Sam Birrell (Nicholls, National Party) Share this | Link to this | Hansard source

I move:

That this House notes that:

(1) the Victorian Government's decision to cancel the 2026 Regional Commonwealth Games is not just a significant loss to regional communities in the state, but a body-blow to the reputation of Victoria as a centre for major sporting events;

(2) the stated reason for the cancellation, the cost blowout to between $6 and 7 billion, demonstrates that the Victorian Government either made a serious miscalculation in its decision to host the games years earlier than originally proposed, or is incapable of managing major projects; and

(3) given the mismanagement of this major event, the $2 billion announced to be spent in regional Victoria to compensate for the loss of the games should be determined by the impacted regional communities, not the Victorian Government.

I wish to talk today about one of the great scandals that's happened in Australia in recent times, one of the great examples of financial mismanagement and government incompetence in Australia that affects us all—it particularly affects us in regional Victoria—and that is the cancellation of the Commonwealth Games. The Commonwealth Games cancellation is an international embarrassment. It's devastating for regional Victorian communities, who'd thought this was going to be something really positive for them. It's an example of a state government that is treating taxpayer money with absolute disregard and disrespect, and it's a really shameful episode in our nation and in our nation's great sporting history.

The idea for a regional Commonwealth Games bid was germinated in my electorate, in Shepparton, and led by the Greater Shepparton City Council. That bid was to be for the 2034 games, and there was a lot of discussion about how regional communities might be able to get themselves ready and how we could celebrate regional Victoria with the Commonwealth Games, using some new facilities and also some existing facilities. We could have had a well organised, strategic and planned out event that not only would have celebrated the great sporting achievements and great sporting facilities in regional Victoria—including in my electorate of Nicholls—but would have also showcased regional Victoria as a wonderful place to work, live and enjoy life.

For a variety of reasons, the Andrews government locked in the Commonwealth Games for 2026, not 2034. They did this prior to the state election, which was last year. Shepparton, which had envisaged being one of the regional hubs, complete with athlete accommodation, was dealt out of the major playing role that was mainly focused on Bendigo, Ballarat and Geelong. That's a bit of a bugbear for people: that Bendigo, Ballarat and Geelong have been the only cities that the Victorian government has focused on. Shepparton was going to host cycling events, including BMX and road races.

On 18 July, with no warning, Daniel Andrews pulled the plug on the event, and regional communities, including Shepparton in my electorate, will now miss out on the critical opportunities that the games would have brought them. Australia has taken a serious hit to our international sporting reputation. The reason for the cancellation, we are told—and when it comes to the Andrews government you have to take everything with tonnes and tonnes of salt; not just a grain—was a blowout in the budget from $2.6 billion, in the Victorian budget in May, to $7 billion eight weeks later. Not only that, the break fee for the contracts with the Commonwealth Games association is $380 million—$380 million of money just flushed down the toilet! It's a real entrepreneurial hub, the Goulburn Valley. People set up businesses, do their best and don't mind paying tax if governments use it responsibly, if they build things—like the former coalition government building the Echuca-Moama bridge. We've actually got something; we can get over a river with it. But when they flush $380 million down the toilet because of their financial mismanagement and incompetence, people get really upset about that. As the member for Whitlam said, it takes so long to earn and it's terrible to see a government gambling it away.

The coalition established a Senate inquiry after months of concerns about the ad hoc preparation for the 2026 Commonwealth Games. The Victorian government has shed no light on the finances for the games. In the inquiry, most of the phrases by witnesses were, 'We can't talk about it because it's commercial-in-confidence.' It is shrouded in secrecy. I think it's really shameful that, in Australia, we have a state government that is so cavalier with taxpayers' money and has subjected the Australian sporting reputation, which was magnificent after the Sydney Olympics and many other events, to such international embarrassment. The Andrews government has got to come clean about how it stuffed this up so badly.

James Stevens (Sturt, Liberal Party) Share this | Link to this | Hansard source

Is the motion seconded?

Darren Chester (Gippsland, National Party, Shadow Minister for Regional Education) Share this | Link to this | Hansard source

I second the motion and reserve my right to speak.

Lisa Chesters (Bendigo, Australian Labor Party) Share this | Link to this | Hansard source

I am the federal member for Bendigo and the proud representative of Bendigo. Bendigo was to be one of the host cities for the 2026 Commonwealth Games. The previous speaker is right; the key host cities were Bendigo, Geelong and Ballarat. They are the big three regional cities of Victoria. But there were some other events that would occurred in Gippsland and Shepparton, just to round out that it would have been a regional games.

When it was first announced that the Commonwealth Games were coming to regional Victoria, it was predicted it would generate about $3 billion for the Victorian economy. Numbers in this debate are important: it would have generated and contributed $3 billion towards the economy. Yet we found out earlier this year—and this was the reason for cancelling the games—that it would cost $6 billion to put the games on. It is no wonder people in my electorate did not disagree with the Premier's decision to cancel the games. A $6 billion spend for a $3 billion return—the numbers just don't stack up.

I repeat what I just said: not one person in my electorate has told me they disagreed with the Premier's decision to cancel the games. Since the cancellation, including on the day of the cancellation, I have met with sporting groups. The Bendigo East Swimming Club didn't blink; they said the figure was pretty outrageous. What they want is support for their swimming club. They simply wanted an electric blanket to help heat the pool so they could extend their swimming season. Other groups in my electorate—bowls, which we were going to host in Bendigo—said they are relieved the games have been cancelled because it means they can get on with the discussion about a regional bowls hub in Bendigo, like they have in Shepparton and other parts of regional Victoria. Time and time again I heard from sporting groups in my electorate—who you'd think would be the biggest champions of the Commonwealth Games—that, secretly, quietly, they're relieved because now they feel the council can focus on their clubs and infrastructure needs. This is the crux of it: what could we do with that $6 billion in terms of regional sports infrastructure? There is the upgrading of change rooms, lighting and ovals, and making sure we can actually get the infrastructure we need.

Why my city is okay with the decision the Victorian government has made is all the permanent infrastructure will still go ahead. Our showgrounds will still get their upgrades. All the other facilities that have been committed to will still get their upgrades. Most importantly, the money is being advanced to build social and community housing. People in my electorate desperate for housing will no longer have to wait for the Comm Games to happen and for the athlete's village to be repurposed into social and community housing. That will no longer have to happen. People will be able to access social and community housing sooner. This is another really big reason why my electorate is relieved and not critical of the government for cancelling the Comm Games.

I had people in my electorate—renters—telling me that they were really nervous about being evicted from their homes in the lead-up to the Comm Games. They were worried that their landlords might put their properties up on Airbnb, because accommodation is a real factor in hosting the Comm Games. That's what people were worried about. I held a housing forum—not about the Comm Games but four weeks prior to this decision—and the same subject came up over and over again. People were nervous. They were nervous about what was going to happen in the lead-up to the Comm Games. What that points to is my electorate, like all the other regional electorates and members, know that this is not the right time to be hosting such an expensive Comm Games.

It also puts these international competitions on notice. They have to be more realistic with their price tags for countries hosting these events. These event costs are blowing out. It's something we need to have a really honest conversation about with people in our communities, internationally and as governments. What else could we be doing on the ground in terms of local infrastructure with this money? Whether it be sporting upgrades or desperately needed housing, now's not the time for a $6 billion exercise on the Commonwealth Games.

Darren Chester (Gippsland, National Party, Shadow Minister for Regional Education) Share this | Link to this | Hansard source

I have a great deal of sympathy for the member for Bendigo. I give her a lot of credit for bravely coming in here and try to defend the indefensible. When she says the Commonwealth Games are blowing out, she doesn't recognise that every project is blowing out in Victoria under the Andrews government. I do have a great deal of sympathy for the member for Bendigo and the other Victorian speakers who are going to be here today, trying to justify the level of dysfunctionality and incompetence which has become emblematic of the Andrews Labor government in Victoria.

Remember, this is the government which paid $1.1 billion to not build a road. By their own standards, this wasn't their personal best. We're only talking $380 million for the Commonwealth Games—so $380 million to not host the Commonwealth Games, notwithstanding the other costs they've already occurred which we'll never hear about. The most obvious point—and the member for Nicholls touched on it—is that this has been an absolute debacle for the reputation of Victoria and for the reputation of Melbourne. Melbourne used to have a proud reputation. In fact Melbourne used to be known as a sporting capital of the world. Now it's a rorting capital of the world. Ministers have resigned in disgrace over the course of Premier Dan Andrews's term.

We have seen every major project blow out with no consequences and no explanation whatsoever for why these costs are blowing out. And still the Premier—the Premier with the greatest chutzpah in the world—thinks we should be thanking him. Thank you, Premier for saving us $4 billion. It's like the arsonist turning up at a fire with the fire truck and hose saying: 'Thank me for putting the fire out.' This is a premier who told us only last year, in the lead-up to the state election, that the Commonwealth Games would cost about $2 billion, but now, according to Premier Andrews, they're going to cost between $6 billion and $7 billion. Notwithstanding that no Commonwealth Games in history has ever cost more than $2 billion in the first place, this buffoon, this fool, this incompetent man they call the Premier of Victoria has the chutzpah to turn up and say, 'Thank me, Victoria; I've just saved you $4 billion,' with not explanation about how those costs blew out in the first place.

We have been consistently lied to by the Premier and his senior ministers over many, many months leading up to the state election and past the state election, saying how wonderful the Commonwealth Games are going to be for Bendigo, Ballarat, Geelong, Shepparton and Gippsland. The games were meant to deliver legacy infrastructure. Now we're not getting the games at all and we risk leaving the period of 2026 completely empty-handed because who believes this Premier when he says there's going to be $2 billion for regional infrastructure? Who believes him? Surely those opposite don't believe this buffoon when he says, 'There is $2 billion in regional infrastructure coming your way.' Surely you don't believe him. They don't believe him! Not a word of support for our poor Premier.

Morwell was one region which stood to gain through upgrades to sporting facilities and housing infrastructure. Then we found out yesterday that the housing infrastructure plan was for 10,000 caravans—10,000 caravans was the Premier's plan for Victoria. But it gets better! The caravan industry was meant to give them to the Premier for free. He wasn't going to buy their caravans; he was meant to get 10,000 caravans for free. Then he tells us, 'Oh, the accommodation costs have blown out.' How did the accommodation costs blow out if the caravans were free from the caravan industry? This guy is the biggest goose that's ever led a state in Australia.

I want to go specifically to the impact on my region. Morwell is a town meant to benefit through housing infrastructure but also through the proposed redevelopment of Latrobe City Sports and Entertainment Stadium, which was the old home ground for the Morwell Falcons national soccer league team. The state government has made commitments to Gippsland and to the people of Morwell that that facility would be upgraded as part of the Commonwealth Games. It is a facility that is in desperate need of upgrading. It's one that used to host the national soccer league games for the old Morwell Falcons. The people in that community are now telling me there is massive uncertainty. Are they still getting an upgrade at all? Will it be done by 2026, as was originally promised as part of the Commonwealth Games agreement?

I'm aware of a master planning process that went on a couple of years ago through the Shire. I'm prepared to work with the Shire and the state and federal governments to deliver these upgrades, but we actually need the Premier to show us the money. Is the money still there? Are we going to see these upgrades in relation to the change rooms, the grandstand and the drainage on the field? These are things that the people of Morwell are saying: 'Premier, you promised us the Commonwealth Games; you promised us upgrades to our facilities. Right now, we have no Commonwealth Games.' We have a massive bill for Victorian taxpayers of $380 million, plus what we've already paid staff. It goes to the absolute heart of the dysfunctionality of the Victorian government under Premier Dan Andrews.

Joanne Ryan (Lalor, Australian Labor Party) Share this | Link to this | Hansard source

I rise to follow the member for Gippsland, who had the 'chutzpah'—he used the word a few times—to come in here today to speak about a Victorian issue, but to speak about ministers resigning because of sports rorts, but suggesting they were Victorian ministers when everybody in this place knows there was a minister who resigned over sports rorts. It was a minister who resigned over sports rorts; it was a federal minister in the previous government. In fact, it was a national minister in the former government that the member for Gippsland might want to remember.

There is no-one more disappointed than me that Victoria won't be hosting the Commonwealth Games. I don't live in regional Victoria. In fact, I represent a city that has grown fast to 320,000—

Honourable Member:

An honourable member interjecting—

Joanne Ryan (Lalor, Australian Labor Party) Share this | Link to this | Hansard source

Right next door to Geelong! But we weren't part of this regional development because we're outer suburban. But I was looking forward to watching the Australian Diamonds play in a Commonwealth Games in regional Victoria. My federal colleagues and I in the federal parliament share the disappointment that the Commonwealth Games won't happen in regional Victoria. We don't, however—like those opposite—want to politicise it. It seems perfectly reasonable to me that, if costs have blown to $6 billion, the Victorian government has made a tough decision in a cost-of-living crisis, where we have big build happening and where we have a focus around the need for housing. And, yes, we have a focus around the need for supporting infrastructure, a perennial issue, but it seems to me that they have made the tough decision to maintain a $2 billion spend to fulfil commitments to regional communities, including housing, but to save the state the cost of the Commonwealth Games.

Those opposite omitted to talk about the fact that the Commonwealth Games itself came to Victoria and asked for help and that this is not the only place that has reversed a decision around the Commonwealth Games. We are reminded that the Canadian province of Alberta has withdrawn its support to host the 2030 Commonwealth Games, citing costs and other difficulties. Given that this is the federal parliament, we might want to talk about this federal government's commitment to sport. We might want to talk about the fabulous things that are happening now. We might want to mention the wonderful FIFA Women's World Cup event. To give credit where it's due, the former government did make a commitment to supporting the FIFA Women's World Cup. We've just had the joy of seeing that on our own shores. In my patch, we were hosts to Morocco as part of that. It generated an enormous amount of excitement in our communities and for young people. But, on top of that, this government, rather than finger-pointing, is focused on moving forward with inspirational and world-class sporting events—the green and gold decade of major sporting events being hosted in Australia, culminating in the Brisbane 2032 Olympic and Paralympic games. We're delivering record investment in boosting sports participation and developing the next generation of Australian athletes and para athletes.

We've worked collaboratively with the Queensland government to reach the funding agreement to deliver the infrastructure at the heart of Brisbane 2032, with the intergovernmental agreement signed by the Prime Minister and the Queensland Premier in February. There hasn't been a lot of talk about that from those opposite. The Australian government will be central to project planning and delivery, with decisions to be made jointly by both governments as the project progresses. Not only that, as recently as the past fortnight, we announced a special grants program around women's participation in sport, and we put together—not just announced—a program. I say that because, following the previous government, who were most noted for their coloured spreadsheets around sports grants, this government is being particularly careful. I want to mention Minister Wells for pulling together the expert panel around that $200 million grant program—people who have lived for sport and people who have competed in sport at the highest levels representing Australia who are now going to be sitting at a table working with our peak sports bodies to determine where those funds go.

This is a government that values sport, it's a government that understands the power of sport and it's a government that wants to see Australia compete at the highest levels and at the grassroots.

Anne Webster (Mallee, National Party, Shadow Assistant Minister for Regional Health) Share this | Link to this | Hansard source

I rise as a proud Victorian member of this federal parliament to speak on the Victorian government's body blow to the reputation of my great state. I am of course talking about the Andrews Labor government's decision to withdraw from hosting the 2026 Commonwealth Games. Not only was it a wrecking ball to the state's reputation but it also hurts regional Victorian towns. This was to be a showcase of regional Victoria—though, sadly, not for any town in my electorate of Mallee. My constituents have grown accustomed to being ignored by this state government. Premier Andrews has lowered Victoria's standing on a number of levels.

Victoria has always had a great reputation as a sporting mecca. The AFL Grand Final, the Boxing Day cricket test, Formula 1's Australian Grand Prix and even the recent NRL State of Origin games have proven Victoria's ability to play host to events that the eyes of the nation and the world focus on. The Commonwealth Games would have been yet another example but with a wider lens. The events I just listed have centred around Melbourne, but the games were to broaden to regional Victoria. It was going to be a celebration of what the great state of Victoria has to offer beyond the city limits of Melbourne, and there is plenty, I can assure you. But now Victoria has been left humiliated—a state that cannot be relied on to complete what it starts. Yes, the Andrews government has failed the people of Victoria and tainted the Victorian brand. Who says yes to a major global event but then walks away due to their own planning failure?

Premier Andrews has not ruled out bidding for the 2034 FIFA men's World Cup matches. I laughed when I read that. You can bet there will be trepidation the next time an international sporting body looks to Victoria under the Andrews Labor government to host an event. Premier Andrews's stated reason for the cancellation of the games was a $67 billion cost blowout. This startling figure demonstrates the incompetence of the Victorian government and its key decision-makers. Either they made a serious miscalculation years earlier in their original decision to host the games or they are incapable of managing major projects. You have to ask the question. Now taxpayers are footing the $380 million bill for Victoria to pull out of hosting these games.

The fallout from 'Disastrous' Dan Andrews pulling the plug on Victoria hosting the Commonwealth Games has shown just how little regard the Victorian government has for its regions, even those that are traditionally strong Labor voting areas. Regional groups have told a Senate inquiry that they were ignored by the Victorian government as they sounded the alarm on decisions about facilities and the housing of Commonwealth Games participants. In Ballarat, requests to improve housing around the inner city fell on deaf ears as the state pushed ahead with plans for an athlete's village in an industrial area instead. In Bendigo, another Labor stronghold, the local table tennis association only learnt that their city would be hosting the sport when it was announced. The Andrews government clearly didn't feel the need to give them the respect of a heads up. In Gippsland, Morwell was chosen to host rugby sevens despite having no local union or league teams, with both the NRL and Rugby Australia raising questions about the event's value to the town.

Regional communities simply were not consulted, a trend with the Andrews government. They might have actually been able to solve some of the problems that caused the government's costing blowout. When you consult, you learn and negotiate, and the Andrews Labor government has done neither. What Victorians have been left with is a state that has failed to pull off what should have been a significant event. In the eyes of the world, we have been embarrassed by the Victorian Labor government and by Premier Daniel Andrews. I stand with my fellow Victorian colleagues on this matter. We will not let our state government's failure be simply brushed under the carpet. It is not good enough.

Cassandra Fernando (Holt, Australian Labor Party) Share this | Link to this | Hansard source

I always note that two things bring our communities together—food and sport. So many young people and their families in my electorate of Holt are invested in the sport of their choice, spending hours in varying conditions, all for the passion of the game. But with this passion also comes common sense. It is safe to say that a player will continue to play on until the risks are too much to bear. This common sense applied on the field extends to the common sense applied off the field, especially in the case of the Victorian government's decision to not continue hosting the 2026 regional Commonwealth Games.

The Albanese Labor government shares and understands the disappointing news of the Victorian government's cancellation of the 2026 Commonwealth Games. It has impacted many, particularly Australia's best athletes and para-athletes, by removing an additional competition opportunity on the pathway to the 2032 Brisbane Olympic and Paralympic Games. But Labor governments look at many things, with the sound and impartial assessment of risk and reward. All governments, be they local, state or federal, have to make difficult decisions and choices in the best interests of the communities they serve.

The primary reason Victoria agreed to host the games was to deliver lasting benefits in housing, tourism and supporting infrastructure across regional Victoria. This was intended to be accomplished with a budget of $2.6 billion. Unfortunately, according to public statements from the Victorian premier, the cost of hosting the regional Victorian Commonwealth Games will exceed $6 billion, more than twice the estimated economic benefit the games would bring to Victoria. This, rightfully so, is a cost blowout. If the costs significantly outweigh the economic benefits and outcomes, it will be an injustice to the Victorian people to continue with a project that does not deliver net benefits to them.

Victorian regional communities can and will continue to preserve in the absence of the games not because they do not deserve to host them but because they are more resilient than relying on a single event to showcase their greatness. Is it justifiable in this current economic climate to redirect money from other areas of the state budget to impact every day Victorians? No. This is why the Victorian government's decision to cancel the 2026 regional Commonwealth Games was a sound decision. Again, sometimes governments need to make difficult and unpopular decisions for the greater benefit of the community.

Victoria can and will continue to be the centre of major sporting events. Outside of the two times over COVID, Victoria hosted the AFL Grand Final, and it continues to be the hub for many sporting events, like the Australian Open and the Grand Prix. It is silly to assume the reputation of Victoria being a centre for major sporting events will be impacted by a single decision. In light of all of this, there is a silver lining: in lieu of games funding, the Victorian government announced a $2 billion spend package for regional Victoria. This is to ensure regional Victoria will receive all benefits that would have been facilitated by the games, and so much more. The Victorian government has committed to the people of Victoria that every one of the permanent, new and upgraded sporting infrastructure projects planned as part of the games will still proceed and will be completed as planned.

The Albanese Labor government is focused on moving forward. A decision has been made. We will continue progressing with inspirational and world-class sporting events. The green and gold decade of major sporting events being hosted in Australia, culminating in the Brisbane 2032 Olympic and Paralympic Games, will be spectacular.

Lisa Chesters (Bendigo, Australian Labor Party) Share this | Link to this | Hansard source

The time allotted for this debate has expired. The debate is adjourned and the resumption of the debate will be made an order of the day for the next sitting.