Taxpayers could face a big jump in the cost of hosting the Australian Grand Prix after 2010 if Victoria wins the right to keep the car race in Melbourne.
An analysis of the Australian Grand Prix Corporation’s financial reports for the past seven years shows that in 2007, the first year of a four-year contract extension, event management and staging costs jumped 25%.
The average increase over the six previous years was 5.1%.
Mr Ecclestone is believed to have put an offer for Melbourne to retain the race beyond 2010 during a two-hour meeting with Australian Grand Prix chairman Ron Walker. Mr Walker is briefing State Government officials on the details, with Government insiders hopeful an agreement can be reached.
But Government and Grand Prix sources said negotiations were at a delicate stage and there was no “done deal”.
Mr Walker said last night the issue of night racing should not impede an agreement. “The impasse (on whether the race should be held at night) has been resolved in a very amicable way - but in the end it will be the Government’s decision.”
Tourism Minister Tim Holding has added that, night race suggestions apart, the government is fully behind the grand prix and desires to see the current contract extended beyond its expiry in 2010. He explained that major events - such as the grand prix, AFL grand final, spring racing carnival, Australian Open tennis tournament and Winter Masterpieces exhibitions at the National Gallery of Victoria - had become Victoria’s ‘key point of difference’ with other destinations in the country.
Acting Victorian premier Rob Hulls said “No deal has been signed; we’re keen to retain the grand prix, but not at any price.”
Mr Walker said Mr Ecclestone was not moving on a night race, designed to maximise TV viewer numbers in the northern hemisphere.
“He’s been very consistent on a night race,” Mr Walker said.
Mr Walker is expected to discuss the contract with Premier John Brumby and Mr Holding when he returns to Australia. Mr Brumby is due back in Australia on Sunday after a week-long trade mission to the US.
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