Dan Andrews announced the controversial decision to cancel the Commonwealth Games, which were to be held across regional Victoria in 2026. Image credit: Stephenk1977, via Flickr.
Victorian Premier Dan Andrews announced the controversial decision on Tuesday to cancel the Commonwealth Games, which were to be held across regional Victoria in 2026.
Andrews said the decision was made after the estimated cost of hosting the event had skyrocketed from an initial $2.6bn to “at least $6bn and could be as high as $7bn.”
“What’s become clear is that the cost of hosting these Games in 2026 is not the $2.6 billion which was budgeted and allocated,” said Andrews.
“I will not take money out of hospitals and schools to host an event that is three times the cost estimated and budgeted for last year.”
Andrews said that the $2bn of the funding allocated for the games would be redirected to regional housing and sporting infrastructure in regional Victoria.
This includes $1bn allocated to a Regional Housing Fund with intent to build 1,300 new homes across regional Victoria.
The controversial decision has been heavily criticised by the Commonwealth Games Federation (CGF), who said they were only given eight hours’ notice of the cancellation.
“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 CGF and Commonwealth Games Australia (CGA),” said the CGF in the statement.
“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.
“Up until this point, the government had advised that sufficient funding was available to deliver the Victoria 2026 Commonwealth Games.”
Craig Phillips, chief executive of Commonwealth Games Australia, said he was not warned of the new budget estimates and said that the figures were exaggerated.
“The stated costs overrun, in our opinion, are a gross exaggeration and not reflective of the operational costs presented to the Victoria 2026 Organising Committee board as recently as June,” said Phillips.
The 2026 Games were acquired by Victoria, filling the vacancy left after Birmingham was moved ahead to 2022 to replace Durban as that year’s host.
All other Australian states and territories have declined to take over Victoria’s role in hosting the games.
When asked about the decision, Prime Minister Anthony Albanese said the decision was “made by the Victorian government” and that he would “leave the Victorian government to go through those details.”
He also said he was “focused on a sporting event that will happen in two days’ time” and expressed his enthusiasm for supporting the Matildas in the upcoming FIFA Women’s World Cup.
