The Department of Treasury and Finance (DTF) has denied an auditor general report finding that it failed to work together with two other state agencies to give "frank and full advice" to government ahead of decisions to host and ultimately cancel the Games.
"The advice given by the DTF and by the central agencies to government was comprehensive, frank, impartial and timely," department secretary Chris Barrett told a Games inquiry on Friday.
In April 2022, months away from a state election, the Victorian government agreed to host the event regionally at a projected cost of $2.6 billion but then cancelled it in July 2023, saying the figure had blown out to $6.9 billion.
The decision to withdraw from hosting has cost Victoria more than $589 million, including $380 million in compensation to organisers.
Then Victorian Premier Daniel Andrews dumped the 2026 games when costs soared to $6.9 billion. (Joel Carrett/AAP PHOTOS)
About $200 million went to Scotland, which is running a pared-back Games featuring 10 sports in Glasgow.
Mr Barrett also denied a finding that the department, along with the Department of Premier and Cabinet (DPC), had consistently raised cost risks during 2022 and early 2023 but failed to tell the government the Games might be unfeasible until June 2023.
"At no point prior to receiving updated costs and risks in mid-2023 did DTF consider it likely that the government would reach the point where cancellation was recommended," he said.
DPC secretary Jeremi Moule previously told the inquiry he first flagged cost blowouts with then-premier Daniel Andrews in June 2023, just over a month before the Games were canned.
A third department - the Department of Jobs, Skills, Industry and Regions - has been accused of withholding information from the other two, while underestimating costs and overblowing the benefits in its business case for the Games.
Liberal MP David Davis asked if that department had failed to share adequate information with treasury, and if this was understood to be a direction from ex-Games minister, and current premier, Jacinta Allan to shore up the Games.
Deputy secretary Kate O'Sullivan confirmed information had been lacking, but would not speculate on any intentions behind it.
Mr Barrett, who became DTF secretary in September 2023, said there was no need for change at his department despite the report findings.
"We don't believe that there's an immediate requirement to do something dramatically different as a consequence (of the report)," Mr Barrett told the inquiry.
"It's unreasonable to expect precision at every point in the process."
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