The NT Government has committed more than $300 million on art galleries and museum projects across the Territory, with an independent MLA raising concerns that the recent cost blow-out of the Darwin city art gallery could result in a shortfall for the long-delayed National Aboriginal Art Gallery in Alice Springs.

The government, which is mired in record debt now expected to top $9 billion, announced on Sunday that an $88 million contract was awarded for the construction of the new State Square art gallery in Darwin, as well as the design on at least four other elements in the redevelopment of the precinct.

The government refused to give a specific cost for the gallery alone, which in late June they estimated would cost $50 million. Industry sources say once the design element was taken out of the contract, the gallery cost would be between $78 and $83 million – a huge cost blow out from previous estimates.

The gallery is part of the State Square and Civic Park redevelopment that was first announced in April 2017, with a pricetag of about $20 million at the time, but which now is estimated to have blown out to about $225 million, at least, based on Territory and federal government figures and the assumed art gallery cost blow-out.

The now-Labor government promised the Alice Springs National Aboriginal Art Gallery as an election commitment in 2016.

In November 2017, Mr Gunner said the Alice Springs gallery would cost $50 million in total, but in March this year when announcing a $7.1 million design contract for the Alice Springs gallery, the government stated the gallery will cost $150 million to build, and that it would contribute $50 million to the project.

However, the government’s own strategic business case from July 2019 states that the cost is actually expected to be $150 to $180 million, “dependent on factors including site and design issues”.

The Federal Government announced $80 million for the gallery in its budget in late October, which leaves a shortfall on the 2019 estimated cost of between $20 million to $50 million of the Territory government’s commitment.

This does not include the cost of the compulsory acquisition of the land where it will be built, a figure not officially made public, but reportedly worth $3.65 million.

In March, the government said in a statement if the Federal Government did not pay for the shortfall, the Territory Government would provide the additional funding in stages.

Alice Springs-based independent member for Araluen Robyn Lambley said she was concerned the gallery in Darwin will be fully funded and built – the government has not yet said when they expect it to open despite the construction contract being awarded – before the Alice one gets off the ground.

She added that the government came to power promising to be transparent but had not disclosed exactly how much the State Square gallery would cost.

“It is purely about politics. It is entirely consistent with how they have been operating with the National Aboriginal Art Gallery,” she said.

“From an Alice Springs perspective, I worry they will spend the money in Darwin in a project that will get them more votes than down here.

“The NT Labor Government has not added one additional cent to our project down here nor have they progressed it.

“Do you need another art gallery in Darwin? They are lovely and people enjoy them but they rarely break even, they usually add extra cost to the taxpayer.”

In early 2018, the government estimated construction of the Alice Springs gallery would begin in early 2020, but in March this year, Mr Gunner said the government predicted the design would be finished in late 2023, and it would open sometime in 2025, which would be well after the end of the government’s second term in office.

The government has mentioned the gallery 58 times in press releases since 2017, 42 times in 2017 and 2018. A long running dispute over its location began in early 2018, after the government ignored the recommendation of the steering committee it appointed.

In January 2019, the government said it had lost support from key traditional owners because of the location but put out seven press releases that year, mainly defending its decision to build it on Anzac Oval, then drew less attention to the project in 2020 and 2021 – four press releases in total – when the location became a legal fight.

Alice Springs Town Council announced in January of this year that it would not take further legal action to stop the NT Government from acquiring Anzac Oval, with five government press releases mentioning it since March when it announced it had taken the final step to acquire land.

However, in March, the Gunner Government also put out a tender for the development of a masterplan that could see up to $100 million spent on the Museum and Art Gallery of the NT – Darwin’s main art gallery at present – over 10 years to expand, which would presumably increase its running costs.

At the end of October, Arts Minister Chanston Paech announced $6.7 million for a renovation of the 10-year-old Godinymayin and Yijard Rivers Art and Culture Centre in Katherine, part of a $30 million gallery extension program.

This would take the promised NT Government spending on art galleries and museums at the highest estimate to about $310 million.

Debt continues to grow as more than a quarter of a billion dollars earmarked for galleries

In May, Mr Gunner said net debt was projected to reach $8.7 billion by the end of this next financial year, down slightly from previous projections but later anticipated to be higher, while the budgeted deficit for 2022-23 would be $1.1 billion.

The NT Independent also revealed in May the Auditor General found in a March report that the government had not implemented many of the budget repair measures it had pledged over the last three years and had no effective way of measuring whole-of-government savings or if it could ever get back to a sustainable financial position.

The MAGNT, is principally funded by the NT Government, and had its funding cut by 11 per cent over two years beginning in the 2019-20, financial year, or $848,000 in total. An MAGNT spokeswoman previously said they had been told to expect less in funding every year thereafter.

In January last year, then-acting arts minister Kate Worden told the ABC the reduction was part of “a range of fiscal reforms” to manage the government’s debt.

Deputy Opposition leader Gerard Maley said the Fyles Government could not pull off a functioning shade structure in Cavenagh Street, let alone a multi-million dollar art gallery in the middle of Darwin.

“We’ve been talking about an art gallery in Alice Springs for over six years and they have barely turned the sod,” he said.

“We have absolutely no faith in Natasha Fyles and her cabinet to be able to pull off this project in a timely manner and within budget.”

Mr Paech said the architects for the Alice Springs gallery had completed initial internal consultations with the NT Government and some specialist stakeholders and would soon move to the public consultation process.