Victorian Government Rejects Cheaper Plan for Hosting 2026 Commonwealth Games: Document

Fireworks erupt over the Alexander Stadium during the closing ceremony for the Commonwealth Games in Birmingham, central England, on August 8, 2022. (Glyn Kirk/AFP via Getty Images)

New evidence has surfaced that the Australian state of Victoria may not have a justifiable excuse to cancel the 2026 Commonwealth Games as it claimed.

On July 18, the Victorian Labor government dropped a bombshell announcement when it said the state would withdraw as host of the 2026 Commonwealth Games.

The announcement sent a shockwave across the country and sparked fierce criticisms from political parties, the public and the sporting community.

Victorian Premier Daniel Andrews cited a blowout in estimated hosting costs from the original $2.6 billion (US$1.74 billion) to over $6 billion as the main reason for the cancellation.

The premier also stated that organising the event would only bring costs and no benefit to the state, which contradicted what he said in April 2022 when announcing Victoria would be the host of the 2026 Commonwealth Games.

Meanwhile, a document obtained by ABC’s 7.30 program indicated that the Victorian government had turned down a cheaper proposal from Commonwealth Games authorities to pursue its expensive hosting plan, which eventually led to the withdrawal.

The state is currently grappling with financial problems due to its COVID-19 pandemic policies and expensive infrastructure projects.

It has rolled out a new round of taxes targeting big businesses and landowners to pay off the massive debts incurred during the pandemic.

Details of Commonwealth Games Authorities’ Proposal

In 2021, Commonwealth Games authorities approached Visit Victoria, a state-owned tourism and events company, to propose a plan for a 12-day event in which Melbourne would be the main venue.

In addition, existing facilities in regional centres such as Geelong, Bendigo and Ballarat could be utilised to assist Melbourne in holding sporting competitions.

By doing so, Commonwealth Games authorities believed Victoria could significantly reduce the financial burden of the event.

They estimated that the proposed plan would cost the state around $1.4 billion, including an investment of $375 million to upgrade some infrastructures.

However, the Victorian government later did not adopt the proposal and decided to proceed with its $2.6 billion plan to host the Games in five rural areas, namely, Geelong, Bendigo, Ballarat, Gippsland and Shepparton.

The plan also included the construction of some new expensive infrastructures, which Commonwealth Games authorities recommended against.

Commonwealth Games signage is seen in Birmingham, England, on July 28, 2022. (Chris Jackson/Getty Images)

Shaun Creighton, a former Olympian turned lawyer, said the Victorian government clearly had options for a cheaper 2026 Commonwealth Games.

“Just because the contract said the Games would be hosted in Geelong, Shepparton, Gippsland and Bendigo, it doesn’t mean certain events couldn’t be conducted in Melbourne as part of a variation [of the contract] if that became a more cost-effective model,” he said, reported the ABC.

“The fact there appears to not have been negotiations by the state government to try and come up with a suitable alternative, which could’ve been done by a variation of the contract, is one of the more extraordinary parts of this whole saga.”

Mr. Creighton’s comments were echoed by the Commonwealth Games Federation, which criticised the Victorian government for ignoring Commonwealth Games authorities’ recommendations.

“Since awarding Victoria the Games, the government has made decisions to include more sports and an additional regional hub and changed plans for venues, all of which have added considerable expense, often against the advice of the Commonwealth Games Federation and Commonwealth Games Australia,” the body said in a statement.

Victorian Taxpayers to Bear Huge Costs

The decision has left local taxpayers to bear the brunt of their government’s decision.

While the Victorian government had not disclosed the compensation amount needed for the breach of contract, the Opposition estimated that the price tag could be between $1 and $2 billion.

At the same time, the state still decided to go ahead with a $2 billion package to upgrade sporting infrastructures intended for the Games in regional areas.

This means Victorian residents might have to fork out $3-$4 billion without enjoying any benefits brought by the event.

Some lawyers said that the state would face even more enormous costs in the worst-case scenario, in which no alternative host city was found.

The Epoch Times has reached out to the Victorian government for comment but has yet to receive a reply in time for publication.