Gunman should not have been out says MP

It was a mistake to release a teenage criminal early from youth detention, Victorian Premier John Brumby said after the teenager allegedly terrorised Melbourne's sporting precinct armed with a firearm.

David Paul Rowntree, 19, remains on the loose after a massive manhunt forced a three-hour lockdown of the MCG precinct on Monday.

Rowntree is considered extremely dangerous and is wanted over a string of alleged burglaries and an armed robbery that led to a high-speed police pursuit along a Melbourne freeway.

The gunman was released from youth detention in March, despite serving only a third of his three-year sentence.

Mr Brumby said the parole board had erred in its decision to release Rowntree early.

"They took the view that he was ready for release and they let him out after 12 months, obviously the judgment, I think, was misplaced and he's reoffended," Mr Brumby told Fairfax Radio.

"The person concerned is dangerous, police have got a very large contingent out looking for him and they obviously hope to apprehend him at the earliest opportunity."

Mr Brumby said he was expecting a report on why Rowntree was granted early release.

"There is a parole board, it is made up of experienced people, typically some of them (are) former judges, former police officers, those sort of people.

"They act independently of government and I guess overwhelmingly they get it right but sometimes they get it wrong and obviously in this case they got it wrong."