Axing Commonwealth Games could cost Victoria ‘up to $2b’
The Victorian government is locked in a “delicate” negotiation in London over breaking the Commonwealth Games contract, which could cost as much as $2 billion, according to the state opposition and legal experts.
Daniel Andrews abandoned the 12-day event, set to be held in 2026 at regional hubs including Bendigo, Ballarat, Shepparton, Gippsland and Geelong, after saying costs had blown out from $2.6 billion to $7 billion.
Victorian Premier Daniel Andrews on Tuesday announced that the Commonwealth Games would not be held in the state because they were too expensive. Joe Armao
The focus has turned to the Victorian government’s claims of a cost blowout, which Commonwealth Games Australia chief executive Craig Phillips says is “grossly exaggerated” and that the government “wilfully ignored” advice to scale back the Games to Melbourne.
“Here we are 15 months [after bidding], after an election in November last year, after a budget just two months ago, and now apparently we can’t afford it,” said Victorian Chamber of Commerce and Industry CEO Paul Guerra.
“I think every Victorian has a right to know how that cost blowout got to where it is… we now have a government that has a reputation for ripping up billion-dollar contracts.”
Monash University’s business school deputy dean Robert Brooks also questioned how the Games could blow out from $2 billion to $7 billion.
“Yes, supply chain costs and construction costs have increased, but this is still considerably more than that.”
Wesfarmers CEO and Olympian Rob Scott has joined the calls to say Melbourne should have hosted a scaled back version of the Games. Trevor Collens and Getty
The Victorian government said it planned to release the original business case undertaken by EY, but an
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