Public servants warned about Games cost blowout months in advance
Victorian Premier Jacinta Allan was warned months in advance that the Commonwealth Games would blow out by billions of dollars due to the event’s spread-out regional model, a parliamentary inquiry has been told.
Department of Jobs, Skills, Industry and Regions secretaryTim Ada told the inquiry on Monday that Ms Allan, then the minister responsible for delivering the Games, was warned in early March of a blowout, with an updated budget of $4.5 billion.
Victorian Premier Jacinta Allan faced a barrage of questions about the Commonwealth Games in parliament last week. Eamon Gallagher
The Games were initially costed at $2.6 billion, but then-premier Daniel Andrews axed them on July 18, claiming the 12-day event would cost up to $7 billion.
Mr Ada said the revised $4.5 billion budget was rejected in April. His department again provided a cost submission to Ms Allan in June seeking $4.2 billion, but the submission was not formally considered by the government for weeks and was rejected on July 14.
“It is clear now, with the benefit of hindsight, that the business case prepared in early 2022 did not reflect the true cost of delivering sporting programs spread across five cities, nor anticipate the significant cost escalation that’s been experienced in the construction sector,” Mr Ada said.
In early June Mr Andrews sought legal advice regarding terminating the Games and Mr Ada said he found out about the advice being sought around June 19.
Victoria’s bill for the Games has topped $500 million, figures provided to the inquiry show, with $43 million spent on operating grants, plus more than $21 million on villages and $6 million on police initiatives, on top of a $380 million compensation payout.
The state government also spent
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