“While it is reasonable to commit the State’s resources responsibly, pulling the pin on the Commonwealth Games at this relatively late stage reflects poorly on Victoria’s approach to major events,” Tim Piper, Victorian Head of the national employer association, Ai Group, said today.
“The decision reinforces the perception and reality that Victoria is an increasingly difficult place to do business.
“The cost blowouts should have been foreseen earlier before businesses and community groups had committed their resources and time to their own plans for the Games. They must be considered in the aftermath of this decision.
“The cost, timeliness and overall logistical difficulties of running a largely regional Commonwealth Games was a significant and foreseeable hurdle. The overall cost estimates for the Games always appeared inadequate and that was understood very early in planning.
“It is arguably the right decision from a cost perspective not to pursue the regional-based Commonwealth Games, but the decision will be seen by many as an international embarrassment and a significant reputational risk for Victoria.
“The legacy for Victoria will not be a positive one. Whether we should have entered into the arrangement initially is no longer the question. The question now is whether this is the right decision and whether there were better alternatives such as running them in Melbourne. It’s the long term damage that concerns us, including the cost to break the contract,” Mr Piper said.
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