2015 Australian Grand Prix loses a record $61.7m

UPDATE: VICTORIAN taxpayers shelled out a record $61.7m to host this year’s Australian Grand Prix at Albert Park, raising more questions about the value of the race.

Australian GP

VICTORIAN taxpayers shelled out a record $61.7 million to host this year’s Grand Prix event at Albert Park.

The massive loss trumps the previous year’s operating deficit of $60 million and raises more questions about the value of the race for Victoria.

Premier Daniel Andrews has stuck by the race, arguing it is a vital part of the state’s major events schedule and provides a big economic benefit for tourism and hospitality sectors.

This year, almost 297,000 people attended the event, which was held in March.

In September, Mr Andrews revealed that the government had extended the race contract with Formula One until 2023.

At the time, he refused to say what the race had cost in 2015, but insisted that the exposure for Melbourne as an international destination, as well as the jobs provided in hotels and restaurants, made the event worthwhile.

Despite the huge crowd at Albert Park, the 2015 GP still lost money.

Mr Andrews also revealed that NSW had made a serious bid to poach the race.

Sports Minister John Eren said 3.82 million Australians watched the race, while around the world there were many millions more viewers.

He conceded there was a hefty cost to hosting the race, but said bigger and better events mean “more visitors, jobs and growth”.

“The Formula 1 Australian Grand Prix is one of our flagship events that makes us the events capital of Australia and the sporting capital of the world,” he said.

The annual report for the Grand Prix Corporation, tabled this morning, says securing the opening round race for the Formula One season was crucial to maximising economic benefit.

“The privilege of hosting the opening round of the FIA Formula One Championship season allows the Corporation to showcase Melbourne and Victoria worldwide,” it says.

It also says that there has been a 4 per cent increase in total revenue, year on year.

The actual cost of hosting the race this year was more than $101,000. Revenue, including ticket sales, was just under $40,000 — less than in 2013.

The report shows that in 2011, race losses were about $50 million.

Losses soared to $56 million the following year, before some tightening in 2013 saw the figure drop back to $50 million.

Lap one of the 2015 Australian Grand Prix 2015 at Albert Park.

If the cost to host the event continues at the current rate, Victorians will fork out more than half a billion dollars to host the race until 2023.

Western District Vote 1 Local Jobs MP James Purcell said the money would be better spent on fixing roads.

“VicRoads has identified that roads in western Victoria are below the standards of other rural areas in the state and has estimated a cost of $220 million to bring it up to these standards. Four years of Grand Prix funding would fix our roads,” he said.

Greens MP Sue Pennicuik said the record amount of taxpayer money thrown away this year meant the government had erred by securing a longer contract for the event.

“Dan Andrews entered into a secret deal handing over more taxpayer funds to keep the race in Melbourne,” she said.

“This deal will cost taxpayers close to half a billion dollars over the next eight years.”