The ACT Government has abandoned plans for a long-awaited new ice sports facility in Tuggeranong.

Weeks after acknowledging the project had taken longer than expected, the government announced today that it had failed to reach an agreement with the proponents Pelligra Group and Cruachan Investments.

“The ACT Government came to the table ready and willing to make this project a reality, with the funding secured and a strong desire to see it built,” Chris Steel, Minister for Sport and Recreation, said.

“However, it was critical that the Government’s significant investment delivered strong outcomes for the ACT community, and we simply could not reach an agreement that met those requirements.”

ACT Labor pledged to build the facility in 2016, and expected construction to begin by 2020. In 2019, it selected Pelligra and Cruachan as the preferred delivery partner to build and operate the facility, intended for Greenway, and entered into a non-binding agreement with them in 2022. The government committed more than $16 million – at the time, the biggest commitment by any government to ice sports in Australian history.

But COVID-19, legal and governance documentation, and environmental approvals delayed the project. By 2025, the proponents were raising concerns about the Tuggeranong site and project costs, and proposed it be built elsewhere.

The government deemed the proponents’ updated proposal unviable. Submitted in January, it sought more than double the original level of government assistance requested. The government  said it carried unacceptable risks and did not represent value for money.

“I understand this news will be deeply disappointing for members of the ice sports community and others who championed this proposal,” Mr Steel said. “We recognise the importance of these facilities, and the Government will continue to engage with stakeholders on the future provision of ice sports in the ACT.”

The government said the requirement for an ice-skating rink suitable for national competitions remains at the Phillip ice skating centre site.

Mr Steel said that the $16 million earmarked for the rink would instead be spent on other sport and recreation infrastructure in Tuggeranong.

“I want to assure Tuggeranong residents that this funding is staying local,” Mr Steel said.

ACT sporting clubs can share their infrastructure needs with the government through a survey; the government will consider Tuggeranong clubs’ feedback as a priority.

Labor backbencher Taimus Werner-Gibbings said he was “extremely angry and deeply disappointed” by the announcement. He tabled a petition earlier this year urging the ACT Government and its private development partners to deliver on their commitment.

“After 10 years, we have a right to feel betrayed by the news that the ACT Government and would-be developers Cruachan Investments and Pelligra Holdings have ended their partnership,” Mr Werner-Gibbings said.

“Tuggeranong deserves a venue with a centre of gravity that draws people here. While the Arena would have provided a permanent, state-of-the-art home for the ACT’s ice sports community, it would also have represented economic development and opportunity for Tuggeranong.”

Mr Werner-Gibbings said he would call on the government to urgently commit to delivering sporting infrastructure in Tuggeranong. In his opinion, the program should expand significant drawcard facilities; renew sport infrastructure in high schools and colleges; and upgrade community sporting facilities. This week, he intends to give Mr Steel a preliminary list of short and medium-term options based on conversations with Tuggeranong citizens and sports clubs.

“Tuggeranong is sick of waiting for our fair share,” Mr Werner-Gibbings said. “The Government must outline its plan; commit to a timeline; and get on with delivering the sports infrastructure our community needs and deserves…

“While this news is a dark day for Tuggeranong, the candle of opportunity is burning. The Tuggeranong Ice Sports Facility proposal in our community may be finished, but the need for investment in us is not.”

The ACT Ice Sports Federation was profoundly disappointed, but would keep working with government and other potential partners, spokesman Sandi Logan said.

“We’ve worked this long to get so very close to our objective, and we are not going to be silenced – or sullen – about this not-unexpected development,” Mr Logan said.

“Now it’s back to basics: ensure the Phillip Ice Rink continues to operate and improve its participants’ and spectators’ experience, and to the extent Geocon as the lessees have the capacity to maintain their excellent management of what is an ageing facility, we will support them 100 per cent in their operation.

“We will also have discussions with the new Sports Minister about a way forward and the options available to us, because while the elite level of some ice sports in the nation’s capital is catered for through, in the case of ice hockey, the Canberra Brave, the wider community of figure skating, ice dance, broomball, junior, senior and recreational ice hockey, and the new sport of curling about to start, still need a modern, safe and family friendly arena in order to grow and aspire to national and international  standards.”

Independent MLA Fiona Carrick called on property developer Geocon to outline its plans to invest in the Phillip Ice Rink. Ms Carrick said the lease for the Phillip Ice Rink site, owned by Geocon, requires that it be operated until a new facility is open.

Ms Carrick said: “While I understand that many people will be disappointed with the ACT Government’s decision to cancel the Tuggeranong ice rink project, the Phillip Ice Rink is a terrific facility which brings people into the Woden Town Centre every day of the week, creating vibrancy and social activity.

“The Phillip Ice Rink is an ageing facility that has suffered from a lack of investment over many years due to uncertainty over the future of the site. Now that uncertainty is resolved, at least for the medium term, Geocon needs to tell the community how it plans to invest in improvements to the Phillip Ice Rink to better serve the need of Canberra’s ice sports community.”