons E.S. Bourke, D.G.E. Hood, T.J. Stephens, J.A. Darley, F. Pangallo and the mover.

Motion carried.

The Hon. I.K. HUNTER: I move:

That the select committee have power to send for persons, papers and records and to adjourn from place to place and to report on 3 July 2019.

Motion carried.