The ACT government says its plans to build a $1 billion hospital in Bruce will help support a multi-use precinct at the AIS, including a major rebuild of Canberra Stadium.
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In a submission to a federal inquiry into better ways to promote the capital, the ACT government called for Commonwealth investment in elite and community sporting facilities across Canberra.
It also conceded Canberra Stadium was "reaching the end of its useful life and does not meet contemporary design standards for a facility of its importance and use".
The potential of a eastern grandstand development at Manuka Oval, a federal-ACT partnership on an AIS redevelopment and funding for Canberra projects like Capital Football's "Home of Football" were also raised in the 14-page document.
But the stadium issue, which has been part of an ongoing debate over the past 13 years, provides new critical insight into why ACT Chief Minister Andrew Barr wants to redevelop at Bruce rather than build in Civic.
Tensions have been simmering for the past 12 months after Barr said he was moving away from a Civic stadium plan to investigate opportunities with the AIS at Bruce.
Barr cited design complications and the cost as the chief reasons, despite a feasibility report suggesting otherwise, but there has been little other insight.
The NRL and Rugby Australia have felt sidelined, despite being the only existing tenants of the stadium.
The government's submission, which was made public on Monday almost two weeks after the NRL's scathing assessment of Canberra's deteriorating facilities was published as part of the same inquiry, points to longer-term plans for Bruce as another reason.
The government has launched a controversial takeover of Calvary Hospital and plans to build a new $1 billion hospital at the same location, close by to the existing Canberra Stadium.
"Investment from both the Australian and ACT governments will be needed to ensure all major ACT sporting facilities, including its flagship stadium, enable Canberra, as the national capital, to highlight and achieve Australia's sporting potential," the submission said.
"There is a significant opportunity for the ACT and Australian governments to partner to revitalise the AIS precinct.
"This project could see upgrade and refurbishment of the AIS existing elite sporting facilities, a significantly renovated or rebuilt Canberra Stadium, as well as mixed-use development supporting new housing and business outcomes.
"The site's proximity to the new northside hospital, the University of Canberra and the Canberra Institute of Technology's Bruce campus mean there are opportunities in terms of innovation, education, health and health sciences, and productivity."
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The inquiry - being led by Member for Canberra Alicia Payne - is seeking input from a range of industries to investigate ways to better enhance Canberra's national significance.
The ACT government's input covered a wide range of issues including community and elite sport, cultural facilities, tourism opportunities and its infrastructure plan.
The joint-standing committee has gathered 38 submissions so far, including from the NRL, Cricket ACT, the National Capital Attractions Association, Questacon, the National Museum, the Canberra Convention Bureau and the Canberra Region Tourism Leaders Forum.
The NRL slammed the lack of investment at Canberra Stadium - a federal government owned asset leased by the ACT government - and said it did not have appropriate facilities for the venue to host men's and women's fixtures on the same day.
The ACT government is racing to build new female change room facilities ahead of the Canberra Raiders' NRLW launch in July.
The NRL also said Canberra's poor facilities meant the city was being overlooked for major events, and hit out at the plans to rebuild at Bruce rather than in Civic.
That prompted Barr to suggest the NRL come to the party to help financially support a new stadium build - like the AFL's $15 million investment in Tasmania - and offer free events whenever a new facility was complete.
That was viewed by some as disingenuous given the sporting codes feel like they have had no say or insight into the decision-making process.
Barr is hopeful of announcing a memorandum of understanding with the Australian Sports Commission - a federal government body - in the coming weeks to outline his vision for the Bruce precinct.
"The existing AIS campus is valuable to many of Australia's podium teams and athletes and offers critical infrastructure for both high performance and community participation," the ACT's submission said.
"However, many of the facilities are ageing, and require investment to bring them up to modern standards."
The government's submission said it had made efforts to make Manuka Oval the "best boutique venue in Australia", but a new eastern grandstand and upgraded spectator facilities would "unlock" more potential.
Canberra's community facilities are also feeling the pressure of a growing population, with Basketball ACT revealing last week it was still being forced to turn away players because it doesn't have enough courts.
It is calling on the government to fund a $30 million extension of its Belconnen facilities.
The government has already committed $28 million to a "Home of Football" at Throsby. It initially committed $20 million to the project in 2019, but delays have seen the costs blow out and Capital Football fears the project will have to be scaled back if its can't secure more investment.
The ACT government has suggested the federal government could help fund some of those projects, similar to deals with other states.
"Further to elite sporting infrastructure, there is strong demand for community sporting infrastructure in many parts of Australia, including Canberra," it said.
"Historically, the ACT has not received the level of federal investment into community level infrastructure as other jurisdictions.
"For example, the ACT Government is the sole government investor into the ACT's "Home of Football" project, while similar projects in Western Australia, NSW and Victoria have been significantly enhanced through federal investment.
"Recognition and action on local infrastructure investment needs will further realise the sporting potential of Canberra."
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