Line-up of Sporting Events at Sports Hub
Ministry of Culture, Community and YouthSpeakers
Summary
This question concerns the line-up of major sporting events at the Sports Hub and whether pricing issues have deterred bookings, as raised by Dr Lim Wee Kiak. Minister Grace Fu Hai Yien stated that the project, managed under a 25-year public-private partnership, is in its start-up phase and currently refining its operations and costs. She listed upcoming 2016 highlights such as the World Rugby Sevens and National Day Parade, noting that SportSG maintains close oversight of the facility’s event calendar. In response to concerns over rental costs and commercial returns, the Minister emphasized that the government's priority is ensuring the operator fulfills its contractual obligations to provide a vibrant activity mix. The Ministry continues to engage regularly with the consortium to align private sector operations with public service needs and stakeholder expectations.
Transcript
12 Dr Lim Wee Kiak asked the Minister for Culture, Community and Youth (a) what is the line-up of major sporting events to be held at the Sports Hub for this year ; (b) whether pricing is an issue why the Sports Hub is not attracting more bookings; and (c) what is the Government doing to attract more iconic international sporting events to be held at the Sports Hub.
The Minister for Culture, Community and Youth (Ms Grace Fu Hai Yien): Madam, Sports Hub Pte Ltd (SHPL) was contracted to design, build, finance and operate the Sports Hub for 25 years under the public-private partnership (PPP) arrangement. The key intent of the PPP arrangement, besides managing the risks associated with the construction, was to allow the Government to leverage on the expertise and international marketing networks of the private sector to create a vibrant mix of sports, lifestyle and community activities at the Sports Hub.
We share the high expectations that Singaporeans have for the Sports Hub. We want to see the Sports Hub succeed as the integrated sports and lifestyle destination that we envisioned. We pay close attention to all the issues and to the concerns raised by the public and stakeholders regarding the running of the Sports Hub and its events line-up.
Nonetheless, we also recognise that Sports Hub is still in its start-up phase, being in operation for less than two years. The operators are finding their feet, sorting out the operational problems and understanding the costs of operations. SHPL has acknowledged the challenges faced and, with our regular feedback, is continuously looking to improve its operations. We will give SHPL some time and room to respond to the feedback of stakeholders and the public.
For this year, we understand that the Sports Hub will play host to sporting events like the World Rugby Sevens Series, Super Rugby, Singapore Badminton Open, Women's Tennis Association Finals and OCBC Cycle, amongst others. The Sports Hub will also be hosting the National School Games.
In addition to major sporting events, the Sports Hub is lining up entertainment and lifestyle events that cater to everyone, like "Disney on Ice" for the family. Furthermore, there will be more programmed sporting activities, such as free Learn-to-Play programmes, regular fitness classes and events like the 100 Plus Promenade Run and the Sports Hub Stepper Challenge. The Sports Hub will also be welcoming many Singaporeans for the National Day Parade which will be held at the new National Stadium for the first time.
As a national icon, the success of the Sports Hub is a key priority for us in MCCY. To this end, SportSG is working closely with SHPL and keeping a close watch on the Sports Hub events calendar.
Dr Lim Wee Kiak (Sembawang): The Minister said we need to give them more time. It has been two years already since the Sports Hub was operational. When we say give them more time, how many more years do we need to give, for us to see that there are more activities coming up? Given the scale of the project, I am not sure what was the investment put in by the consortium, but what are their expected returns in the first place? Is it reasonable or is it unrealistic? As a result, are we having problems in terms of pricing and is that the reason why we are not attracting all these programmes? Is it because of price or is it because of some other factors?
Ms Grace Fu Hai Yien: Mdm Speaker, I would like to thank the Member for his supplementary questions. It is an early time, early stage of operations. As Members will recall, 2015 saw several major sporting events, like the SEA Games and the ASEAN Para Games (APG). These took place for the first time ever in this new national stadium and also it was the first time for us to hold such large-scale events. So, will these be repeated in the following years? Probably not. So, does it mean that SHPL has to work harder to get more major events? Probably yes.
We are still in the process of firming up the line-up for 2016. I think we should really give them time. We are looking at the programme. It seems to be shaping up well, although there is still a lot to be done and that is the reason why we are keeping a very close dialogue with the Sports Hub management.
As to whether the pricing is a result of expected returns or not, this is not something that matters to MCCY. As far as we are concerned, there is an obligation to us under the contract. We will see to it that their obligation to the contract is discharged properly and the expectation of the Government and the public is being met.
Mr David Ong (Bukit Batok): Two supplementary questions. A high rental cost has always been a point of contention between the event organisers and Sports Hub Pte Ltd. What more can be done by the Ministry to make this public-private partnership (PPP) work, to better align public service needs as well as private sector ones? The second question is: although it is still early days, what kind of engagement does the Ministry have with Sports Hub Pte Ltd and will it review the current PPP arrangement with Sports Hub, especially for national icons, such as the National Stadium?
Ms Grace Fu Hai Yien: As to rental cost, I think the concern is well noted and without the privilege of having information on private negotiations between SHPL and the event organisers, we are not in a position to make specific comments about the cost faced by the event organisers. I would like to again remind Members of my answer earlier on, that I would like to take, in a way, a calendar approach. We would like to look at the entire offering, what they have managed to secure, what they are bringing to us across all segments of the public that we are trying to cater to.
I can assure Members that discussions between SportSG and SHPL are taking place very regularly. I would say that it is something that the Ministry is also watching very closely. So, I can assure Members that we are very, very well engaged with SHPL.