Commonwealth Games Australia chief executive Craig Phillips speaks to reporters in Melbourne.

Commonwealth Games Australia chief executive Craig Phillips speaks to reporters in Melbourne.Credit:AAP

When asked why several events – or the entire Games – weren’t shifted to Melbourne,Andrews said those alternatives were canvassed.

“We have looked at every conceivable option. All of them are far in excess of the $2.6 billion that’s been budgeted,so all of them represent more cost than there is benefit,” he said.

“There are a whole range of competition-grade facilities that are here[in Melbourne]. A fair few of those are fairly busy,though.[And] then every hotel room in the city would be pretty much taken up by those who are part of the Games,not those who are coming here to watch the Games.”

The premier refused to say how much he thought it would cost to terminate Victoria’s hosting agreement. But he insisted representatives of the state government would meet Commonwealth Games officials in London later on Tuesday with the goal of achieving “the very best deal for taxpayers”.

Opposition Leader John Pesutto labelled Tuesday’s announcement a “massive humiliation for Victoria”.

“This decision is a betrayal of regional Victoria and confirms that Victoria is broke and Labor simply cannot manage major projects without huge cost blowout,” he said in a statement.

Loading

“The cancellation of the Commonwealth Games is hugely damaging to Victoria’s reputation as a global events leader.”

Victoria’s net debt is expected to grow fromabout $135.4 billion next year to $171 billion by 2026-27. This year’s state budget papers did not include any additional funding or timelines for the Games.

Victoria has previously requested a 50-50 funding split between the state and federal governments for the Games.

There was speculation last month that the state had asked the federal government if it could funnelsome of Victoria’s share of the $2 billion social housing fund into Games infrastructure. Both governments later ruled this out.

Andrews said negotiations with the Commonwealth had “nothing to do” with Tuesday’s decision.

“Our ask was 50-50,but not 50-50 at any price,” he said.

Ballarat’s Eureka Stadium was to be refurbished.

Ballarat’s Eureka Stadium was to be refurbished.Credit:Eddie Jim

Deputy Premier Jacinta Allan,the minister responsible for the Games,confirmed there would be a $2 billion support package for the regional communities affected by the announcement.

“Each and every one of the community sporting infrastructure projects that we had been in detailed planning,design and conversations with councils and local communities[for] ... each one of those sporting infrastructure facilities will be going ahead,” she said.

Loading

Ballarat mayor Des Hudson said he was confident the package would mean a 5000-seat upgrade to Eureka Stadium,as well as revamped mountain bike trails,would go ahead as planned. The regional city had been preparing to host athletics,boxing and mounting biking.

Acting Victorian Greens leader Ellen Sandell described the cancellation as a “bit of a shemozzle”.

“The Victorian Labor government has wasted too much time and money on these Games,when it could have instead been investing in solutions to the housing crisis,like a big build of public and affordable housing,” she said.

Prime Minister Anthony Albanese declined to weigh into the debate on Tuesday.

“That’s a decision made by the Victorian government,” he said. “Australia has a fine record of hosting events.”

The Morning Edition newsletter is our guide to the day’s most important and interesting stories,analysis and insights.Sign up here.

Most Viewed in Politics

Loading