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Legislative Assembly for the ACT: 1999 Week 9 Hansard (2 September) . . Page.. 2874 ..

Bruce Stadium - Marketing and Sales Promotions

(Question No. 176)

Mr Stanhope asked the Chief Minister, upon notice, on 24 August 1999:

In relation to the marketing campaign and sales program for The New Bruce Stadium

(1) Why did the repositioning and promotional brief presented to The Campaign Palace, the company nominated by Spotless Services Australia Ltd's winning bid for Tender No. T980083 (marketing campaign and sales program for Bruce Stadium) to implement a communications strategy to reposition the stadium, refer in June 1998, to the redevelopment as a "$40 million dollar upgrade".

(2) Was the primary objective of the campaign to raise private capital, from the sale of naming rights, corporate suites, memberships, signage and advertising, and other items which would total $12-$13 million gross in its first year, ending on 7 July 1999.

(a) If so, was the objective achieved.

(b) If not, what revenue was achieved by the successful tenderer against each of the product categories.

(3) Why did the "grand opening" foreshadowed for December 1998, featuring either an international sporting event or a concert by a "world renowned performer or group", not eventuate.

(4) Does the Government intend to take any action under the tender's default clauses to address the contractor's failure to achieve the primary objective.

Ms Carnell: - The answer to the Member's question is as follows:

(1) The repositioning and promotional brief to The Campaign Palace was part of a tender document submitted by Spotless Services Australia Ltd. Spotless Services Australia Ltd did refer to the redevelopment cost in June 1998 as being $40 million. The redevelopment at that point in time was always recognised as costing $27.3 million which did not include operational assets associated with fitout of approximately $6 million. Combined, this at the time would have shown a total cost of $33 million. It is not known how the figure of $40 million was derived by Spotless at that time.

(2) The primary objective of Spotless Services Australia Ltd in performing the marketing and sales services was to reposition the Stadium and develop sales and marketing strategies and programs that would assist in generating revenues not just in year one, but over the longer term. A revenue target of $13m was outlined as part of its tender.

(a) no.

(b) The revenue that was achieved by Spotless Services Australia Ltd (SSL) can be seen as follows:

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