Organisers have blamed the Victorian Labor government for contributing to any cost blowout in hosting the 2026 Commonwealth Games.
Commonwealth Games Australia CEO Craig Phillips issued the statement in response to Victorian Labor Premier Daniel Andrews’ announcement on July 18 that the state would withdraw as host of the Games—meaning organisers will be left to find a different host city soon.
Premier Andrews cited the growing financial burden as the reason for pulling out.
“Last year, when the Commonwealth Games authorities approached us, needed someone to step in to host the 2026 Commonwealth Games, as a state, we were happy to help out,” he told reporters.
“What’s become clear is that the cost of hosting these Games in 2026 is not the $2.6 billion (US$1.78 billion) which was budgeted. It is, in fact, at least $6 billion (US$4 billion) and could be as high as $7 billion,” he added.
“Frankly, $6 billion to $7 billion for a 12-day sporting event, we are not doing that–that does not represent value for money. That is all costs and no benefit,” Mr. Andrews said.
“I will not take money out of hospitals and schools in order to fund an event that is three times the cost as estimated and budgeted for last year.”
In contrast to the Victorian Games, the 2018 Games on the Gold Coast, Queensland, cost around $1.6 billion.
Number Do Not Stack Up: Organisers
Yet Commonwealth Games Australia and the Commonwealth Games Federation were scathing of the premier’s reasons, saying the Andrews government had been unclear in how it was costing the event and for also adding to the bottom line.“The multi-city model for delivering Victoria 2026 was an approach proposed by the Victorian government,” said CEO Phillips, in a statement on Twitter.
Mr. Phillips said Commonwealth Games Australia and its international counterpart were not desperate for a host, as suggested by Premier Andrews, and that the figures put forward by the premier during his press conference were not shared with organisers ahead of his announcement.
“The stated costs overrun, in our opinion, are a gross exaggeration and not reflective of the operational costs presented ... as recently as June,” he said.
“Beyond this, the Victorian government wilfully ignored recommendations to move events to purpose-built stadia in Melbourne and, in fact, remained wedded to proceeding with expensive temporary venues in regional Victoria.”
Mr. Phillips was open to reviewing the finances of the Games independently of those involved at the “coal face of planning and delivery.”
The Commonwealth Games Federation said Andrews’ figure of $6 billion was “50 percent more than those advised to the Organising Committee board” in June.
“We are disappointed that we were only given eight hours’ notice and that no consideration was given to discussing the situation to jointly find solutions prior to this decision being reached by the government,” the body continued. “Up until this point, the government had advised that sufficient funding was available to deliver the Victoria 2026 Commonwealth Games.”
Mr. Phillips added that the Victorian government had “jeopardised Melbourne and Victoria’s standing as a sporting capital of the world.”
Holding onto Power While Swimming in Debt
The move by the Andrews government comes as the state struggles with its ballooning debt.During the pandemic, the state borrowed $31.5 billion to fund lockdowns and other restrictions, including placing Melbourne under the world’s longest lockdown.
Under Premier Andrews, the government has introduced a steady swathe of taxes targeting large businesses and property owners to help deal with the costs.
At the same time, infrastructure spending continues unabated, with $75 billion quietly funnelled away.
