$45m waste of money for a second AFL home
SEAN NICHOLLS AND BRIAN ROBINS
June 8, 2010
A CONTROVERSIAL $45 million redevelopment of the Sydney Showground at Homebush to house a second Sydney AFL team has been approved by the state government, despite the former premier Nathan Rees declaring it a waste of taxpayers' money.
The project was lobbied for by the disgraced former state development minister, Ian Macdonald, who quit Parliament yesterday and his close colleague, the former chief executive of ANZ Stadium, Ken Edwards.
The redevelopment of the showground has been opposed by the NRL because the government has already spent $27 million developing a training ground for the Greater Western Sydney team at Blacktown, which some say is now likely to be abandoned.
But in what appears to be a deal to placate the NRL, the government will also announce today that it has paid the rugby league $45 million to keep the grand final in Sydney for the next 10 years.
Last month the Herald revealed Mr Macdonald had invited the NRL boss, David Gallop, to his Northbridge home and offered him $45 million to secure the grand final – $20 million more than his own department had agreed on.
Mr Macdonald was accompanied by Mr Edwards at the meeting, which took place on March 17. Mr Macdonald explained the extra $20 million by saying it was necessary to secure the rights over a bid by Queensland. But the Queensland Events Corporation never lodged a formal bid for the event.
Mr Gallop told the Herald the NRL was "taken a little by surprise" by the offer.
Mr Edwards is close to Mr Macdonald and is a member of the minister's controversial 24-member Wine Advisory Council. Mr Edwards was paid by Mr Macdonald's department – on his recommendation – a fee as a consultant for his work on the NRL and two other major events.
The Greater Western Sydney team is expected to play only nine games at the 30,000-seat showground site. The AFL expects crowds of only 15,000 to 17,000. The team is due to enter the AFL competition in 2012.
In November, Mr Rees declared: "We're not about to give that sort of money to the AFL for a stadium next to an existing stadium. I'd much rather spend the money on hospitals and schools."
He lost his job as premier the following month to Ms Keneally, whose tilt for the job was supported by Mr Macdonald.
The announcement today comes as it emerged the NSW economy was expanding at its fastest rate in three years. State budget papers to be published today will show state final demand growing 2.5 per cent in 2009-10, a significant turnaround from the contraction of 0.5 per cent forecast earlier.
This is the fastest growth since 2007-08, when the NSW economy expanded 4.4 per cent.
The rebound is expected to produce a budget surplus in 2009-10 of $101 million, a $1 billion turnaround from the $1.02 billion deficit forecast as recently as December, when the midyear budget review was compiled.
This excludes the gain from the sale of government assets, such as the recent sale of a 30-year concession to operate NSW Lotteries for $850 million.
Instead, $510 million will flow straight through to the state's public servants, to help fund their superannuation.
