The Victorian government has been accused of inflating the estimated cost of hosting the 2026 Commonwealth Games and ignoring options to justify cancelling the global sports event.
Premier Daniel Andrews pulled the pin on hosting the Games in Victoria after updated estimates put the cost at up to $7 billion.
“Frankly, $6 billion to $7 billion for a 12-day sporting event, we are not doing that,” he told reporters on Tuesday.
“That does not represent value for money, that is all costs and no benefit.”
The state budget last year outlined $2.6b would be spent preparing for the event across regional Victoria.
Geelong, Bendigo, Ballarat, Shepparton and Gippsland were named as host centres and the Melbourne Cricket Ground as the opening ceremony venue.
Mr Andrews said the government considered moving the Games to Melbourne, holding fewer sports and having fewer regional hubs, but all options were too expensive.
“None of those options stack up,” he said.
Treasurer Tim Pallas had been seeking a dollar-for-dollar contribution of $1.3b from the Commonwealth but no money was set aside in the May federal budget.
Mr Andrews said even if the federal government did come to the party, the Games were not worth the money.
Prime Minister Anthony Albanese said the decision to pull out was one for the Victorian government.
The Andrews government held meetings with Commonwealth Games leadership in London on Monday night Australian time, with organisers informed the 2026 contract would be terminated.
The Commonwealth Games Federation said the government did not discuss solutions with it before reaching the decision.
Commonwealth Games Australia chief executive Craig Phillips said the forecast cost overruns, in his view, were a “gross exaggeration” and the government didn’t seriously consider other options.
“The Victorian government ignored recommendations to move events to purpose-built stadiums in Melbourne and remained wedded to temporary expensive venues in regional Victoria,” he told reporters.
Mr Phillips said the decision will damage Melbourne’s global reputation as the sporting capital of Australia.
“I would be very careful if I was an international sporting body coming in and doing business in this state in the future,” he said.
The cost of breaking the Games contract is yet to be settled but Mr Andrews pledged it would be revealed at a later date.
He suggested contracts for major upgrades to sports venues and housing have not been signed, with minimal costs incurred to date.
While Victoria will no longer host the Games, some infrastructure projects will still go ahead.
There will be $1b spent on more than 1300 new social and affordable housing homes across regional Victoria and $150 million on tourism and events.
Planned upgrades to regional sporting facilities are also set to go ahead.
About 100 people based in Geelong were employed to co-ordinate the Games, with some expected to lose their jobs and others redistributed to other government roles.
Regional Victoria was the only bidder for the Games after South African city Durban lost the 2022 event and the original 2026 host Birmingham stepped in to fill the void.
Victoria’s opposition leader John Pesutto and Nationals leader Peter Walsh branded the scrapping a “massive humiliation” for the state.
“The cancellation of the Commonwealth Games is hugely damaging to Victoria’s reputation as a global events leader,” they said in a joint statement.
TIMELINE OF THE 2026 COMMONWEALTH GAMES
* March 2017 – Durban stripped of 2022 Commonwealth Games after failing to meet key deadlines
* December 2017 – Birmingham named as replacement host for 2022 Games, instead of hosting the 2026 Games
* December 2018 – The West Australian government rules out a Perth bid after an audit found it would cost about $1 billion
* September 2019 – The South Australian government announces Adelaide will not be a bidder
* February 2023 – Tasmania’s premier formally requests the island state be considered as a host
* February 2022 – Victoria makes an exclusive bid to host the Games
* April 2022 – Victoria awarded the Games, plans to become the first to host the event in regional areas
* May 2022 – Victorian government states $2.6 billion will be spent preparing for the Games
* June 2022 – Former Victorian COVID-19 response commander Jeroen Weimar appointed chief executive of Games organising committee
* July 2022 – Dates locked in for event to be held in March 2026
* August 2022 – Former Richmond Football Club president Peggy O’Neal announced as chair of the Games organising committee
* October 2022 – Shepparton named as fifth regional hub to host events and full list of sports released
* March 2023 – Former swimmer Petria Thomas reappointed as Australia’s chef de mission for the Games
* April 2023 – City of Greater Geelong says it will spend nearly $8 million on the event
* May 2023 – No money set aside for Games in the federal budget
* May 2023 – Tenders begin to go out for sports venue builds
* July 2023 – The Victorian government announces it will no longer host the Games, citing a forecast cost blowout in the billions
