By Rachael Ward

Tasmania’s AFL stadium is being built in the wrong spot to an unrealistic timeline and the price tag will blow out to more than $1 billion.

That’s according to an independent report from Australian economist Nicholas Gruen, released by the Tasmanian government under a deal struck with the Jacqui Lambie Network to secure power.

It found the cost of the upcoming Macquarie Point Stadium had been “significantly understated” and would blow out by $321 million, while the cost-benefit ratio had been “significantly overstated” at 44 cents in every dollar invested by Tasmania.

“Tasmania deserves an AFL team and must have it at the right cost but not at any cost,” Mr Gruen said in the report.

“Tasmania is not a wealthy state and it must meet substantial social and economic challenges.”

Mr Gruen said substantial costs could be avoided by scrapping the stadium or renegotiating terms of an agreement with the AFL over a local team, however he said community engagement was needed.

He found the project was already displaying the “hallmarks of mismanagement”, attributing that to officials’ attempts to deliver it without borrowing more than $375 million as promised by the state government which “cannot be met”.

The construction of the 23,000 seat waterfront stadium is a condition of Tasmania’s entry into the AFL, with the Tasmanian Devils due to join the competition in 2028.

Some 200,000 people have signed up as founding members to the club, at a cost of $10 per person.

In September, developers behind the project released a 4000-page application which showed the price tag increased by $60 million to $775 million.

Mr Gruen’s report found the stadium is likely located in the wrong spot and the location decision was a “flawed” process effectively made by both the Tasmanian Government and the AFL.

“The site selection analysis released was hasty and partial and gives the strong impression of being crafted to support conclusions already made,” he said.

Mr Gruen took aim at the deal struck between the Tasmanian government and the AFL as “overspecified and impos(ing) needless costs” with an unrealistic timeline.

“It is not too late to achieve an AFL-ready stadium at lower cost, with lower technical risk, and with less community division,” he said.

Recommendations include having the first five to seven AFL seasons played at an existing stadium, and extending the timeline for opening by at least four years to allow for broader planning and a new cost analysis.

Jacqui Lambie Network member and MP for Lyons Andrew Jenner urged the government to “tweak” the project to rein in costs and said Tasmanians would be disappointed if the findings aren’t taken seriously.

“You’ve got a cost benefit of 44 cents in every dollar, I appreciate most huge structures do fall short but at such an amount? Tasmanian hasn’t got that sort of money,” he said.

Tasmania’s business, industry and resources minister Eric Abetz on Friday said the government is still moving ahead with the project.

“The transformation of Macquarie Point will shape Tasmania for generations, and unlock decades of investment, jobs, and opportunity,” he said.