Australian Grand Prix faces money trouble
The Melbourne Grand Prix has declared serious losses for the 2010 Formula One season, blaming falling profits as the prime cause for its current crisis. The event is under fire by critics who have blasted
it as a failed venue and are protesting its contract, which is to continue for the next five years.
Independent state MP Craig Ingram has voiced his concern over the Grand Prix, which has cost taxpayers nearly twice its 2006 amount. “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 told
the Age newspaper. “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.”
But Major Events Minister Tom Holding argues in favour of the race. “The economic benefit to Victoria far outweighs the cost of staging the Formula 1 Grand Prix," he counters in
the Age. “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.
This year's Grand Prix attracted the biggest crowd in five years and a television audience of 4.6 million in Australia, and with [Red Bull’s] Mark Webber in such good form we expect that next year's Grand Prix will be even more exciting.”
Peter Logan opposed the statement, telling the
Sydney Morning Herald that the tourism industry had shown no significant benefit from the event. “Three years ago, the auditor-general found it does not produce the economic benefits the Government has claimed and he found no tourism benefit for Victoria.
This cost of $49 million is just a huge cost on all Victorian taxpayers.”
As yet there has been no discussion on reviewing Melbourne’s contract.
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