Victoria blames Games fiasco on Russia-Ukraine war
The Victorian government has blamed the Commonwealth Games fiasco on Russia’s invasion of Ukraine and 12 interest rate rises in 14 months as Premier Daniel Andrews declined to attend a federal inquiry into the matter.
Commonwealth Games officials initially sought a “multibillion-dollar” payout from the Andrews government for its cancellation of the 2026 event, and independent mediators were crucial in containing it to a$380 million deal that went down to the wire.
Victorian Deputy Premier Jacinta Allan, the former minister for Commonwealth Games delivery, answers questions on Monday. Eddie Jim
Victorian Deputy Premier Jacinta Allan on Thursday said the original business case for the Games, which indicated the event might only generate 70¢ in economic benefits for every $1 invested, was made in a “very different domestic and global environment”.
“The war in Ukraine hadn’t started when that business case was providing the advice to government… and of course we hadn’t had all those interest rate rises,” Ms Allan said.
“It doesn’t matter whether you’re a household, a business, or a government, we’ve all had to work through the challenges that came with those interest rate rises. We’re in a very different environment today.”
Russia invaded Ukraine on Feburary 24, 2022, just two months before Victoria’s announcement on April 12, 2022, that it would host the Games.
Mr Andrews has declined to face a federal inquiry into Australia’s preparedness to host the Commonwealth Games and the 2032 Olympic Games in Brisbane, set to hold two hearings in Victoria next week, according to the office of Senator Matt Canavan, chairman of the inquiry.
Mr Andrews on Saturday revealed the payout nearly five weeks after making the shock announcement
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