Victoria foots massive Formula 1 bill


PLUMMETING revenue has contributed to a massive blow-out in the taxpayer cost of hosting Melbourne’s grand prix.

From a moderate Victorian government contribution of $3.2 million in 1998/89 — the cost to taxpayers has skyrocketed 15-fold to $49.3 million for this year’s event.

While crowd attendances at the event were slightly higher this year, up 5000 to 305,000  — sales revenue has continued to plummet.
Advertisement: Story continues below

In 2006 the event attracted sales of $35.6 million — this year it slid to $24.5 million.

During the same period, costs climbed from $68.8 million to $80.3 million.

The massive cost to taxpayers has been savaged by independent state MP Craig Ingram, who labelled the cost ‘‘embarrassing’’.

‘‘I think it is just outrageous, it has gone past a joke and it is time both sides of politics started to seriously reconsider the ongoing cost of taxpayers bailing out of this event,’’ he said.

‘‘The cost of $49 million for a car race when as a local member of parliament we struggle to get funding for health services, education, support services for disabled kids at schools, for roads and other infrastructure —  I just think there is a whole range of services and other infrastructure which need that sort of money more than a car race,’’ he said.

He said when there was an urgent need for more funding for affordable housing, assistance for special-needs children and ambulance services ‘‘and we’re bailing out a millionaires' car race for these sort of dollars I think we have got our priorities wrong’’.

But Major Events Minister Tim Holding said the event was good for Victoria.

‘‘The economic benefit to Victoria far outweighs the cost of staging the Formula 1 Grand Prix,’’ he said. 

‘‘The race was seen by about 12.8 million people in Europe this year and the massive television exposure that the Melbourne Grand Prix receives has helped to build our world-wide reputation as a great place to visit and a great place to live,’’ he said.

‘‘This year's Grand Prix attracted the biggest crowd in five years and a television audience of 4.6 million in Australia, and with Mark Webber in such good form we expect that next year's Grand Prix will be even more exciting,’’ he said.

Please delete wrote on Sep 16^th, 2010 at 4:42pm:




And how much did the NSW Government spend on MickFest 2008 ?



THE cost to NSW of hosting World Youth Day came in $64 million over budget, according to an Auditor-General's report that raises serious questions about the profligacy of the government in securing major events.

The scathing report, which has not yet been released publicly, accuses the NSW government of a track record of ''underestimating'' the cost of funding major events.

From an original estimate of $20 million, the global Catholic get-together in July 2008 blew out to a total cost to taxpayers of $86 million. Some $41 million - more than double the original estimate for the entire event - was paid to the Australian Jockey Club and the racing industry for the use of Randwick Racecourse for the mass conducted by Pope Benedict XVI.

The draft report by Auditor-General Peter Achterstraat states: ''The costs to the state for the World Youth Day festival in Sydney were $64 million more than initially budgeted. This raised concerns about whether the government is receiving the right advice on major events.''

The latest blow to the government comes after The Sydney Morning Herald yesterday revealed that:

State Development Minister Ian Macdonald is responsible for taxpayers forking out $10 million above the $35 million cap to fund the V8 Supercars race over the next five years

Mr Macdonald committed the government to a $50 million splurge to keep the rugby league grand final in Sydney, $20 million more than Queensland was willing to pay and before it even made an official offer.


http://www.smh.com.au/nsw/youth-day-64m-in-the-red-20100529-wmfs.html

"I have no problem with the state helping sport out,"

I can't agree. For the pope's visit, the NSW taxpayer paid the AJC tens of millions to use Randwick racecourse, which is public parkland.

We paid one of the richest "sports" (that's a joke in itself) to use our own land.

They all went out and bought a new set of tails and a new tophat, and traded in their Bentley on a Rolls.

"firstly the popes visit is not sport.
and by helping sport out, I mean sport should pay back the money the governement puts in. Or at least a majority of it. "

If you read my post, the point was about the AJC, not the pope.

I agree that the taxpayer should be repaid, but wouldn't it be more appropriate to cut the umbilical altogether and let a very wealthy sector manage itself, sans taxpayer monies?

It's the same sort of thinking with the clubs and pokies - let us have pokies so we can support junior sport (or whatever).

There's plenty of money in sport - but it is all concentrated in football and horses.