Question & Answer – Launceston Convention Centre – Development
Ms WEBB question to LEADER for the GOVERMENT in the LEGISLATIVE COUNCIL, Ms RATTRAY
[2.52 p.m.]
On 24 February the Premier announced a $10 million contribution of state taxpayer money to a privately developed and owned convention centre in Launceston. Can the government:
(1) Confirm whether or not alternative arrangements were first explored to ensure Tasmanian taxpayers would receive a direct long-term benefit or return, such as receiving a share of any future profits or eventual capital gains, pending the commercial development’s finalisation and operations?
(2) Clarify whether the government sought an equity stake in the development and if not, why not?
(3) Clarify whether the government sought any other form of revenue sharing arrangement and if not, why not?
(4) Clarify whether consideration was given to providing financial support as a subordinated loan at a concessional rate and if not, why not?
(5) Detail whether any other commercially sound options structured to provide long-term benefits to Tasmanian taxpayers were considered? If so, why were these options not adopted?
ANSWER
Mr President, the answers to the member’s questions are:
(1) The proposal from the proponent, which was publicly supported and backed by a $5 million commitment from Launceston City Council, sought a one-off investment of $10 million from the state government to help establish a purpose-built convention facility and boardwalk to maximise the opportunity for Launceston and the region. Council’s commitment was also contingent on the state government’s support. It’s noted that there was bipartisan support for this project with the Labor Party committing $20 million to it during the last state election. This project has been supported by the state government following a recent demand study by Visit Northern Tasmania and industry calls for such a purpose-built facility. The study outcomes included an estimated doubling of business events, bringing around $30 million of economic activity returns per annum to the city, region, and state.
I’m also advised that part of ongoing negotiations with the proponent, the state government has secured access to the convention space for the first decade of operations from its $10 million commitment to help enable more events to be held in the region and enhance the return on investment. This includes an annual credit of $440,000 inclusive of GST of convention space each year for 10 years. In addition, the final grant deed negotiations seek to ensure the state’s investment is protected in the unlikely instance of the facility being sold in its first decade of operations, such as the state and council having first right of refusal to purchase the facility. The government continues to finalise these arrangements with the proponent and the council, with relevant processes towards this project getting underway as soon as possible.
View Meg’s Question and the response provided by the Minister on 24 March 2026 here or below:
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