The Victorian government's decision to scrap the Commonwealth Games has been labelled a "complete embarrassment" and a "slap in the face".
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Federal member for Wannon Dan Tehan said premier Daniel Andrews had "just trashed" the state's reputation for being able to host international sporting events and said it was a complete and utter embarrassment.
Mr Tehan said Mr Andrews had completely mislead regional Victorians over the games which were to be hosted across the state in 2026.
"Everyone had hope that they would benefit from the Commonwealth Games including south-west Victoria," he said.
"Those hopes have been dashed and now the premier has egg on his face."
Mr Tehan said athletes who were training for the games were now faced with uncertainty about whether the event would go ahead anywhere.
He said it was sad for all the local sporting groups who held out hopes of hosting teams for training or practice matches.
"All the time, effort and hope he has just trashed that. He's trashed Victoria's reputation at the same time," he said.
"The idea that this money will now go to housing - he's just been given $2 billion by Anthony Albanese for housing. It's just smoke and mirrors again.
"It seems like all south-west Victoria will get is basically a slap in the face from the Andrews Labor government.
"All that time and effort that went into trying to host teams, to trying to get our facilities upgraded looks like completely dashed."
Mr Tehan questioned whether any of the Commonwealth Games legacy projects such as sporting facility upgrades and housing would still go ahead on time or on budget.
"How could anyone trust that any of those commitments that they're now making will be delivered on time and on budget because this has just shown complete and utter mismanagement," he said.
South West Coast MP Roma Britnell said the decision to cancel the Commonwealth Games showed how poor the state government's planning capabilities were.
"It's disappointing for the regions," she said.
"What is really concerning is the underlying issue of how did they get it so wrong?
"Everyday builders deal with budgets without cost blowouts.
"Every other small business is coping in the same environment."
Ms Britnell said the legacy outcomes including sporting facilities and housing wouldn't help the south-west.
"It's complete mismanagement and shows how broke the government is," she said.
"It's all starting to unravel."
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