Prime Minister Anthony Albanese will visit Tasmania this weekend to announce federal funding for the proposed $700 million AFL stadium, sources say.
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The Labor government's $240 million commitment would allow the stadium to be built and clear the way for the entry into the league of a Tasmanian AFL team after decades of attempts.
Outgoing AFL chief executive Gillon McLachlan has made construction of the stadium a requirement for Tasmania to be granted the league's 19th licence.
The state government has championed the project for the past several years, despite strong opposition from Tasmanian state and federal Labor politicians, Greens and independents, and even some of its own Liberal Party federal parliamentarians.
News of the Prime Minister's 'green light' signal has already stoked criticism - independent Clark MHA Kristie Johnston said if confirmed, the decision showed it had its priorities wrong.
"Where is the vision for future generations? Do we really want to leave behind a concrete monolith, a white elephant of the first order, as our legacy?
"The stadium is wrong on just about every front. It's brutal form disrespects our precious waterfront. It sucks taxpayers' money away from social projects, where its desperately needed."
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Meanwhile, several Labor Party sources confirmed that every Tasmanian Labor MP and senator lobbied the Prime Minister against the decision to support the stadium.
They also all voted unanimously against the project at a Labor caucus meeting last year.
It is understood that federal Tasmanian Labor parliamentarians are spooked by polling showing minimal support for the project, especially in key battleground seats of Lyons, Bass and Braddon.
More to follow.