However, it should be said that this couldn't have been that surprising to anyone. When a summit costs upwards of 150 times the value of similar summits held recently something was misspent.
The interesting part of this whole affair is that the report was leaked now. I find it hard to understand how this would inflict maximum damage. If I really wanted to hammer the Tories over this I would wait until the day of the debates, thereby ensuring that the Tories are caught off guard.
Yet at the same time, I don't think the opposition will get much play over this issue. The G20 summit happened a long time ago now. The public has well over forgotten.
Moreover, financial scandals have hard time sticking to governments. Just ask Jean Chretien. It has to get really really REALLY bad for people to take notice. One billion dollar boondoggle alone is not enough.
To make matters worse for the opposition, they are unlikely to convince many that they would do a better job. Fiscal responsibility is just not a core winnable issue for the left in general. It would be the equivalent of the Tories criticizing Liberal policy on healthcare. Would Canadians really believe the Tories are the defenders of public healthcare? Regardless if it's true or not - the prevailing bias is what it is.
I believe that the Tories will most likely emerge from this and survive. And (I hope) learning some hard lessons.