‘Visit Victoria chased the Games, not vice versa’, insider reveals

Daniel Andrews said Victoria only took on hosting duties after Commonwealth Games chiefs “needed a host city to step in at the last minute” but an extraordinary delegation casts doubt on that claim.

Daniel Andrews has been accused of blatantly spinning why Victoria took on the Commonwealth Games, as it can be revealed a secret state delegation pitched for the event in London in late 2021.

Announcing his decision to scrap it on Tuesday, Mr Andrews said the state had only taken it on after Games chiefs “needed a host city to step in at the last minute” and that Victoria was “willing to help but not at any price”.

But the Herald Sun can reveal that the state went to extraordinary lengths to secure the event, with a Visit Victoria team proposing a regional Games in person to the Commonwealth Games Federation president Dame Louise Livingstone Martin in December 2021.

This was before it had even held talks with Commonwealth Games Australia, and three months ahead of Mr Andrews publicly announcing Victoria wanted to host the 2026 Games.

Daniel Andrews said Victoria was ‘willing to help but not at any price’. Picture: Valeriu Campan

Due to the unconventional December approach, Visit Victoria was sent back to deal properly with the CGA, and “within a week” it won exclusive negotiating rights for a Victorian event, insiders have revealed.

“The Commonwealth Games Federation did not ask them to rescue the Games,” one insider said.

“Visit Victoria chased the Games, not vice versa.”

Further doubts emerge about the eye-watering costs Mr Andrews claims are behind the decision to cut and run, with the Premier saying a report on the blowout was not ready to release, despite quoting the figures on Tuesday.

The Herald Sun can also reveal that lawyers for the federation in the UK have presented Victoria with early claims for compensation of more than $200m due to the contract being cut up, with insiders saying a settlement could be as high as $250m.

Hundreds of millions of dollars have already been sunk into the Games, leaving taxpayers with a bill for nothing, which could reach $1bn.

An unapologetic Mr Andrews said on Tuesday that the Games were being scrapped because the original $2.6bn budget had blown out massively and in recent months it became clear that the cost would be more than $6bn and as high as $7bn.

But senior Labor figures said the scale of overruns were a fantasy cooked up to justify a decision that was also driven by timelines being missed and a potential debacle in 2026 – an election year.

“They would have gone to every agency and asked for the maximum they thought things could cost,” one said.

Asked about the report on the blowout figures on Wednesday, Mr Andrews said “there isn’t an answer yet”, despite the government’s powerful expenditure review committee (ERC) using it as justification to pull out of the event on Monday.

“No one wanted this thing to cost five, six, seven billion. They are the best estimates we have,” he said.

The Herald Sun has also learnt that the full cabinet was provided only the decision taken by the ERC to endorse, with just a limited discussion on the reasons why.

Financial watchdogs and the state Ombudsman have been urged to probe the saga, with the potential for a parliamentary inquiry as well.

The Premier was asked again what taxpayers could expect to pay for the government’s decision to scrap the Games, but refused to say as he “didn’t want to cut across” negotiations.

Anthony Albanese has dismissed calls for Australia to find a solution for the Games. Picture: Martin Ollman

Albanese says Dan ‘very clear’ about reasons

On Thursday, Anthony Albanese dismissed calls for Australia to find a solution for the Games.

Leaders of all states and territories on Tuesday refused to come to the rescue of the event.

“The premiers have made their positions clear,” the Prime Minister told ABC.

Mr Albanese said he was “sad for the athletes” but reiterated that it was not the first time a Games had been cancelled, pointing to Durban being stripped of the right to host the 2022 games.

Mr Albanese said the federal government was advised of the decision to cancel the games based on the “changed financial arrangements and costs” just prior to the announcement.

“This is a decision that the Victorian government have made. They made it very clearly, they made it on their own, it was not a joint decision,” he told ABC Melbourne.

“We were informed about the decision and Premier Andrews has been very clear about why he made that decision.”

Asked if the state approached the federal government for more support Mr Albanese said: “We have discussions between state and federal governments all of the time”.

He rejected as “nonsense” Mr Pesutto’s claims the federal government did not put money in the May federal budget because it knew the event was not going ahead.

“There obviously hadn’t been finalised for the Commonwealth Games but the Commonwealth Games weren’t to be taking place until 2026,” he said, adding there were more budgets between now and then.”

Mr Albanese said calls for Mr Andrews to apologise to the athletes were a matter for him.

Senate inquiry to pursue reasons for cancellation

A senate inquiry into Australia’s preparedness to host the Commonwealth Games and the 2032 Olympics, which starts hearing evidence next month, will now pursue the reasons for the cancellation.

“Coalition senators will be forensically examining the numbers because the Premier’s statement just doesn’t add up,” Victorian senator Bridget McKenzie said.

Late last year, work was under way to draw up more detail on the cost of the Games amid concerns it could not be done within the $2.6bn price tag – at the same time as the government ridiculed suggestions it would be over budget. A major sticking point was the challenge of moving masses of people across different regional cities and between events without massive investments in buses or upgrades to the transport network.

Extra costs also came from several sports being added to the schedule last year, including coastal rowing, BMX, track cycling, shooting and golf.

“It was never realistic to assume international tourists would just go to Shepparton for one event, stay there and go back to Melbourne,” one insider said.

“Ask people in the country about the frequency and reliability of V/Line trains and they will say there’s a lot to be desired.”

Another growing expense was the cost of making the event close to carbon-neutral, which the Birmingham Games aimed for in 2022 by planting more than 800ha of forest to offset emissions.

The federal government has refused to reveal if Victoria made representations to it, or if it offered support, to enable the games to go ahead here.

Opposition Leader John Pesutto said Premier’s refusal to release the figures around the $4bn blowout was “complete rubbish”.

“There is no reason why he cannot disclose the costings which support his claim that the Commonwealth Games would cost $7bn to run,” Mr Pesutto said.

“But again, it doesn’t surprise me that it costs a whole lot more to do anything under the Andrews Labor government than it does for any other government.”

Victorian Chamber of Commerce and Industry chief Paul Guerra on Wednesday warned the state’s reputation now needed to be urgently fixed after the reputational damage of scrapping the event.

“Globally, we’re not in good shape,” he said. “We now have a government that has a reputation for ripping up billion- dollar contracts.”

“We celebrated the fact that Victoria had won the 2026 Commonwealth Games. Here we are 15 months later … and now apparently we can’t afford it. Every Victorian has a right to know how that cost blowout got to where it is and why we’re in the position that we are today.” 

Call for 'urgent investigation’

The opposition has written to the Auditor-General seeking an “urgent investigation” to reveal exactly how much Victorian taxpayers will be slugged by cancelling the 2026 Commonwealth Games.

Opposition leader John Pesutto made the referral on Wednesday as he visited Ballarat, one of the major regional cities that was set to benefit from the event.

Daniel Andrews has refused to detail how the government’s costings for the Games ballooned by over $4b and what scrapping the event will cost taxpayers.

Mr Pesutto said the Andrews government must reveal “exactly how much money it has squandered”.

Legal advice provided to the Queensland government indicated the costs of breaking the contract for the 2018 Gold Coast Commonwealth Games could have been “in excess of $1bn”.

“To think that Labor may have torched more than one billion dollars is a further indictment on its complete inability to manage money at a time when Victorians are facing unprecedented cost of living pressures and essential services are being increasingly stretched,” Mr Pesutto said.

“The Premier torched more than one billion dollars of taxpayers’ money not to build the East-West Link when he came into office and it now seems he is doing it again on his way out of office.”

The Auditor-General, an independent officer of the parliament, conducts audits of state and local government public sector entities.

John Pesutto has written to the Auditor-General. Picture: AAP

It will be up to the Auditor-General to determine the merits of the opposition’s referral. But it investigated the ripping up of the East-West Link contract in 2015, which the opposition has argued is a similar precedent.

The opposition said it is posing answers to these questions:

– How much will Victorian taxpayers have to pay to break the Commonwealth Games host contract?

– How was the Andrews Government’s $2.6 billion cost estimate so far off the actual cost – a near tripling of the initial estimate?

– Exactly how can the forecast costings of the Games change so suddenly and dramatically in just seven weeks since the 2023-24 State Budget?

– Which external parties conducted these cost estimates?

– How much has been spent on the Commonwealth Games to date?

– What will happen to the public servants employed to organise the Commonwealth Games? Will there be redundancies?

– Why was the 2026 Commonwealth Games Organising Committee advised as recently as June that “sufficient funding was available” for the Games?

– Why did the Andrews Government not discuss the funding situation with the 2026 Commonwealth Games Organising Committee to jointly find a solution?

– What will happen to the $2.6 billion allocated to delivering the Commonwealth Games in the 2022-23 Victorian State Budget?

– When was the decision made to cancel the Commonwealth Games and for how long was the Andrews Government aware of issues surrounding its delivery?

– Why did the Andrews Government advise Commonwealth Games Australia in June 2023 that the total cost of the Commonwealth Games would be $3 billion, just weeks before stating that the total cost would be more than double that amount?

– Is the cancellation of the Games the result of a further deterioration of the State’s finances, particularly as the escalating state net debt position is forecast to hit $171.4 billion in 2026-27 and a potential downgrading of Victoria’s credit rating by the ratings agencies?

Andrews says he doesn’t need to apologise to athletes.

The Premier was asked more than 10 times on Wednesday what taxpayers can expect to pay for the governments decisions to scrap the Games on Wednesday but said he did not have an answer for Victorians.

“We’re currently in negotiations on that very issue and I’m not going to cut across that,” he said.

“I am not engaging in an argument today or any day. We are instead focused on amicable and productive discussions that are going on in London.”

Mr Andrews also refused to apologise to the young athletes whose dream of competing on home soil in 2026 was shattered on Tuesday.

“You’re asking me to apologise for not running the Games and I’m not doing that,” he said.

“I understand that officials are disappointed, that athletes are disappointed but we’d all be pretty disappointed, I think, if we just push on and go and invest billions and billions and billions of dollars over and above the budget.”

“The government reserves the right to make its own decisions on behalf of Victorians.”

Mr Andrews refused to reveal who was responsible for making the final call to can the Games but said full cabinet was involved in discussions.

He pledged to release the details when negotiations were complete.

“All the relevant information will be given to you,” he said.

“I’m happy to have as much information out there as possible.”

Minister of Commonwealth Games delivery Jacinta Allan. Picture: David Crosling

The Premier said Victorians could trust that the government has the funding to commit to the $2b investment in regional Victoria, despite fudging the figures for the Games.

Mr Andrews, however, said he couldn’t give any of the five regional cities a timeline for when the 17 projects promised will be completed.

“As soon as we possibility can,” he said.

Mr Pesutto called the Premier’s refusal to release the figures around the $4bn blow out “complete rubbish”.

“There is no reason why he cannot disclose the costings which support his claim that the Commonwealth Games would cost $7 billion to run,” Mr Pesutto said.

“But again, it doesn’t surprise me that it costs a whole lot more to do anything under the Andrews Labor government than it does for any other government, either.”

‘Reputation for ripping up billion dollar contracts’

Victoria’s leading business group has slammed the decision to cancel the Commonwealth Games, saying the Andrews government now had a “reputation for ripping up billion-dollar contracts”.

Victorian Chamber of Commerce and Industry chief executive Paul Guerra on Wednesday warned the state’s reputation now needed to be urgently fixed after the reputational damage of scrapping the event.

“Globally, we’re not in good shape,” he said.

“We now have a government that has a reputation for ripping up billion dollar contracts off the back of yesterday’s announcement.”

Mr Guerra said it was disappointing that in such a short period the state had won the contract without a competitor, set their own terms and then pulled the pin.

“We celebrated the fact that Victoria had won the 2026 Commonwealth Games ,” he said.

“Here we are 15 months later after an election in November last year, after a budget just two months ago and now apparently we can’t afford it.

“Every Victorian has a right to know how that cost blowout got to where it is and why we’re in a position that we are today where the Commonwealth Games have been cancelled.

Deputy Liberal leader David Southwick took aim at the deputy premier, instead, demanding that Ms Allan step down immediately.

“Ultimately, Jacinta Allan needs to bear the brunt of all of this,” he said.

“Jacinta Allan is the Minister of Commonwealth Games delivery. All Jacinta Allan is delivering is a huge cost to the taxpayer and just Jacinta Allan should be held to account and she should go.”

“$30b worth of blowouts on major projects that Jacinta Allan has been responsible for and now the cancellation of the Commonwealth Games that she’s also been responsible for.”

Mr Andrews moved to soften the blow of losing the Games by announcing a new $150m fund as part of a $2b package offered to regional Victoria following the scrapping of the 2026 Commonwealth Games.

Mr Andrews, speaking from Maryborough beside Deputy Premier Jacinta Allen and regional development minister Harriet Shing on Wednesday, announced a $150m Regional Worker Accommodation Fund to provide access to affordable homes for key workers struggling to find accommodation.

The announcement comes as the Premier tries to soften the blow after Tuesday’s scrapping of the 2026 Commonwealth Games in Victoria.

Nearby Ballarat and Bendigo were two of the regional cities preparing to welcome thousands of visitors in 2026.

The fund will be on top of the $1b Regional Housing Fund proposed by the government that is expected to go towards building 1,300 homes.

Mr Andrews said business leaders had been calling for greater housing for their workers.

“One of the biggest barriers to staff is finding somewhere to put them,” he said.

Potential Commonwealth Games saviour emerges

Scotland has emerged as a potential saviour for the Commonwealth Games as the cancellation announcement leaves Victorian politicians reeling.

Scotland First Minister Humza Yousaf has revealed the government was exploring its options following suggestions the nation could jointly host the event.

Mr Yousaf said Scotland was “desperate” for the 2026 games to proceed, according to the BBC.

“It’s early days. I’ve noted the comments from Paul Bush and Commonwealth Games Scotland, looking at and exploring the possibility of whether or not Scotland could be part of something bigger, part of a multi-city, multi-country host,” he said.

“Those are sensible ideas all worth exploring. We certainly couldn’t commit to anything at this stage.”

Premier Daniel Andrews and Deputy Premier Jacinta Allan.

A UK government spokesperson said Victoria’s announcement to cancel the games on Tuesday was disappointing for both fans and athletes.

“We hope that the Commonwealth Games Federation and Commonwealth Games Australia will now work together to find a viable solution to hosting the event in 2026, so that athletes have the chance to compete and fans have the opportunity to enjoy this incredible event,” a spokesperson said.

Meanwhile, Birmingham City Council has said no to hosting the 2026 Commonwealth Games.

The city hosted the Commonwealth Games last year in a rescue operation after the South African city of Durban was awarded the 2022 event in 2015 but was later stripped of the rights after failing to meet requirements.

It was then that the Commonwealth Games Federation (CGF) turned in desperation to the British when Birmingham had in fact been scheduled to host the 2026 Games.

Pressure, it is reported, came from Buckingham Palace. The Queen was the patron of the Games with Prince Edward its vice-patron – which stressed the importance of the Games to the Commonwealth.

Birmingham City Council said it would not step in to save the 2026 games after the UK government committed more than £560 million to ensure the Games could go ahead and the local council agreed to another £190 million. Total expenditure was close to £1 billion.

“The Birmingham 2022 Commonwealth Games were a huge success for the city and wider region – providing a major boost to the city’s economy in terms of new jobs, inward investment and tourism – but it’s now someone else’s turn to stage this amazing event,” a Birmingham City Council spokesperson said.

Canada is also unlikely to consider taking over the 2026 event.

In a statement, Commonwealth Sport Canada chief executive Brian MacPherson said the organisation was still focused on a bid to host the 2030 Games in Alberta.

“Alberta 2030 continues to evaluate a potential bid for the Commonwealth Games,” he said.

“It is important that the 2030 Commonwealth Games build a cost-efficient, inclusive and sustainable legacy while acting as an economic catalyst for Alberta communities for many years to come. If we do not feel that can be achieved, then we will not submit a bid.”

Chief Executive Officer of the Victoria 2026 Commonwealth Games Organising Committee, Jeroen Weimar, Ms Allan, Mr Andrews and Commonwealth Games Legacy Minister Harriet Shing Picture: James Ross

Peter Beattie: Breaking contract likely to cost more than $1bn

It comes as the Gold Coast 2018 Commonwealth Games chair and former Queensland Premier Peter Beattie said breaking the contract would likely cost more than $1bn.

“I don’t know the ins and outs of the contract that was signed by the Victorian government,” he told 3AW on Wednesday.

“I don’t know if that was in the contract, I don’t know the deals but I do think that was the deal involved with the Gold Coast Commonwealth Games.”

Mr Beattie said the contract for the 2018 Games was “pretty tight”.

“The contract for Gold Coast required us to do a number of things and we had to comply with all sorts of rules and regulations,” he said.

“We had a tough requirement from the Queensland government, we had to stick within an envelope of funding and we had to find innovative ways to manage to do that.

“We returned over $100m to the Queensland government.”

Mr Beattie said his “biggest concern” was keeping the Commonwealth Games “alive”.

Home Affairs Minister Clare O’Neil said the decision to cancel the Commonwealth Games was a “huge shame for Victoria”.

The federal Victorian MP said she was devastated for all the athletes that were now going to miss out.

“It’s a decision for the State Government. It’s disappointing for everyone,” she said.

“Daniel Andrews has talked about the reasons behind this, it was going to be catastrophically expensive, he didn’t feel he could justify that to his taxpayers.

“We’ve got to respect that he’s been upfront about what’s gone (on) there, but yeah, of course, it’s a huge shame for Victoria.”

She also rebuked claims from Liberal Senator Jane Hume that the state was broke, saying that was “crazy”.

“If the problem is that we’re broke, I’m not sure how you can advocate that the Victorian government should have spent $7bn on something that was projected to cost $2.6bn,” Ms O’Neil said.

Commonwealth Games Australia chief Craig Phillips.

Labor MPs question Dan’s Judgement

Cancelling the Commonwealth Games has shocked Victorian political circles as government

MPs questioned their leaders’ Judgement and Nationals MPs seized on a chance to attack Labor in regional seats.

The announcement triggered significant chatter among Andrews government backbenchers frustrated with recent hits they had taken.

One Labor MP, who asked to speak anonymously, said the decision was damaging in the context of a recent backdown on taxes for independent schools and a suspected delay in Melbourne Airport Rail.

The MP said candidates in the west had campaigned on airport rail at the state election while regional MPs had regularly used the 2026 Games to spruik their message outside Melbourne.

“Now one is cancelled and the other is under a cloud, it is not ideal for a government that prides itself on delivering for Victorians,” they said.

“You have essentially two sections of the caucus unhappy. It is not diabolic but it isn’t good to have that many people off-side internally.”

Premier Daniel Andrews and former Tourism Minister Martin Pakula at Mars Stadium, Ballarat announcing Victoria’s successful bid for the 2026 Commonwealth Games.

Another MP said there had been murmurs about Deputy Premier Jacinta Allan, who was responsible for the Games and the favourite to replace Daniel Andrews.

“The title is Minister for Commonwealth Games Delivery and now the event isn’t being delivered,” they said.

“The buck starts and stops with her and the question has been asked whether any other minister would be in trouble if this was their portfolio.”

Others criticised the government for regularly spruiking the $2.6bn figure it now says was undercooked, with Commonwealth Games Legacy Minister Harriet Shing quoting the figure in parliament and during budget estimates.

One senior Labor source said the news was a turning point for the government.

“Jacinta had one job and that was to deliver the games,” they said.

“Today’s decision will haunt us to the next election.”

But speaking on Tuesday, Wendouree Labor MP Juliana Addison said the cancellation was prudent amid cost of living and housing affordability issues.

“I truly do believe that it is the right decision to not proceed with the Commonwealth Games given the cost,” she said.

“In the current economic circumstances the price tag of more than $6bn for 12 days of athletic competition is a lot of money.”

Victorian Nationals Leader Peter Walsh said the minister should be held accountable.

“This is another example where the Premier-in-waiting is just not up to the job,” he said.

“The buck stops with Jacinta Allan and she needs to take accountability for this failure.”

Federal Nationals for Gippsland MP Darren Chester said the announcement was another blow on the Latrobe Valley, which was promised major investment in association with hosting Commonwealth Games athletes and events.

“Coming on top of the Premier’s illogical ban on native hardwood timber harvesting which is already costing us local jobs, our region has no reason to trust anything the state government says,” he said.