Art sculpture entangled in $20 million council cost blowout controversy

An art sculpture of a kangaroo wrapped in fairy lights is embroiled in a multimillion-dollar cost blowout controversy.

The City of Melbourne is set to pay $22 million for the eight-metre-high bronze sculpture by New Zealand artist Michael Parekowhai.

Entitled Yesterday, the piece was first commissioned in 2018 during Sally Capp's tenure as lord mayor, when current Lord Mayor Nicholas Reece was deputy.

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Back then it had a $2 million price tag attached and was expected to be installed at a Docklands park three years later.

But six years on the project has ballooned to 11 times its original cost and is still at least three years away from completion after extra statues, signs and landscaping were included.

Today Melbourne City Council defended its decision to commission the piece, claiming the $22 million price tag was "incorrect" and would be shared with private and public contributors.

"Public art drives visitation to Melbourne and strengthens our cultural fabric – and that's good for business and our economy," a spokesperson said.

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"The Southbank public art commission is one of the biggest public art undertakings – and we will deliver it in the heart of Melbourne's growing arts precinct by the end of 2027.

The council said it was locked in a confidential contract with the artists and would have "more to say closer to the time of completion".

Mayoral candidate Arron Wood suggested the council should reconsider its priorities.

"We are in a cost of living crisis," Wood said.

"If a household or a business has to tighten its belt, town hall should be tightening its belt as well."