Victoria has scrapped plans to host the 2026 Commonwealth Games because of funding issues, the State Premier Daniel Andrews has announced.
Victoria 2026 staff were called into a meeting shortly after 9am today, just 30 minutes before Andrews publicly announced the news.
"We have informed Commonwealth Games authorities of our decision to seek to terminate the contract and to not conduct, not host the Games," Andrews told a hastily-arranged press conference in Melbourne.
The Commonwealth Games Federation (CGF) claimed that it had been given "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."
Andrews revealed that, with 973 days until the start of the Games, the original forecast budget for the event of AUD$2.6 billion (£1.3 billion/$1.7 billion/€1.5 billion) was now expected to be AUD$6 billion (£3.1 billion/$4 billion/€3.6 billion).
"I cannot stand here and say to you that I have any confidence that even AUD$7 billion number would appropriately and adequately fund these Games," Andrews said.
"[But] $6 to $7 billion (£3.6 billion/$4.8 billion/€4.2 billion) is well and truly too much for a 12-day sporting event.
"I will not take money out of hospitals and schools in order to fund an event that is three times the cost [which] is estimated and budgeted for last year.
"In terms of where we go to from here, the Games will not proceed in Victoria in 2026."
The Games were to be held three years from now between March 17 and March 29 in five regional Victoria centres in Geelong, Bendigo, Ballarat, Gippsland and Shepparton, with Melbourne staging the Opening Ceremony.
Victoria's debt is due to rise to AUD$135.4 billion (£70.6 billion/$92.3 billion/€82.1 billion) next year, reaching AUD$171.4 billion (£89.3 billion/$116.9 billion/€103.9 billion) for the financial year 2026-2027.
"This is hugely disappointing for the Commonwealth Sport Movement, for athletes around the Commonwealth and the Organising Committee who are well advanced in their planning and preparation," the CGF said in a statement.
"The reasons given are financial.
"The numbers quoted to us today of $6 billion are 50 per cent more than those advised to the Organising Committee Board at its meeting in June.
"These figures are attributed to price escalation primarily due to the unique regional delivery model that Victoria chose for these Games, and in particular relate to village and venue builds and transport infrastructure."
Andrews said the Victoria Government would still build the sporting facilities it had promised regional communities, such as the proposed upgrade to Ballarat’s stadium.
"We will instead deliver all and more of the legacy benefits in housing, sporting infrastructure, tourism, and we will unpack all that tomorrow and throughout the week and there will be further details of all of that as well as the process to deliver that," Andrews said.
There would also be a AUD$1 billion (£521 million/$1.4 billion/€889 million) boost for social and affordable housing, with up to 1,300 new homes built across regional Victoria, Andrews announced.
Victoria had been awarded the event by the Commonwealth Games Federation (CGF) in April 2022 following a bid process hampered by the lack of bidders and then the COVID-19 pandemic.
More than 5,000 athletes from 56 countries and territories were due to compete in 21 sports.
"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 CGF added in its statement.
"Up until this point, the Government had advised that sufficient funding was available to deliver the Victoria 2026 Commonwealth Games."
The State's Opposition Leader John Pesutto claimed the decision to scrap the Games was "a betrayal of regional Victoria".
"The Andrews Government’s decision to scrap the 2026 Commonwealth Games is a massive humiliation for Victoria," Pesutto said in a statement.
The Liberal leader claimed the cancellation was "hugely damaging" to the state’s reputation as a global events leader.
Pesutto added the "botched Games" would now leave a legacy of failure and missed opportunities for those communities.
This is the second consecutive Commonwealth Games where the original host has withdrawn.
Durban had been awarded the 2022 Commonwealth Games but was forced to pull out when it failed to meet a number of financial deadlines, with Birmingham stepping in five years before the event started.
There is now likely to be a search launched to find a new host with even less time to prepare.
Sydney and South Australia had both previously expressed an interest, while there had been talk of a bid from India or Malaysia.
Before Victoria were awarded the Games, there was speculation that Birmingham may be willing to host the event back-to-back.
That prospect may be even more appealing to England's second biggest city after the success of last year's Commonwealth Games.
"We are taking advice on the options available to us and remain committed to finding a solution for the Games in 2026 that is in the best interest of our athletes and the wider Commonwealth Sport Movement," the CGF said in its statement.
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2023-07-17 23:33:10Z
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