Premier Andrews defends decision despite $380m Commonwealth Games cancellation fine

The Premier has doubled down on his decision to cancel the Commonwealth Games in the wake of an eye-watering fine.

Victorian Premier Dan Andrews has defended his decision to cancel the Commonwealth Games in the wake of a $380m taxpayer bill.

The eye-watering sum was revealed on Saturday morning as negotiations came to a close with all Commonwealth Games parties over the government’s shock decision to withdraw from hosting the 2026 event.

The Andrews government said their decision to cancel the games was due to a major blowout in costs they estimated had climbed to up to $7billion.

Speaking to reporters on Saturday morning, Mr Andrews said even with the multi-millionaire cost, the government would be saving at least $4 billion.

Victorian Premier Dan Andrews has doubled down on his decision to cancel the Commonwealth Games. Picture: NCA NewsWire / Luis Enrique Ascui

He said the settlement was the best of three options Victoria faced in the wake of the cancellation. Picture: NCA NewsWire / Luis Enrique Ascui

He said settlement was the best of three options the government was presented with, admitting that contesting the “break fee” would have resulted in a years-long legal battle at an even higher cost to the taxpayer.

“And who knows what the ultimate number would have been,” he said.

He said he did not want to downplay the impact the cancellation had on those were closest to the sporting event, namely the athletes and the regional communities who were set to benefit from the tourism and infrastructure boost.

“I‘m not for a moment downplaying the obvious impact of those who are closest to this to this sporting event,” he said.

Leader of the Opposition John Pesutto has slammed the government for cancelling the Commonwealth Games in the wake of a $380m fine. Picture: NCA NewsWire / Luis Enrique Ascui

He suggested the the true cost of the cancelled event will never be known. Picture: NCA NewsWire / Luis Enrique Ascui

“But when you lay it out like that, it’s a very impactful decision, but it’s not a very difficult decision to make.

“In many ways it just makes sense to get on and close this out.”

Leader of the Opposition John Pesutto took to social media to share his outrage at the figure and accused the government of minimising the “true cost” of cancelling the event.

“Victorians will pay at least $380 million for an event that will never happen in a debacle that has damaged Victoria’s reputation internationally,” he wrote in a post to X, formerly known as Twitter.

“The true cost of this debacle will be significantly higher but we are likely to never know because the Andrews Government will do everything it can to stop Victorians finding out the truth.”

He reiterated previous claims that the government’s estimated costing of the event was inaccurate and overblown in an attempt to justify the cancellation.

The $380m bill will be paid to the three parties involved in the Commonwealth Games. Picture: NCA NewsWire / Luis Enrique Ascui

“It’s costings of the Commonwealth Games under Labor’s model are woefully inadequate and another exercise in cynical spin by the Andrews Government,” he said.

In a joint statement released on Saturday morning, the Commonwealth Games Federation, Commonwealth Games Australia and the State of Victoria confirmed that have all their disputes have been settled.

“In July 2023 the Victorian Government announced its decision to withdraw from hosting the 2026 Games,” a the statement said.

The parties are legally bound not to speak further on the details of the settlement. Picture: NCA NewsWire / Luis Enrique Ascui

“Following that decision, the affected parties have been involved in confidential good faith negotiations.”

“All parties engaged respectfully and made appropriate concessions in order to reach an agreement.”

The government will pay the $380 million sum to three parties including the Commonwealth Game Federation, Commonwealth Game Federation Partnerships and Commonwealth Games Australia.

The parties also agreed that the Andrews government decision to undertake a revamped “multi-hub” model that incorporated regional towns was “more expensive” than former Games models.

The terms of the settlement will otherwise remain confidential and the parties are legally bound not to speak further regarding the details of the settlement.