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Australian state cancels 2026 Commonwealth Games over cost blowout (www.politico.eu)

submitted 2 years ago by [email protected] to c/[email protected]

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[–] [email protected] 3 points 2 years ago* (last edited 2 years ago) (2 children)

This quote was interesting from the Deputy Premier on ABC Radio Melbourne:

Jacinta Allan said the higher than expected costs became apparent to the government in recent weeks.

"We've been going through a tender process, we've been going through market soundings, where you're presented with the actuals — not the estimates," she said.

The deputy premier said the original $2.6 billion budget estimate was figured out by consulting firms engaged by the government, including EY.

Apparently, the government has no idea how to budget properly and then needs to spend money on consultants to check the numbers.

[–] [email protected] 4 points 2 years ago (1 children)

Construction costs have increased dramatically though. Hard to blame budgeting for this really.

[–] [email protected] 1 points 2 years ago

One topic that has been mentioned in some articles and not others is that the shift to a regional, de-centralised event introduced additional complexity and costs that were not adequately modelled.

Insiders say the initial work by government, Ernst & Young and the Commonwealth Games was inadequate with the uniquely decentralised event not having been properly accounted for.
Things like getting enough police and paramedics to the regions, and having enough staff to man the events weren't factored in.

https://www.abc.net.au/news/2023-07-19/commonwealth-games-victoria-daniel-andrews-decision-analysis/102616256

[–] [email protected] 3 points 2 years ago (1 children)

Our governments are infested with consulting firms: https://youtu.be/11ce8C6FFzk

[–] [email protected] 3 points 2 years ago

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