Chapter 3Impacts of the cancellation on rural and regional communities and sport

Plans for the Commonwealth Games prior to cancellation

3.1In its initial announcement confirming it would host the Commonwealth Games in 2026, the Victorian Government outlined a ‘new multi-city model’ for the event, spread across ‘four regional hubs’ each with its own Games village. The model would be complemented by the use of the Melbourne Cricket Ground for the Opening Ceremony. In terms of estimated economic benefits, it cited:

more than $3 billion to Victoria’s economy, creating;

• more than 600 full-time equivalent jobs before the event;
• 3900 jobs during the event; and
• a further 3000 jobs after the event.[1]

2. The 2022–23 Victorian State Budget was released on 3 May 2022. It outlined the Victorian Government’s investment of $2.6 billion in the Games to ‘run the games and build and upgrade sporting venues, accommodation and supporting infrastructure’.[2]Table 3.1 shows profiling of this funding across the forward estimates.

Source: State of Victoria, Service Delivery: Budget Paper No. 3 2022–23, p. 73. *Note: Includes intended contributions from the Commonwealth Government and Local Governments, and potential commercial revenues. Additional funding of $51.527 million in 2026–27 is beyond the forward estimates.

3.3The Secretary of the Victorian Department of Jobs, Skills, Industry and Regions elaborated on the Victorian Government’s plan in correspondence to the committee. The 16 May 2023 letter advised the Games would include:

20 sports across 26 disciplines, including nine para-sports;

hubs in Geelong, Ballarat, Bendigo, Gippsland and Shepparton; and

an approximate 300 000 visitors from outside the host cities (more than 100000 in Geelong and Ballarat, 50 000 in Bendigo, and 25 000 in Gippsland).

3.4The letter also summarised the projected employment estimates as ‘more than 7500 jobs’ across the period of the Games.[3]

3.5At the fourth public hearing, Commonwealth officials confirmed that the Victorian Government had sought a contribution of $1.3 billion from the Australian Government in a letter sent in March 2023 to the Minister for Infrastructure.[4] This amount is approximately half of the $2.6 billion in funding announced by the Victorian Government in May 2022.

3.6The committee heard from Mr Neil Fergus, Chief Executive Officer of Intelligent Risks Pty Ltd, a security firm involved in preparations for the 2026 Commonwealth Games. Mr Fergus expressed concerns about the state’s readiness in relation to the unique security challenges of hosting a regional Games:

I expressed concerns right from the outset that, while supporting an original model, it needed to be anchored in a couple of existing venues not only to reduce costs but also to increase revenues from tickets. … One of the key points I made … is that you need to proceed early to do resource estimates. You will need military aid. … That obviously requires very close engagement with the federal government, one of the reasons I was urging engagement with the federal government by the security task force.[5]

Sports and para sports program

3.7On 5 October 2022, the Victorian Government, the Commonwealth Games Federation and Commonwealth Games Australia announced the finalised sport program for the Games. Table 3.2 shows which sports and disciplines were to be hosted in each regional hub.

Source: Victorian Government,Victoria 2026 Commonwealth Games Sports Program, May 31 2023 (accessed on 31 August 2023 via the Internet Archive).

Venue and infrastructure updates

3.8Between 3 May 2022, the day of the 2022–23 Victorian State Budget, and 9May2023, the Victorian Government issued at least 27 media releases providing updates on the Commonwealth Games, or around once a fortnight on average. Many of these press releases included updates on facilities and infrastructure works. For example:

7 July 2022: confirmation Bendigo Bowls Club would host lawn bowls, and Bendigo Stadium would host netball;

25 August 2022: a $2.7 million investment over four years in Traditional Owner Corporations across the regional hubs;

6 September 2022: the opening of a $23.5 million culinary school in Geelong to ‘help create a pipeline of hospitality workers for the region ahead of the Games‘;

12 October 2022: a $150 million upgrade to Eureka Stadium in Ballarat, adding 5000 permanent seats, 18 000 temporary seats and a competition standard track, and a $50 million upgrade to Ballarat’s historic train station; and

29 March 2023: up to $292 million on multi-sport venues in and around Armstrong Creek and Waurn Ponds.[6]

3.9Before the cancellation, some submitters observed that the infrastructure legacy of previous Commonwealth Games was not beneficial for their sport or discipline. Athletics Australia said that ‘the past two iterations of the Commonwealth Games have provided no infrastructure legacy to Athletics’. In fact, according to Athletics Australia, athletics warm-up tracks for both the Melbourne 2006 and Gold Coast 2018 Commonwealth Games, and the main competition track for the latter, were removed in favour of facilities for the Australian Football League (AFL), and it asserted 2026 legacy plans were ‘focussed on legacy for AFL’.[7]

Accommodation

3.10A media release on 1 February 2023 stated that the Games villages would accommodate ‘around 7000 athletes and officials’.[8] Separate releases advised that the Morwell village would host around 1000 and the Bendigo village would host around 1600.[9]

3.11In its submission prior to the cancellation, the Victorian Public Tenants Association (VPTA) highlighted the importance of accommodation as a Commonwealth Games legacy. It said that ‘positive housing outcomes are not assured’ based on previous major sporting events and offered the following statistics and recommendations to underline the need and demand for housing:

a 75 per cent increase in demand for VPTA’s advice and assistance regarding social housing in 2022;

a waitlist of over 100 000 individual Victorians;

at least 60 000 new social housing properties needed by 2032; and

its recommendation that, at a minimum, 30 per cent of athlete housing be converted to social housing, with 10 per cent to be for Indigenous housing.[10]

The role of public funding in Games results

3.12Several National Sporting Organisations (NSOs) emphasised the importance of public funding to success in both the Commonwealth and Olympic and Paralympic Games. This was frequently characterised in terms of direct funding to NSOs, not just in facilities and infrastructure.

3.13For example, Commonwealth Games Australia (CGA)’s submission cited a ‘$2billion shortfall’ in Australian Government investment in NSOs (or around $200 million annually) through to FY32, a figure also referenced in the 2023–24 Pre-Budget Submissions from both CGA and the Australian Olympic Committee.[11] CGA argued that despite Australia’s strong performance at Birmingham, the ‘demonstrated decline’ in Australian Government funding meant that it was an open question whether there could be similarly strong results in 2026 and 2032.[12]

3.14Many NSOs referred to or endorsed CGA and the AOC’s request for an increase to Australian Government funding in their own submissions, including Athletics Australia, Swimming Australia, Water Polo Australia, Diving Australia, Triathlon Australia, AusCycling and in the NSO Joint Submission.[13] Rugby Australia separately noted the ‘dilemma’ of funding the ‘heavy costs’ of competition and ‘pathways investment’, with the former often being prioritised over the latter.[14]

3.15Some NSOs cited specific funding figures which were needed, or figures were provided in the past, connecting these with performance. For instance, noting ‘significant cost challenges on the path to Paris 2024 and beyond to VIC2026’, Swimming Australia said it had identified a $2million funding shortfall. The NSO Joint Submission summarised the dynamic between funding and Games performance, asserting that hosting success was dependent on team success, and used Sydney 2000 and Gold Coast 2018 as examples:

The Australian Government funding programs played a pivotal role in Australia's most successful Summer Olympics and Paralympics to date. In addition to Australia's high medal count – 4th on the Olympic medal table with 58 medals across 20 sports, including 16 gold, and 1st on the Paralympic medal table with 149 medals across 10 sports, including 63 gold – these programs significantly professionalized high-performance sport.

An important lesson from Sydney 2000 is the post Games environment where there was a post Games depression in sport funding, including sports redirecting funds from their development programs in pathways to high performance closer to the Games. There was also mass shedding post Games of highly qualified people across the system leading to an international exodus of talent with significant negative impacts on many NSOs.

Consistent with the accepted dynamic that successful home-Games are largely dependent upon the success of the host-nation’s team, the Federal Government provided an additional $15 million to the ASC in the FY17/18 Budget to support athletes ahead of the 2018 Gold Coast Commonwealth Games. This led to the largest ever Australian team with the best ever performance.[15]

Alternative rural and regional funding package after the cancellation

3.16As outlined in Chapters 1 and 2, the Victorian Government cancelled the 2026 Commonwealth Games on 18 July 2023. It stated that it had decided to cancel the Games on the basis that with ‘significant planning work and extensive market soundings completed… the cost of hosting the Regional Victorian Commonwealth Games will exceed $6 billion’.[16] The Victorian Government compared this figure to its original estimated economic benefit of more than $3billion announced on 12 April 2022. The Premier of Victoria later stated Victoria would not spend ‘$6-7 billion’ running the event.[17]

3.17On the same day it cancelled the Games, the Victorian Government announced its $2 billion alternative funding package for rural and regional Victoria. Table 3.3 shows the change in hosting costs or estimated economic benefits, the funding packages announced by the Victorian Government, and the compensation.

Source: The Hon Daniel Andrews MP, Premier of Victoria, ‘Regional Victoria Hosting 2026 Commonwealth Games’, Media Release, 12 April 2022; The Hon Daniel Andrews MP, Premier of Victoria, ‘Commonwealth Games Costs Too High At Over $6 Billion’, Media Release, 18 July 2023; State of Victoria, Strategy and Outlook: Budget Paper No. 2 2022–23, p. 13; State Government of Victoria, Commonwealth Games Federation, Commonwealth Games Federation Partnerships and Commonwealth Games Australia, ‘Joint Statement on Victoria 2026 Commonwealth Games’, Media Release, 19 August 2023; Chip Le Grand and Patrick Hatch, ‘How Victoria’s three-city Commonwealth Games plan ran out of control’, The Age, 30 July 2023 (accessed 4 September 2023); Elias Clure and Lucy Kent, ‘Plan to host cheaper Commonwealth Games ignored by Victorian government’, ABC News, 27 July 2023 (accessed 4 September 2023).

3.18As part of this package, the Victorian Government confirmed that ‘every one of the permanent new and upgraded sporting infrastructure projects planned… will still proceed’, and that local councils will not be expected to contribute to the package.[18] It also issued five separate press releases outlining what each of the hubs, and regional Victoria overall, will receive from this package, as summarised in Table 3.4.

Source: The Hon Daniel Andrews MP, Premier of Victoria, ‘Commonwealth Games Costs Too High At Over $6 Billion’, ‘More Homes As Well As Sports Upgrades In Geelong’, ‘Upgrades For Ballarat Sporting Venues Confirmed’, ‘More Homes As Well As Sports Upgrades in Bendigo’, ‘More Homes With Sports Upgrades in Gippsland', ‘Sports Upgrades For Shepparton Confirmed’, Media Releases, 18 July 2023.

3.19As mentioned in Chapter 1, the State of Victoria and the Commonwealth Games parties announced a $380 million settlement on 19 August 2023, which, at the time of this interim report, was the most recent update from the Victorian Government.

3.20The shifts in costs have received considerable commentary since the cancellation. In relation to the business case to which it contributed, MrDeanYates, partner at Ernst and Young (EY), said that the partners ‘stand behind the work’ that the advice to the Victorian Government was ‘accurate and robust’, and that EY was ‘very comfortable with the accuracy of the estimates.’[19]

3.21EY declined to answer at the hearing what economic factors may have driven the increase between the $2.6 billion initial cost and the $6 billion to $7billion figure cited in the cancellation announcement, and took the question on notice instead.[20]

Impact of the cancellation on regional and rural communities and sport

3.22Reaction to the cancellation was immediate. On the day of the cancellation, CGA described the decision in the following terms:

The announcement made by the Victorian Government today is beyond disappointing. It’s a comprehensive let down for the athletes, the excited host communities, First Nations Australians who were at the heart of the Games, and the millions of fans that would have embraced a sixth home Games in Australia….

The multi-city model for delivering Victoria 2026 was an approach proposed by the Victorian Government, in accordance with strategic roadmap of the Commonwealth Games Federation (CGF). It was pitched to the CGF after Commonwealth Games Australia (CGA) had sought interest to host the Games from several states. They did not step in as hosts at the last minute, as indicated by the Premier earlier today…The detailed budgetary implications announced today have not been sighted or discussed with the CGF or CGA ahead of being notified of the Government’s decision. 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…

The Victorian Government, however, has jeopardised Melbourne and Victoria’s standing as a sporting capital of the world.[21]

3.23The Commonwealth Games Federation, the international governing body for the Commonwealth Games, also responded to the decision by questioning the claimed increase in costs:

The reasons given are financial. The numbers quoted to us today of $6 billion are 50% 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.

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 (CGF) and Commonwealth Games Australia (CGA).

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.

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.[22]

Paralympic classification

3.24Witnesses at the first public hearing described the cancellation’s impact in similarly broad terms as CGA, suggesting Commonwealth Games athletes, communities and finances would all be impacted. Ms Catherine Clark, Chief Executive Officer of Paralympics Australia (PA), said the cancellation would impact ‘on our preparation from a classification and talent ID perspective, a societal perspective and a financial perspective.’ In addition to being a sporting competition in its own right, she also portrayed the 2026 Games as a key element of preparation for the Olympics and Paralympics, saying that ‘before 2032 we need to have international standard events for para classification which are hosted here in Australia. We already need support from state and federal governments to have these events, and the cancellation of a domestic Commonwealth Games means that we need them even more now’.[23]

3.25Mr John O’Callaghan, President of PA, said ‘the impact is beyond’ what has been characterised as ‘a 12-day event’ because of the need to prepare for 2032, and noted the Commonwealth Games is ‘the world’s largest sporting event for integrated sporting teams of able and athletes with a disability’. Mr O’Callaghan explained the classification issue further:

Classification is your enabler in Paralympic sport, globally. Without having a classification, you can't get to the starting line. Classification is more fundamental to Paralympic sport than a pool is to a swimmer. In every sport, you can't get beyond grassroots levels until you've had a classification and, in some instances, had that classification reviewed and confirmed. Until then, you can't compete internationally. Realistically, particularly for a lot of our sports that are small and underresourced, it is prohibitive, almost impossible, to fund athletes to go overseas and get classified. So having a home Commonwealth Games or other multisport events here with classification opportunities and with international classifiers coming here, instead of us going there, means we have a concentrated opportunity to get many athletes or potential athletes through that process.[24]

3.26In response to questioning, Mr O’Callaghan said it was ‘potentially’ the case that the cancellation disadvantaged Paralympics athletes more than any other government decision, and Ms Clark endorsed any solution that would allow the Commonwealth Games to be hosted in Australia.[25]

3.27The strength of Australian swimmers in paralympic events was noted by Swimming Australia in its submission. At the 2022 Birmingham Commonwealth Games, it noted Australian swimmers won 65 medals, or 37percent of the Australian team total.[26]

3.28After noting that the 2022 Birmingham Commonwealth Games was its ‘best away Games ever’, representatives from Diving Australia said its athletes were ‘crushed’ at the cancellation of the 2026 Games. Ms Elizabeth Jack, Chair of Diving Australia, said that, while ‘there are some who would say that’ the Commonwealth Games is ‘not as important as the Olympic Games, it does play a very important role in an athlete’s preparation over the four-year cycle’, including for younger athletes who may not have been at previous Olympic Games.[27]

Legacy and related impacts

3.29A number of submissions and witnesses mentioned the concept of ‘legacy’, or the facilities, infrastructure, results and other benefits that are left behind for sports and host communities after the conclusion of the Games. In its submission before the cancellation, CGA listed the legacy benefits of past Commonwealth Games, including:

sporting infrastructure;

public domain and transport infrastructure;

various kinds of housing;

economic activity;

skills training and jobs;

trade and investment opportunities; and

tourism boosts.[28]

3.30From the most recent Australian Commonwealth Games, the 2018 Gold Coast Games, CGA quantified a further set of estimated legacy benefits, including a contribution of billions to Queensland’s Gross State Product, billions in contracts awarded to Queensland businesses, tens of thousands of full-time equivalent jobs, and thousands of apartments and townhouses built to rent.[29]

3.31CGA accordingly suggested Victoria 2026 was shaping up to provide Australia a ‘generational gift to make a real difference in transforming our nation for the better – a generational legacy.’[30]

3.32The National Sporting Organisations Joint Submission suggested that legacy was the most important factor in Games preparation:

For both Brisbane 2032 and VIC2026, the primary focus of the government at all levels, as well as the AOC and CGA, is legacy impact. Sport, along with its stakeholders, plays a pivotal role as a delivery mechanism for many of these legacy outcomes, which benefit all Australians. These outcomes include promoting health, education, sustainability, and community engagement. They are integral to the government's overarching agenda to ensure that hosting the Games brings long-lasting benefits to the Australian population.[31]

3.33At the second public hearing, Mr Craig Phillips AM, Chief Executive Officer of CGA, spoke about both sporting venues and housing being legacy considerations, including relocating houses to other places of need as part of legacy matters. He said that CGA was ‘excited about what the games were going to deliver as a legacy and also some of the upgrades and new-build facilities that were going to be made available to regional communities.’[32]

3.34Local governments concurred with the notion that the Games would provide needed social and economic boosts for the regions. When asked what legacy benefits his area was hoping to gain from the Games, Councillor Michael Whelan, Mayor of Bass Coast Shire Council, said that in part it was the ‘obvious income input into Bass Coast.’ Moreover, he said that while they were ‘recovering from the COVID shock’, international visitors hadn’t yet returned, and the Games was correspondingly an ‘opportunity to put our name, our brand, out to the world’, beyond just economic benefits.[33]

3.35Groups based in Geelong, one of the five intended regional hubs for the Games, spoke in favour of a strong Games legacy at the second public hearing. A representative of the Geelong Region Alliance, which also takes in Ballarat, suggested that legacy considerations had not been made defunct by the cancellation of the Games, tying the issue into concurrent social and economic pressures that the regions face:

We are interested in the legacy aspect of the cancellation of the games and in what is going to happen going forward. We want to see projects and other things stapled to the forward estimates and delivered within a sharp time line. We were banking on the Commonwealth Games deadline for delivery of a number of things. We have significant housing and transport pressures in the region, which create a big issue around our skills base. As a hugely growing region—growing as fast as south-east Queensland—there is a lot of opportunity but, as you would appreciate, there is also a lot of need. We want to make sure that there is a good strong outcome out the back of this.[34]

3.36This argument that that legacy applied equally to the cancellation was echoed by the Committee for Geelong, an advocacy organisation, which spoke of a ‘pivot’ towards the alternative regional and rural funding package:

We are a pivot city, for a reason. We have now pivoted quickly into focusing on ensuring that we maximise the infrastructure promised by the state government. From a Committee of Geelong perspective, our focus has been on ensuring that infrastructure is delivered in a timely manner in line with what is being promised—to the full specifications and sourcing local procurement, which is a big component of what was put on the table by the state government. Local industry and local suppliers were to be used in the provision of goods and services for the delivery of the games. We are adamant that must be continued throughout the process and into the grant funding accompanying the legacy piece.[35]

3.37Representatives of both groups confirmed that they had not yet spoken with the Victorian Government as at 28 August 2023 about what proportion of the $2billion package will be allocated to Geelong, with a meeting scheduled for 7September 2023 between groups and the Victorian Minister for Regional Development.[36] The outcomes of this meeting were not available at the time of writing this report.

3.38Though he had provided evidence about the Victorian Government’s lack of engagement so far, Councillor Trent Sullivan, Mayor of the City of Greater Geelong, also reiterated his council’s readiness and willingness ‘to be involved’ in the implementation of legacy projects following the cancellation.[37]

3.39In contrast to post-cancellation legacy projects on housing and infrastructure, it was not clear what legacy the sports themselves will receive. Miss Lisa Hasker, Chief Executive Officer of VicSport, summarised the long lead-up required for effective legacy outcomes for sporting codes and disciplines:

We liaise very closely with Sport and Recreation Victoria and also with the Sports Commission. Probably a little while out, a year out, from the announcement we started talking to those groups about legacy for community sport, gathering the groups together and talking about what the sports, at state sporting organisation level, see as a legacy and how they could be involved, because often, for a lot of those legacy items, particularly around events and introducing people to new sports, you need the state sporting organisation and clubs involved in showcasing of different sports and those activities. So probably about a year out we started talking about the legacy side of things, which would be where we had most input.[38]

3.40On the cancellation’s legacy impact, Ms Hasker stated the ‘conversations with all sport in Victoria about… legacy outcomes from the games before, during and after’ have been ‘wiped away’ as a result.[39]

3.41In addition to impacting Victorian regional communities, Mr Phillips highlighted broader regional impacts, including for neighbouring Pacific countries:

I would also add that the importance of a games here in Australia to our near neighbours cannot be overstated. We know our friends in the Pacific were looking forward to a games here in Australia, for themselves and for their athletes, just as they're looking forward to Brisbane for themselves and their athletes. They're great opportunities for the Pacific, our near neighbours, who we enjoy relationships with. We know—we’ve been in recent discussions—that a games here in Australia is important for them.[40]

3.42Noting the important role played by sport in Australia’s diplomatic relations across the region, Mr Phillips argued that the Australian Government has a ‘critically important’ role to play in assisting the CGA to work with state governments to secure a host:

We think the federal government also has a role here of using the games with its commitment around sport diplomacy. I’ve mentioned the Pacific; you’ll see the importance of the Pacific in that regard. We’re forging new relationships with India, the largest Commonwealth nation of all. We see the games playing a role in those trade and strategic relationships we're forging with India and, of course, one of our oldest trading partners, in the UK.[41]

Alternative hosting arrangements

3.43Councillor Tom Tate, Mayor of the City of Gold Coast, which hosted the most recent Australian Commonwealth Games, asserted that the Victorian Government ‘obviously… weren’t that well prepared’, and that there would be ‘reputational damage’ in addition to the $380 million settlement.[42]

3.44Mayor Tate said one alternative approach would be a multi-city event, and the City of Gold Coast was ‘happy to help whoever wants to host it’, including contributing Gold Coast facilities. Mayor Tate agreed the hosting, costing and funding arrangements could be discussed in a potential roundtable of multiple levels of government. Another approach could be for the Gold Coast to host the Commonwealth Games using the 2018 Games infrastructure, with Australian Government funding; the ‘key fact’ being ‘not to burden state government’. Hosting would entail ‘minimal risk’ because the existing set of facilities could be used.[43]

3.45Mr Phillips confirmed that he had had a ‘preliminary discussion’ with MayorTate and the City of Gold Coast on possible alternative hosting arrangements.[44] He later acknowledged that ‘it may be a scaled back version of the games, given the time we have’, and explained that CGA is ‘working towards developing a model’ that can work for the 2026 games, given the short time frame:

That work’s in frame right now. All of that is a key factor in us then having conversations with potential future hosts, whether it’s in Australia or overseas. … we don’t want to rush to a no. We do need to make sure we are ready before we start having conversations with governments. We have to make sure our case is right, and where we are now is that it is not right.[45]

3.46Mr Houston added that CGA is ‘committed’ to finding a host, ‘hopefully in Australia’, for the 2026 Commonwealth Games. This will involve getting agreement from the CGF on the form and structure of the event, ‘then we will be able to develop a proposal and take that to prospective state governments and hosts’.[46]

3.47Asked if it had met with any state premiers or Mayors since the cancellation, in relation to alternative hosting options, CGA said ‘no’.[47]

3.48Committee members were concerned there was no sense of urgency from the Commonwealth Government in seeking to ‘save’ the Games. Commonwealth officials were questioned about whether or not they had met with CGA to discuss the impacts of the cancellation, and possible host alternatives; and CGA was asked if it had met with officials from the Department of Health and Aged Care. While CGA responded ‘no’ to this question, MrBlairExell, Deputy Secretary, Health Strategy, First Nations and Sport, Department of Health and Aged Care, responded that he had met with CGA on 26 July, where he had a 10to 15 minute discussion on the matter. However, MrExell was clear that this was not a formal meeting: ‘There has been no formal request for an update by us, but neither have they sought out one from us. But I acknowledge that we haven’t reached out’.[48]

3.49Asked if the department had provided a briefing to the minister on the implications of the cancellation, Mr Exell said they had not:

We have discussed it on a number of occasions. The information was clear. The decision by the Victorian government—we did not consider there was a need beyond the discussions that had occurred to provide a formal brief.[49]

3.50On notice, the department clarified that it had ‘provided information to the Minister on the Victorian Government’s decision to withdraw from hosting the 2026 Commonwealth Games on 18 July 2023’—the day of the Premier’s announcement. It had also ‘provided an update to the Minister’s office that week as part of normal briefings’.[50]

3.51The Sports Commission was similarly asked what briefings it had provided to the minister. Ms Brooke De Landre, Chief of Staff, Australian Sports Commission, took the question on notice.[51]

Committee view

3.52The committee agrees with the evidence received to date demonstrating the significant socioeconomic and cultural impact the cancellation of the Commonwealth Games will have. Notwithstanding the Victorian Government’s alternative funding package, it is clear that the cancellation has thrown into doubt the delivery, or timeframe and scope of delivery, of needed sporting infrastructure, transport, and housing upgrades; the planned boosts to participation in elite and community sport; and the boost to economic activity and growth before, during and after the Games.

3.53As rural and regional communities recover from the COVID-19 pandemic, and manage challenges including affordable housing and cost of living concerns, the awarding of the Games was an opportunity for these communities to plan for, and look forward to, a future sporting and business event. This opportunity has been summarily taken away the same way it came about—with no consultation and no certainty.

3.54The impact has been compounded by the Victorian Government’s refusal to cooperate with the inquiry, limiting the committee’s ability to gather and consider evidence with respect to Games costings, stakeholder engagement and decision-making processes. The ramifications from the cancellation will outlast this inquiry and the 47th Parliament. Whether they are located in Victoria, Australia or overseas, councils, community groups, businesses and others that engage with the Victorian Government on major events must now prepare contingency arrangements in each instance.

3.55Though the decisions to bid for and cancel the Games were those of the Victorian Government, the committee rejects the assertion that the Senate has no competency to investigate these issues, or that state-run investigations are preferable. The Victorian Government’s own draft business case outlined its expectation of an Australian Government contribution of at least $205 million for capital expenditure. Further, in its 2022–23 Budget, the Victorian Government added a note below its $2.6 billion package for the Games that it ‘includes intended contributions from the Commonwealth Government and Local Governments’.[52]

3.56As previously noted, the Victorian Government wrote to the Australian Government seeking $1.3billion for the Commonwealth Games—half of the original funding package. This suggests that the Victorian Government expected, and was prepared to accept, funding for which the Senate would have oversight, but would not accept scrutiny of its decisions by the Senate.[53]

3.57Further, this investigation has already placed on the public record the dismay and distress of many stakeholders at the cancellation, which may not have otherwise been aired. The passion and enthusiasm these stakeholders also feel for the Games, its athletes and staff, and sport generally has also been made clear.

3.58Similarly, the committee rejects the assertion that the Australian Government has no role or responsibility to play in mitigating the damage of the cancellation, and salvaging the Games. The international implications of this decision are relevant. When it comes to preserving Australia’s international reputation, the committee notes the Australian Government has already intervened in recent years—to cancel Victoria’s ‘Belt and Road’ agreement with the People’s Republic of China following passage of the Australia's Foreign Relations (State and Territory Arrangements) Act2020. In addition, the Australian Government retains power over visa issuance and major event security, which are key enablers for any successful international sporting event.

3.59The committee notes Australian Government contributions to bids and infrastructure for, and oversight of, recent international sport events, including:

$1.0 million in the Mid-Year Economic and Fiscal Outlook 2017–18 and $4.0 million in Budget 2018–19 to support Australia’s bid for the 2023 FIFA Women’s World Cup, and $44.8 million in Budget October 2022–23 towards the event;[54]

funding not published for the Rugby World Cups in 2027 and 2029; and

$10.0 million in Budget 2021–22 to support Queensland’s bid for the 2032 Olympic and Paralympic Games, $24.7 million in Budget October 2022–23 for Olympics and Paralympics departmental resourcing, and $3.4 billion over 10 years in Budget 2023–24 for venue infrastructure.[55]

3.60The Department of Health and Aged Care’s 2023–24 Portfolio Budget Statements also listed the 2026 Commonwealth Games in its planned performance result for the forward estimates, alongside other major international sporting events,[56] and departmental officials at Senate Estimates confirmed their engagement and work with Victoria prior to the cancellation.[57]

3.61These financial and policy contributions to the hosting of international sporting events have continued across changes of government. The committee considers this demonstrates a consensus regarding the important and ongoing role that the Australian Government plays in enabling such events.

3.62In this context, the committee was surprised and disappointed to observe the passive approach the Government appears to be taking in relation to the cancellation. While the abrupt cancellation of the 2026 Commonwealth Games is not the Australian Government's fault, the consequences affect Australia's reputation and therefore there is a role for the Australian Government to get active in trying to find a solution.

3.63The committee has not reached a view on which alternative cities could, or should, host a salvaged 2026 Commonwealth Games. However, the committee notes the willingness of the City of Gold Coast to engage in this process.[58] This is a matter for the Australian Government to evaluate. However, given the constrained timeframe to salvage the Games, and concurrent fiscal and cost of living pressures, the committee endorses the principle that alternative options should maximise the use of existing sporting, transport and housing infrastructure across Australia.

3.64The committee has confidence in the willingness of other stakeholders to rise to the task of salvaging the Games, including community organisations, businesses and local governments. Such resilience was amply demonstrated during the COVID-19 pandemic—a challenge which was orders of magnitude greater than this one. This willingness was effectively articulated by Mr Michael Johnston of the Committee for Geelong, who called Geelong a ‘resilient city’ and a ‘pivot city’, which has ‘now pivoted quickly’ into maximising its infrastructure. The committee endorses this approach, and the Australian Government should adopt a similar one.[59]

3.65The committee’s recommendation and preference is for the Games to be salvaged and held in Australia, and for regional communities to benefit from the Games. However, the committee acknowledges the significant evaluation, approval and preparatory work that will be needed in a compressed timeframe across levels of government. In recognition of this, should stakeholders be unable to agree on a realistic way to salvage the hosting of the Games, the Australian Government should prepare a supplementary funding package to further address the gaps and impacts to participating athletes and NSOs.

3.66The committee respects the sovereign right of the Victorian Government to both bid for and cancel the Commonwealth Games. However, in an era where international sporting events can significantly affect the international reputation of a country, the Australian Government must also be prepared to manage such cancellations, regardless of which party makes the decision. The Prime Minister stated on 20 July 2023 that the Australian Government was advised ‘just prior’ to the cancellation announcement.[60] This apparently late timeframe should not occur again. The committee would have expected that state and territory governments would provide adequate notification as a matter of constructive intergovernmental relations and good policy, noting the crucial role that cooperation between jurisdictions plays in delivering major sporting events successfully.

3.67Given the Victorian Government apparently did not consider it necessary to provide the Australian Government with adequate warning, the committee considers the Australian Government should make its expectation for adequate warning clear as a condition of support for bids for future international sporting events. Just as state or territory governments retain their sovereign rights to bid for and cancel events, the Australian Government should insist on its right to be appropriately advised of cancellations, or major changes to events it is supporting.

3.68The committee notes the Victorian Government is resolving matters with the Commonwealth Games organising bodies in its $380 million settlement. While this resolves those contractual arrangements, the evidence the committee has heard thus far shows the many sporting bodies, businesses and communities that the cancellation took by surprise do not consider matters resolved. The Victorian Government should consider its $2 billion package, at a minimum, to represent ‘unfinished business’ with these stakeholders. These stakeholders are just as important as the organising bodies, and deserve a timely and fair resolution.

3.69The committee recommends that the Australian Government takes on a facilitation and coordination role in order to salvage the 2026 Commonwealth Games being held in Australia. Before the end of 2023, the Australian Government should:

establish an intergovernmental forum, through National Cabinet or a bespoke mechanism, bringing together representatives from all three levels of government, business associations and community groups, to examine options to salvage the Commonwealth Games;

direct the Departments of Health and Aged Care and Infrastructure, Transport, Regional Development, Communications and the Arts to produce low, medium and high funding options for the Australian Government that would enable the Commonwealth Games to be salvaged and hosted in 2026; and

subject to the above, and in coordination with any other relevant stakeholders, including Gold Coast City Council and other local governments, enter into discussions with Commonwealth Games Federation and Commonwealth Games Australia about prospects for hosting the Games, including a reduced or decentralised Games if necessary.

3.70If stakeholders cannot agree on an approach to salvage the Games, the committee recommends that the Australian Government develops a policy to address the missed opportunities and impacts from the cancellation of Victoria 2026. The policy, developed in consultation with National Sporting Organisations and National Sporting Organisations for People with Disability, should:

identify which sports and disciplines have been disproportionately impacted by the cancellation, for example those that were relying on 2026 as a pathway to the 2028 Summer Olympics in Los Angeles (LA 2028) and Brisbane 2032, or which have not yet featured at the Olympics and Paralympics (for example, netball);

enable paralympic athletes to access classification events internationally; and

address a shortfall in infrastructure which will not now be funded.

3.71The committee recommends that the Australian Government develops guidelines for future major sporting events which make Commonwealth funding, regulatory, policy and operational support conditional on state and territory governments being required to notify the Australian Government well in advance of cancelling, or making major changes to, a major sporting event for which hosting rights have been awarded.

3.72The committee recommends that the Australian Government encourages the Victorian Government to prioritise the delivery of its $2 billion alternative rural and regional funding package, including by publicly releasing full details on where funding will be allocated, what projects it will be allocated to, and accountable timeframes for delivery.

Footnotes

[1]The Hon Daniel Andrews MP, Premier of Victoria, ‘Regional Victoria Hosting 2026 Commonwealth Games’, Media Release, 12 April 2022.

[2]State of Victoria, Strategy and Outlook: Budget Paper No. 2 2022–23, p. 13.

[3]Mr Tim Ada, Secretary, Department of Jobs, Skills, Industry and Regions, correspondence received 16 May 2023, p. 1.

[4]Ms Necia Fisher, Assistant Secretary, Major Events Branch, Office of Sport, Department of Health and Aged Care, Proof Committee Hansard, 8 September 2023, p. 58.

[5]Mr Neil Fergus, Chief Executive Officer, Intelligent Risks Pty Ltd, Proof Committee Hansard, 8September 2023, p. 11–13.

[6]The Hon Jacinta Allan MP, Acting Premier of Victoria, Minister for Transport Infrastructure, Minister for Suburban Rail Loop, Minister for Commonwealth Games Delivery, ‘Boost for Bendigo as the Best Bowlers Set to Come to Town’, Media Release, 7 July 2022; The Hon Jacinta Allan MP, Deputy Premier of Victoria, Minister for Transport Infrastructure, Minister for Suburban Rail Loop, Minister for Commonwealth Games Delivery, ‘Regional Voices Front and Centre of Victoria 2026’, Media Release, 25 August 2022; The Hon Gayle Tierney MP, Deputy Leader of the Government in the Legislative Council, Minister for Training and Skills, Minister for Higher Education, Minister for Agriculture, ‘New Geelong Culinary School to Boost Commonwealth Games’, Media Release, 6September 2022; The Hon Jacinta Allan MP, Deputy Premier of Victoria, Minister for Transport Infrastructure, Minister for Suburban Rail Loop, Minister for Commonwealth Games Delivery, ‘Eureka! Stadium Upgrade Ahead of Victoria 2026’, Media Release, 12 October 2022; The Hon Jacinta Allan MP, Deputy Premier of Victoria, Minister for Transport Infrastructure, Minister for Suburban Rail Loop, Minister for Commonwealth Games Delivery, ‘New Venues and Closing Ceremony For Geelong In 2026’, Media Release, 29 October 2022.

[7]Athletics Australia, Submission 28, p. 3.

[8]The Hon Jacinta Allan MP, Deputy Premier of Victoria, Minister for Transport Infrastructure, Minister for Suburban Rail Loop, Minister for Commonwealth Games Delivery, ‘Momentum Builds for Commonwealth Games Villages’, Media Release, 1 February 2023.

[9]The Hon Jacinta Allan MP, Acting Premier of Victoria, Minister for Transport Infrastructure, Minister for Suburban Rail Loop, Minister for Commonwealth Games Delivery, ‘Getting On With Geotech Works at Morwell Games Village’, Media Release, 25 January 2023; The Hon Jacinta Allan MP, Deputy Premier of Victoria, Minister for Transport Infrastructure, Minister for Suburban Rail Loop, Minister for Commonwealth Games Delivery, ‘Geotech Works Kick Off At Bendigo Games Village’, Media Release, 1 March 2023.

[10]Victorian Public Tenants Association, Submission 15, p. 1, 4, & 9.

[11]Commonwealth Games Australia, Submission 78, p. 7; CGA, 2023-24 Commonwealth Games Australia Pre-Budget Submission, February 2023, p. 7; Australian Olympic Committee, Australian Olympic Committee Pre-Budget Submission FY23/24, p. 5.

[12]CGA, Submission 78, p. 8.

[13]Athletics Australia, Submission 28, p. 9; Swimming Australia, Submission 30, p. 3; Water Polo Australia, Submission 34, p. 6; Diving Australia, Submission 35, p. 4; Triathlon Australia, Submission 42, p. 5; AusCycling, Submission 46, p. 2; National Sporting Organisation Joint Submission, Submission 33, p. 4.

[14]Rugby Australia, Submission 43, p. 9.

[15]National Sporting Organisations Joint Submission, Submission 33, p. 7–8.

[16]The Hon Daniel Andrews MP, Premier of Victoria, ‘Commonwealth Games Costs Too High At Over $6 Billion’, Media Release, 18 July 2023.

[17]Annika Smethurst, Rachel Eddie, Broede Carmody and Michael Gleeson, ‘Taxpayers on hook for big bill as Commonwealth Games axed’, The Age, 18 July 2023 (accessed 4 September 2023).

[18]The Hon Daniel Andrews MP, Premier of Victoria, ‘Commonwealth Games Costs Too High At Over $6 Billion’, Media Release, 18 July 2023.

[19]Mr Dean Yates, Partner, Ernst and Young, Proof Committee Hansard, 28 August 2023, p. 16–18. Copies of the business case, appendices and costings were published by the Victorian Government.

[20]Mr Yates, EY, Proof Committee Hansard, 28 August 2023, p. 20.

[21]Mr Craig Phillips AM, ‘CGA Statement From Craig Phillips AM – Victoria 2026’, Commonwealth Games Australia, 18 July 2023.

[22]Commonwealth Games Federation, ‘Response to Victoria Government 2026 Commonwealth Games Host Withdrawal’, Commonwealth Games Federation, 18 July 2023.

[23]Ms Catherine Clark, Chief Executive Officer, Paralympics Australia, Proof Committee Hansard, 22August 2023, p. 15.

[24]Mr John O’Callaghan, President, PA, Proof Committee Hansard, 22 August 2023, p. 17.

[25]Mr O’Callaghan, Proof Committee Hansard, 22 August 2023, p. 17; Ms Clark, Proof Committee Hansard, 22 August 2023, p. 17.

[26]Swimming Australia, Submission 30, p. 7.

[27]Ms Elizabeth Jack, Chair, Diving Australia, Proof Committee Hansard, 22 August 2023, p. 50.

[28]CGA, Submission 78, p. 9.

[29]CGA, Submission 78, p. 9.

[30]CGA, Submission 78, p. 6.

[31]NSO Joint Submission, Submission 33, p. 12.

[32]Mr Craig Phillips AM, Chief Executive Officer, CGA, Proof Committee Hansard, 28 August 2023, p.12.

[33]Cr Michael Whelan, Mayor, Bass Coast Shire Council, Proof Committee Hansard, 28 August 2023, p.47.

[34]Ms Giulia Baggio, Chief Executive Officer, Geelong Region Alliance, Proof Committee Hansard, 28August 2023, p. 27.

[35]Mr Michael Johnston, Chief Executive Officer, Committee for Geelong, Proof Committee Hansard, 28August 2023, p. 27.

[36]Ms Baggio, Geelong Region Alliance and Mr Johnston, Committee for Geelong, Proof Committee Hansard, 28 August 2023, p. 27.

[37]Cr Trent Sullivan, Mayor, City of Greater Geelong, Proof Committee Hansard, 28 August 2023, p. 35.

[38]Ms Lisa Hasker, Chief Executive Officer, VicSport, Proof Committee Hansard, 28 August 2023, p. 43.

[39]Ms Hasker, VicSport, Proof Committee Hansard, 28 August 2023, p. 41.

[40]Mr Phillips, CGA, Proof Committee Hansard, 28 August 2023, pp.5–6.

[41]Mr Phillips, CGA, Proof Committee Hansard, 28 August 2023, p.6.

[42]Cr Tom Tate, Mayor, City of Gold Coast, Proof Committee Hansard, 22 August 2023, p. 68 and p. 71.

[43]Cr Tate, City of Gold Coast, Proof Committee Hansard, 22 August 2023, p. 68 and p. 71.

[44]Mr Phillips, CGA, Proof Committee Hansard, 28 August 2023, p.5.

[45]Mr Phillips, CGA, Proof Committee Hansard, 8 September 2023, pp.3–5.

[46]Mr Houston, CGA, Proof Committee Hansard, 8 September 2023, p. 8.

[47]Mr Phillips, CGA, Proof Committee Hansard, 8 September 2023, p.4.

[48]Mr Blair Exell, Deputy Secretary, Health Strategy, First Nations and Sport, Department of Health and Aged Care, Proof Committee Hansard, 8 September 2023, p.57.

[49]Mr Exell, Department of Health and Aged Care, Proof Committee Hansard, 8 September 2023, p.58.

[50]Department of Health and Aged Care, response to questions taken on notice, public hearing Canberra, 8September 2023 (received 12 September 2023), p. [4].

[51]Ms Brooke De Landre, Chief of Staff, Australian Sports Commission, Proof Committee Hansard, 8September 2023, p.60.

[52]State of Victoria, Service Delivery: Budget Paper No. 3 2022–23, p. 73.

[53]Victorian Department of Jobs, Precincts and Regions, Regional Victoria – Commonwealth Games 2026 Business Case, p. 15.

[54]Commonwealth of Australia, Mid-Year Economic and Fiscal Outlook 2017– 18, p. 155; Commonwealth of Australia, Budget Measures: Budget Paper No. 2 2018–19, p. 108; Department of Health and Aged Care, Funding Australia’s Green and Gold Decade, 25 October 2022 (accessed 30 August 2023).

[55]Commonwealth of Australia, Federal Financial Relations: Budget Paper No. 3 2021–22, p. 36; Commonwealth of Australia, Budget Measures: Budget paper No. 2 October 2022–23, p. 160; Commonwealth of Australia, Budget Measures: Budget Paper No. 2 2023–24, p. 171.

[56]Commonwealth of Australia, Health and Aged Care Portfolio Budget Statements 2023–24: Budget Related Paper No. 1.9, p. 111.

[57]Mr Travis Haslam, Acting First Assistant Secretary, Office for Sport Division, Department of Health and Aged Care, Senate Community Affairs Legislation Committee Hansard, 2June 2023, p. 80–81.

[58]Mr Tom Tate, Mayor, City of Gold Coast, Proof Committee Hansard, 28 August 2023, p. 68.

[59]Mr Johnston, Committee for Geelong, Proof Committee Hansard, 28 August 2023, p. 27.

[60]ABC Melbourne, ‘Radio interview – ABC Melbourne mornings’, 20 July 2023.