2026 Commonwealth Games in Victoria cancelled in $6 billion bombshell
Regional Victoria was set to host the Commonwealth Games in 2026, but Daniel Andrews has been forced to scrap the event.
Victoria Premier Daniel Andrews has been forced to cancel hosting the 2026 Commonwealth Games due to funding issues, which was set to take place in regional areas around the state. Victoria won the rights to host the event last year, with Andrews saying at the time that it would "be the Regional Victoria Games”.
However funding issues have forced the state's government to scrap hosting the Games entirely. The intention was to establish Games hubs in Geelong, Bendigo, Ballarat and Gippsland, with each area containing an athlete’s village and sporting facilities.
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Andrews announced the shock news on Tuesday, revealing the Games would have actually cost between $6-7 billion, rather than the original $2.6 billion that was budgeted. The Premier said it was an easy decision considering the funds could be better used on hospitals and schools around the state.
“I’ve made a lot of difficult calls, a lot of very difficult decisions in this job,” Andrews said. “This is not one of them. Frankly, $6 billion (or) $7 billion for a sporting event, we are not doing that. That does not represent value for money, that is all cost and no benefit.”
Commonwealth Games in regional Victoria cancelled
The expenditure of what was estimated to be $2.6 billion on the Games was expected to create thousands of jobs, including 3900 during the event and 3000 afterwards. However local mayors reportedly objected to the huge costs associated with creating the necessary infrastructure.
Treasurer Tim Pallas had been seeking a dollar-for-dollar matching contribution from the federal government, while Mr Andrews had repeatedly said the government wasn't interested in a re-run of the 2006 Games in Melbourne.
Andrews said last year that the announcement that regional Victoria would host the 12-day event was a “great vote of confidence in regional Victoria”. He said: “It’s a showcase of all that we do so well. It’s about jobs. It’s about setting our state up for the future. We know that when regional Victoria is doing well, Victoria is doing well.” It marked the first time the Commonwealth Games had been awarded to a state or region in its 92-year history, rather than a specific city.
While Victoria will no longer host the Games, the infrastructure from them will still be built. Mr Andrews said there will be $1 billion spent on more than 1300 new social and affordable housing homes across regional areas, $150 million will be spent on tourism and events, and all of the permanent and upgraded sporting facilities planned will still go ahead.
"Each and every one of the permanent sporting facilities that were to be legacy benefits from the Games will be built,” Mr Andrews said. “There is a very substantial regional tourism fund and a substantial package of support for community-based sport and perhaps most importantly they will be a $1 billion boost for social and affordable housing right across regional Victoria and not just in those hub cities but they will be at least 1300 new homes constructed across regional Victoria.
“This represents a massive boost and a direct response to what is perhaps the biggest challenge across regional Victoria and indeed across our state and that is the supply of housing and the number of housing options that Victorians have before them. That is in many respects the biggest and best lasting legacy that we can leave, somewhere to live and a market that has more supply for those who need it.”
The Commonwealth Games should be scrapped full stop - but until they are, state governments saying no and diverting that funding to their populations – especially in a housing and cost of living crisis – is the only moral answer
— Amy Remeikis (@AmyRemeikis) July 18, 2023
Regional Victoria became the only bidder for the Games after Durban in South Africa lost the 2022 event. Birmingham was the original host city for 2026, but had to step in for last year's event.
Meetings were held with Commonwealth Games leadership in London on Monday night (Australian time) and will continue through Tuesday. “We have informed Commonwealth Games authorities of our decision to seek to terminate the contract and to not conduct, not host the Games," Andrews said. "Meetings occurred amicable and productive meetings occurred in London last night and they will again continue London time later on today."
with AAP
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