Walker says time may be up for F1 in Melbourne

A report in The Australian says that Melbourne F1 Chairman Ron Walker has admitted for the first time Australia could lose its annual Grand Prix, an event it has hosted for the past 23 years.

This follows revelations by international F1 boss Bernie Ecclestone that Melbourne was in danger of losing the hosting rights to Russia, India or South Korea unless the Brumby Government was prepared to hold the race at night.

The Victorian Government lost $35 million on the 2007 race and is budgeting for a blowout of more than $40 million this year.

Premier John Brumby has already cast doubt on the future of the race, saying it could become too expensive if licence fees continued to rise.

The Government is negotiating a new F1 deal from 2010 but will not bow to pressure to put the race on under lights at an extra cost to the taxpayer of $60million. The Government wants to keep the race in Melbourne but will not be held to ransom by F1 officials.

“If the Victorian Government can’t negotiate an economical settlement of this (new) contract, then there won’t be a race.”  “When it comes to paying too much money for an event the Victorian Government just won’t wear it,” Mr Walker told The Australian yesterday.

“Everybody would like to keep the F1 race, but if it’s not viable, it’s not viable, and the Government has to be responsible to its constituents.”  “There will not be a night race.”

Mr Walker said the Australian Grand Prix Corporation had already reached a compromise with F1’s world governing body by pushing the starting time of this year’s Albert Park race back 90 minutes to 3.30pm.

“(But) to spend $60 million on lighting in Albert Park is just not on.”  “If it’s all about money, then clearly Melbourne will lose the race,” he said. “There comes a time when you can’t afford to pay these huge amounts of money for these events.”  “The Government has a responsibility to taxpayers.”

The night race had been discussed with Mr Ecclestone “a number of times and he knows we will not be doing a night race”, Mr Walker said. “Bernie is a great guy but also a very shrewd businessman. He’s fired his first shot in negotiations.”

Already Russian President Vladimir Putin is known to be lobbying Mr Ecclestone for an F1 grand prix to be staged in St Petersburg, Mr Walker said.

Speaking for the Brumby Government yesterday, Major Events and Tourism Minister Tim Holding said the Grand Prix would stay in Melbourne provided it continued to represent value for money and was in the state’s best interests.

“We’ve made it clear we will not have a night race. Mr Ecclestone has made it clear he accepts that decision and in fact supports it,” Mr Holding said.

“We said we didn’t feel that a night race was something that would work in Melbourne and Mr Ecclestone at the time said he agreed with that assessment, and then went off to explore night-racing options with other cities.

“We don’t want to lose it but we don’t want to pay any price for it either.”  “It’s a matter of striking a balance and striking the right balance.”

Opposition Leader Ted Baillieu said the Grand Prix was crucial to Melbourne’s sporting calendar and the Brumby Government should pull out all stops to retain it.

“His (Mr Brumby’s) inaction runs the risk of Melbourne becoming a major events backwater,” Mr Baillieu said.

A Report by The Mole from The Australian