Deathly silence: Victorian leaders knew of cost over-run ‘months before’ Games dumped
Premier Jacinta Allan was told the 2026 regional Commonwealth Games would cost billions of dollars more than first thought months before cancelling the event.
Victorian Premier Daniel Andrews cuts a lonely figure as he departs from a press conference to announce he has cancelled the 2026 Commonwealth Games, slated to be held across Victoria. (AAP Image/James Ross)
Speaking at a parliamentary inquiry into Victoria’s Games bid on Monday, Department of Jobs, Skills, Industry and Regions secretary Tim Ada said Allan, who was then the minister for the Games delivery, was warned in early March of the cost blow-out.
Then in April the updated budget estimate of $4.5 billion was not approved, Ada told the inquiry.
It was announced in 2022 that multiple regional centres would host the games for a cost of $2.6 billion.
But the Games were canned on July 18 this year, with then-premier Daniel Andrews saying the event would cost up to $7 billion.
Ada told the inquiry on Monday his department again provided a cost submission to Allan in June seeking $4.2 billion, but the submission was not formally considered by the government for weeks and was rejected on July 14.
“I understood that for some weeks before the decision was made to not proceed with the Games, the government was considering all available options in the context of increased budget requirements,” Ada said.
“I understood that this included (the Department of Premier of Cabinet) seeking legal advice on options.”
He found out about the legal advice being sought around June 19.
Allan has repeatedly said the revised cost estimate of between $6 billion and $7 billion materialised in the weeks leading up to the cancellation.
Former chair of the now-defunct 2026 Games organising committee Peggy O’Neal and its ex-chief executive Jeroen Weimar are among the first officials listed to appear at the inquiry on Monday afternoon.
In a submission to the inquiry last week, the organising committee said it became clear its share of the event’s initial $2.6 billion budget was insufficient.
The committee subsequently asked the Victorian government for a $722 million boost to its original $1 billion budget on February 22.
O’Neal later wrote to Allan, who has since replaced Daniel Andrews as state premier, on April 4 highlighting “the critical timelines for decision making”.
No extra funding for the sports event was outlined in the budget.
Other officials scheduled to front the inquiry on Monday include Department of Premier and Cabinet secretary Jeremi Moule and former chief executive of the government’s dedicated Games office Allen Garner.
An interim report is due to be handed to parliament by the end of April 2024 and a final report 12 months later.
