Prime Minister Anthony Albanese has officially announced the federal government will contribute $240 million for a stadium on the Hobart waterfront at Macquarie Point.
The Macquarie Point stadium announcement comes a day after the PM joined Premier Jeremy Rockliff to say the federal government would tip in $65 million to upgrades at Launceston's York Park.
The Tasmanian government has committed $375 million to the $715 million project, with $15 million from the AFL and $85 million in "borrowings against land sale or lease for commercial uses".
It left a $240-million gap for the Commonwealth to fill, sparking vigorous political debate both in Tasmania and federally, and drawing opposition from state Labor, Greens and independents, as well as from Tasmania's federal Liberals and independent MP Andrew Wilkie.
Mr Albanese said the funding would contribute to an "urban development project that will create enormous economic activity for Hobart" and the rest of the state, with 4,200 jobs projected for the construction phase.
"This is about bringing life and economic activity to this site," he said.
Mr Albanese said the "refreshed plan" would include consultation with First Nations groups, the local council and RSL Tasmania.
Mr Albanese promised it would include social housing and commercial and recreational spaces, but there was no extra information on how many houses would be built, or how a business centre would fit on the site and in the budget.
There was also no new information about what the stadium would look like, whether it would have a roof, and whether it would accommodate other sports such as cricket.
Cost blowout raised
Given that lack of detail, Mr Albanese was asked who would pay if the development went over the $715 million estimation.
"When something happens like this, you can look for, 'What happens if there's another global pandemic? What happens if a range of things occur,' or you can be optimistic," he said.
"A lot of work has gone into this urban redevelopment project. A lot of work. Costings have been done.
"Our contribution is capped as the Commonwealth contribution always is for something like that, but I have confidence the Tasmanian government will be able to get this project right."
When asked if the AFL would have to contribute if the cost of the project blew out, Mr Rockliff was evasive.
"I'm not a pessimistic person," he said.
"How could I be pessimistic about the state of Tasmania?"
The stadium has been a non-negotiable piece of infrastructure in the AFL's granting of the licence.
"It's not an Australian Football League if it leaves off the south island, and that's what has occurred for too long," Mr Albanese said.
Mr Rockliff said the final piece of funding would transform the site "into a world-class multipurpose entertainment and sporting venue."
"This is more than just a multipurpose sporting and entertainment venue, this is an urban renewable project which will unlock a potential for housing, unlock potential for small business, entertainment, sport but also, bring together a significant transport infrastructure," he said.
"All Tasmanians can come here and be entertained and watch their favourite footy team, which will be their own Tasmanian AFL team after decades of wanting, hoping and dreaming to have our own side."
Licence decision 'in coming days'
In a statement, AFL chief executive Gillon McLachlan welcomed the announcement and said the issuing of a team licence was imminent.
“For a club to compete and succeed on the national stage, it needs a home that enables and empowers it to compete from the start, on and off the field, and today’s announcement gives a potential Tasmanian club that opportunity,” he said.
“The stadium at Mac Point is the final workstream, with the question on a 19th licence to be answered in the coming days.”
Before Tasmania can join the league, the existing club presidents need to approve the bid the state government has put together, which now includes a new stadium.
To be granted a licence, only six of the 18 club presidents need to approve the bid, and given only one or two have expressed misgivings, it seems overwhelmingly likely to succeed.
Once approved, a Tasmanian team would not join the national league until at least 2027, and more likely 2028. The stadium is not expected to be complete until 2029.
The current proposal is for the new team to play seven homes games in Hobart and four at York Park in Launceston.
Protesters heckle prime minister
A group of people calling for more housing interrupted the funding announcement.
A mix of social and affordable housing is included in the proposal.
Mr Albanese said housing would be "a major focus" of the plan and it was the democratic right of opponents to voice their views.
"Crown land at Regatta Point will be developed through a private-public partnership, including affordable housing, housing for essential health workers so close to the hospital facilities here."
Leaders 'kowtowing to AFL thugs'
Labor leader Rebecca White said the stadium should not have been a condition of gaining an AFL licence.
"Tasmanian Labor has always supported our bid for an AFL and AFLW team, but we have been equally clear that a billion-dollar taxpayer-funded stadium should not be a condition for us to get a licence and is the wrong priority for our state," she said in a statement.
"If I was Premier and had a billion dollars to spend to benefit Tasmanians, I would spend it on real priorities like improving our health system, building more housing, and lowering the cost of living."
Independent MP Andrew Wilkie said it was "insane" a new stadium would be built when one already existed at Bellerive.
"We're going to spend probably well over a billion dollars to get another stadium in Hobart, with no improvement except 3,000 seats," he said.
He said Mr Albanese and Mr Rockliff had failed to see the community did not want a stadium.
"They both need to reconnect with the communities that elected them and expect them to serve the community, not kowtowing to, frankly, the thugs in the AFL," he said.
Tasmanian Greens' leader Cassy O'Connor said the announcement was "a betrayal of the Tasmanian people".
"Overwhelmingly, the Tasmanian people reject this stadium. They want homes and a functioning health system."
Greens senator Nick McKim said today's decision suggested Mr Albanese had "abandoned his roots", referring to him having grown up in public housing.
"The prime minister today drove straight past the tents of homeless Tasmanians on his way to announce a Liberal project for an AFL stadium that Tasmania does not need," he said.
Mr Albanese has had a long association with Macquarie Point, having allocated $50 million in 2012 for remediation works at the site when he was federal infrastructure minister.
A group of prominent Tasmanians opposed to the stadium last week launched their alternative vision for the site, featuring 1,000 homes, a swimming basin, and a relocated state library at a cost of around $400 million — about half the stadium's price tag.