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Cost of abandoned Design Capital bid revealed

Jun 25, 2015
Photo: Nat Rogers/InDaily

Photo: Nat Rogers/InDaily

The State Government spent more than $80,000 preparing Adelaide’s bid to become World Design Capital in 2018 before it was abandoned, new documents show.

Last month, InDaily revealed the secretive Olympic Games-style bid – protected by confidentiality agreements signed by all parties – had been abandoned, despite months of work by the Government, Adelaide City Council, South Australian universities, BrandSA, national design, planning and architecture institutions, state cultural institutions and the Jam Factory.

Had the bid been successful, it would have brought a year-long festival of design to Adelaide, likely comprising hundreds of events around the city, including a design-themed New Year’s Eve party.

The development of the bid was considered the most significant collaboration of the state’s design industry since the days of the Integrated Design Commission.

Documents released to Liberal MP Stephan Knoll under Freedom of Information laws show the State Government spent $80,324 on contractors, photography and packaging for bid documents before abandoning the application.

A summary of State Government expenditure on the abandoned bid.

A summary of State Government expenditure on the abandoned bid.

Knoll said expenditure on the bid was “wasted money” because the Government chose not to see it through to the final stage.

“Had the bid gone through and failed would be one thing, but to not even complete the bid process shows that this money has been wasted,” he said.

“Especially in light of constrained budgetary times, the Government needs to be financially prudent in every area.

“We’re not knocking the idea of bidding for the World Design Capital.”

A Department of State Development (DSD) spokesperson told InDaily this morning that despite the fact the bid was not going ahead, its development would continue to have benefits for the state.

“Much of the work undertaken as part of the bid process, particularly identifying Adelaide and South Australia’s design capability, will continue to be beneficial for the state into the future,” the spokesperson said.

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“Material prepared during the process has already been presented during one of the recent trade delegations to the Shandong province in China.”

Last month, a DSD spokesperson told InDaily the Government scuttled the bid because it was not able to sign on to the conditions of the World Capital Design Host City Agreement required by the organisation running the competition.

“The Government of South Australia has been negotiating with the International Council of Societies of Industrial Design (ICSID) regarding the terms of the Host City Agreement as part of the bid process,” the spokesperson said last month.

“Regrettably, the conditions of the World Design Capital Host City Agreement were not accepted by the State Government and it has been determined that Adelaide’s bid will not proceed to the final stage.”

The spokesperson said the Government was unable to reveal which conditions were unacceptable because of non-disclosure agreements signed with ICSID.

According to the ICSID website, a successful host city would have to spend about around $640,000 in administration and hosting fees (including the $10,000 application fee noted in the FOI document).

However, the site spruiks the short-term economic benefits of the title – “increases in visitors, local direct spending, jobs creation” – which “are likely dwarfed by the economic, social and cultural benefits (host cities) gain over the long term”.

Lord Mayor Martin Haese told InDaily last month: “It is disappointing to learn that the bid for Adelaide to be the World Design Capital in 2018 will not proceed”.

“However, I am hopeful that this hard work will not be in vain and that together we will find alternative ways to celebrate the importance of design in the social, cultural and economic life of our city.”

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