Victorians face $2b fine for breaking Dan’s Commonwealth Games contract

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Will the Commonwealth Games fiasco be the scandal that finally sinks ‘Teflon’ Dan Andrews?

The Commonwealth Games are a joke event. Almost nobody in Victoria cared or wanted the state to host the Games in 2026 – only 20 years after hosting them last time.

The decision to host the Games was entirely the thought bubble of the Victorian Government, and leader Dan Andrews.

A 30-page report, completed in September 2019, has been obtained by The Australian.

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The report was co-funded by the Andrews Government and regional councils as part of a council-led taskforce pushing for a regional Commonwealth Games initially in 2030, but later focused on 2034.

The Taskforce did not seriously contemplate a 2026 bid.

A source has indicated that the taskforce was blindsided by the Andrews Government announcing Victoria would host a ­regional Games in 2026.

It held the view that a much longer lead-in time would reduce the risks of a cost blowout.

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The source adds that the decision to host the Games in 2026 had been a pure political ploy:

“It was our surprise when ’26 got announced as a regional Games because none of us were consulted on that. We had no contact – no idea”

“We thought this is going to be ambitious to try and get it up. But it was clearly a political ploy at the time.

“(Andrews) was under pressure over a range of things in the lead-up to an election and it was to our great surprise that it was announced as a 2026 option”.

“We championed the idea of a regional Games, we were aiming for 2034, not 26, for obvious reasons. We were looking longer term”.

“We did this pre-feasibility to check the assets, to see what was available. The idea was to do this feasibility to understand where governments were already spending money … so it wasn’t to build new stadiums, and build new ­facilities”.

“It was to improve projects that were already in play up to 2034 … that were in construction or had funding allocated”.

“The whole premise was to try and mitigate this whole cost fiasco by tapping into the existing pipeline of developments”.

Meanwhile, lawyers and the Opposition have warned that taxpayers could face costs of up to $2 billion for breaking its contract to host the Games in 2026.

As usual, Teflon Dan is unrepentant for placing Victorians in this position:

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“I am sorry that we find ourselves here. I’m sorry that we are in this position. But I’m not going to apologise for not taking money out of hospitals and schools – but the easier thing to do is to push on. You’re asking me to apologise for cancelling the Games, but I’m not going to do that”.

The fact remains that this bungle is 100% the fault of Teflon Dan Andrews.

He made the captain’s call to host the Games in 2026 in regional Victoria.

Victoria could have instead hosted the Games at a reasonable cost by using existing sports facilities across Melbourne and some regional areas, but Teflon Dan bungled it by pursuing votes in regional areas.

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After a litany of infrastructure blowouts and rorts, corruption scandals, the Covid quarantine bungles and the world’s longest lockdowns, what more will it take for Teflon Dan to be held accountable?

The saddest thing is that Victorians have to put up with this government until 2026. We will be a failed bankrupt state by then.

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.