Stafford community is devastated. The last skating rink of Brisbane city council is being closed in September 2021. A “more” profitable business will take place at the venue: a gym. From an economic perspective, it is natural that more profitable and productive businesses take over less productive ones. However, this reallocation of resources is not always optimal from a social perspective when externalities—effects on society not accounted for by private businesses—-are at play. In this case, policymakers might have strong incentives to intervene.
The closure of the Stafford roller hockey rink is a perfect example because it is not just that one rink closes, it the last one standing! The Supply of skating rinks in Brisbane city council now approaches zero. I won’t focus on the costs of losing an identity (Stafford has a great tradition of skaters and hockey players. Many of them playing Olympic Games and competing at the highest international levels) but I will focus on the social costs of disturbing the lifestyle of 4000 to 5000 skaters that from the age of 5 come monthly to Stafford Skate Centre.
The first social cost involved is failing to account for the positive externalities of exercising during childhood and adolescence. A cost that a gym won’t compensate. A gym not only targets the older population but also entails individualistic physical activity. Skating and hockey at Stafford build community. Racing your friend, supporting your team, etc. Indeed, the rink closures threaten two roller hockey clubs to disappear.
The social benefits of exercising are large and long-lasting in children and adolescents. Reduction in mortality rates, obesity rates, improvement of mental health, all of which form more resilient members of our community. More resilient future families, workers, and employers. A study from the NSW government (Quantifying the Economic Impacts of Sport) provides an excellent review of all these benefits.
The second social cost resides in commuting and implied congestion costs associated with that fraction of skaters that won’t give up and will commute weekly to different suburbs. Indeed, in a report from 2019, Infrastructure Australia states "Without continued infrastructure investment in our cities, this report suggests this cost (crowding and congestion) will more than double by 2031 to reach $39.8 billion"
This is a call for the Brisbane city council and state representative(s) to act. This is precisely a case in which policymakers can and should make a difference. This is not a call to stop the Stafford Skating rink to be replaced by a gym but a call to facilitate and support the construction of a Brisbane city council skating rink in which skaters and hockey players can continue flourishing.
Kind regards
Jorge Miranda-Pinto
Lecturer in Economics, The University of Queensland
Committee member, coach, player, and parent of Stafford Roller Sports Club