Tasmania's Chocolate Fountain Promises: A Complex Funding Trail Unfolds

Strategic Insights -

Tasmanian Premier Jeremy Rockliff's announcement of a $12 million investment in a "chocolate experience" in Hobart has come under scrutiny, revealing a complex funding trail that spanned over two years. The project, pitched as a "bespoke chocolate studio," "chocolate lounge," and "immersion into chocolate making," had been discussed with Tasmanian public servants since February 2022. Internal communications and reports show that the project was initially pitched as a public-private partnership, with the government providing funding for planning, designs, and approvals.

Key Takeaways:

  • The project's initial proposal was made to the Tasmanian Department of State Growth in February 2022, seeking a grant for a demand study.
  • The department recommended providing a $79,800 grant to Simon Currant and Associates (SCA) for the study, matched by Mondelez International.
  • A month later, the developers asked for more funds from State Growth for a feasibility study, using the demand study to show the project's potential contributions to the Tasmanian visitor economy.
  • The project's business case was never developed, and the government did not have access to a detailed report on its economic impact when the funding promise was made.
  • The first $2 million of the government's funding promise was for "planning, designs, approvals," which was allegedly already privately funded by SCA.
  • The project's total cost is now estimated to be $155 million, with SCA stating that it will not be seeking further government funding.
  • Mondelez International has provided land lease and access to Cadbury branding, but has no financial stake in the project.

Statistics:

  • The demand study estimated that the project could add $104 million to the annual spending by tourists.
  • The government's investment in the project totals $8 million, with the second $2 million yet to be accessed.
  • The project's total cost is estimated to be $155 million, with private investment making up the majority of the funding.
  • The project plans to submit a development application with Glenorchy council later this year.
  • The government has yet to formalise the process for the final $8 million in funding.

Sources:

  • Tasmanian Department of State Growth internal communications and reports
  • Internal emails and briefs from the Office of the Co-ordinator General
  • ABC reports citing SCA spokespersons
  • Mondelez International documents and statements
  • Tasmanian Government press releases and statements by Premier Jeremy Rockliff