$765m for Games bills

COMMONWEALTH Games organisers will run a $17 million deficit in the next financial year, with increasing spend sharply outpacing income, according to yesterday’s State Budget.

However, the Games are expected to break even by the time Goldoc is dissolved on June 30, 2019, with the 2016-17 deficit far lower than forecast.

Expenses for the Games will ramp up significantly, from $190 million last year to $765 million in 2017-18.

More than $520 million of Goldoc’s $748.2 million income for 2017-18 will come from government grants, with $221.3 million from “user fees and charges”. It will make just $157,000 in other revenue.

Staffing of Goldoc is bud- geted to increase from 487 to 867, adding more than $103 million to expenses, with a further $712.8 million spent on “operational acitivity” as preparations ramp up.

The Budget papers reveal the Gold Coast Commonwealth Games village is progressing ahead of schedule, resulting in lower costs to the taxpayer. However, some of these savings have been offset by Government subsidies to developer Grocon, which have increased as a result of higher land sales.

Funding of the Games village will contribute to a forecast deficit of $28.2 million for the Department of Local Government, Infrastructure and Planning for 2017-18, Budget papers revealed.

There was an $84 million increase in expenses in grants and subsidies paid by the department, including “increased costs related to budgeted obligations for the Gold Coast 2018 Commonwealth Games village in accordance with the development agreement”.

Elsewhere in the Budget, remaining grant funds previously budgeted for Games venues have been allocated this year. They include: $1.3 million for the Village Roadshow Sound Stage 9 for squash, table tennis and boxing facilities; $1.2 million for Gold Coast Hockey Centre; $590,000 for Nerang mountain bike trails; $6.9 million for the Carrara precinct and $1.5 million for the Coomera Indoor Sports Centre for gymnastics and netball facilities.

A further $404,000 has been allocated to the Carrara Stadium upgrades for athletics.