Shepparton — and wider regional Victoria — will no longer co-host the Victoria 2026 Commonwealth Games.
Victorian Premier Daniel Andrews fronted media on Tuesday morning to deliver the news, blaming a budget blowout for the decision to pull the plug on the event.
According to Mr Andrews, an initial estimate of $2.6 billion to fund the Games had already blown out to more than twice that figure — and with the better part of three years to go until the event, the state government was not confident that was the final figure.
“The Games will not proceed in Victoria in 2026,” Mr Andrews said.
“Frankly, $6 billion to $7 billion for a 12-day sporting event, we are not doing that — that does not represent value for money, that is all costs and no benefit.”
Shepparton was set to host cycling events, including the road time trial and the BMX racing competition, throughout the regional Games.
The rights to host the 2026 event were awarded to regional Victoria last year after Birmingham replaced South Africa's Durban as host of the 2022 event.
The Victorian Government set aside $2.6 billion for the Games, with Geelong, Bendigo, Ballarat and Gippsland slated to host their own athletes’ village and sport programs.
Mr Andrews said the government considered moving the Games to Melbourne, holding fewer sports and having fewer regional hubs, but all options were too expensive.
“None of those options stack up and we’re not going to be hosting the Games in 2026,” he said.
Treasurer Tim Pallas had been seeking a dollar-for-dollar matching contribution from the Federal Government.
Mr Andrews said even if the Federal Government did come to the party, the Games were not worth the money.
“I wouldn’t spend half of that money even if I got the other half from Canberra, because you know that’s coming at the expense of something else — hospitals, schools, roads,” he said.
While Victoria will no longer host the Games, some infrastructure projects will still go ahead.
There will be $1 billion spent on more than 1300 new social and affordable housing homes across regional Victoria, $150 million will be spent on tourism and events, and all of the permanent and upgraded sporting facilities planned — including BMX trails in Shepparton — will go ahead.
Regional Victoria became the only bidder for the Games after Durban in South Africa lost the 2022 event and the original 2026 host city, Birmingham, had to step in for last year’s competition.
Meetings were held with Commonwealth Games leadership figures in London on Monday night Australian time and will continue.
The government will aim to reach a “rapid and amicable resolution of all contractual matters” — which includes a settlement of costs incurred.
In a joint statement, Victorian Liberal leader John Pesutto and Victorian Nationals leader Peter Walsh slammed the decision.
“The Andrews Government’s decision to scrap the 2026 Commonwealth Games is a massive humiliation for Victoria,” the Coalition leaders said.
“This decision is a betrayal of regional Victoria and confirms that Victoria is broke and Labor simply cannot manage major projects without huge cost blowouts.
“The cancellation of the Commonwealth Games is hugely damaging to Victoria’s reputation as a global events leader.”
– with AAP