Wednesday, 20 March 2024

Victorian Auditor-General’s Office

Withdrawal from 2026 Commonwealth Games

Georgie CROZIER (Southern Metropolitan) (17:39): I rise to speak to the Victorian Auditor-General’s Office report that was tabled today, the Withdrawal from the 2026 Commonwealth Games. This is a damning report, and it is a report that we certainly were anticipating and looking forward to reading, but I do not think the Victorian community would be. They would be very concerned about the findings in this report. As we suspected, there are many issues that the government needs to answer, and in particular it is the Premier that needs to answer what on earth went on under her watch as the minister responsible. It is a damning report. It has confirmed the true cost and the political nature of this entire debacle.

Let us not forget that when this announcement was made, it ricocheted around the world. Our reputation has been severely damaged because of the government’s decision and what went on. What we do know – what the report has found – is that it is going to cost Victorian taxpayers in excess of $589 million. I do not think we have seen the end of that massive cost. I mean, this is just an extraordinary amount of money. The report claims the $6.9 billion of costings to withdraw from the games were overstated and not transparent and double counted the cost. Now, I want to go to that point, because that in itself is really very concerning.

Key finding 4 says:

… The original Games budget was unrealistically low, but the final estimated cost of $6.9 billion was overstated …

It goes on to explain why:

The figure is overstated because it double counts costs relating to industrial relation risks and cost escalation risks.

The $6.9 billion included:

• a $1 billion contingency allowance, including $551 million of estimates for individual cost items and a project-wide contingency provision of $450 million

• $2 billion for additional cost pressures primarily relating to industrial relation risk and cost escalation risks.

That is that $3.6 billion that on 20 April 2023 the then Minister for Commonwealth Games Delivery, now the Premier, Jacinta Allan, agreed to, a revised gross budget for the Commonwealth Games of $3.6 billion – those figures I have just read out. On 16 May the then minister now Premier told Parliament:

… we are committed to delivering the Commonwealth Games with that $2.6 billion …

She said it was initially promised to fully fund the event, but just a week later the Victorian budget was released, with the approved $3.6 billion being hidden in contingency funding. This is a cover-up. It is clearly a cover-up. It is extraordinary what has gone on. The Auditor-General found that the approved $3.6 billion:

… was not referred to in evidence given to the Public Accounts and Estimates Committee in its May and June 2023 hearings into the Budget.

Victorians deserve to understand fully what went on. The Auditor-General has done his work, and this is an enormous amount of money – $3.6 billion that this government was putting into contingency and covering up. I will say it again: they covered up this huge amount of money, billions of dollars of money, taxpayers money. I find it stunning, so I am very pleased that the Auditor-General could put this report out to the public. It goes on to talk about who was giving advice to the government:

… DJSIR advised us that:

• it did not provide the advice that the Games could cost around $6.9 billion –

they said that –

which the government publicly released. It understands that DPC and DTF prepared this advice

And then the report says:

• DPC and DTF did not consult with DJSIR or seek its advice on the accuracy of the July 2023 cost estimate in the document the government publicly released

This is a cover-up, and that is why the Premier needs to come before the Commonwealth Games inquiry. Stop covering up and tell us the truth.