Grand Prix's future in doubt

THE Victorian Government has refused to commit to hosting the Formula One Grand Prix in Melbourne beyond 2010, when the event's contract period expires.

THE Victorian Government has refused to commit to hosting the Formula One Grand Prix in Melbourne beyond 2010, when the event's contract period expires.

Responding to Formula One boss Bernie Ecclestone's threat to take the race elsewhere unless the Government agrees to stage it at night in future, Deputy Premier John Thwaites said yesterday the Government would need to reassess whether the race was in the interests of the Victorian public.

"We've got the Grand Prix until 2010. It is a very important part of the major events calendar. We continue to support that," Mr Thwaites said.

"But in terms of beyond that, obviously we have to see what the situation is."

Mr Thwaites warned that the Bracks Government would not be pushed into holding the race under lights.

Mr Ecclestone has met Premier Steve Bracks in London to discuss the future of the race, which has been attracting smaller crowds and has increasingly relied on government subsidies.

Mr Ecclestone wants to accommodate prime-time television viewers across Europe by staging the race at night at Albert Park raceway.

"There's a lot of negotiating strategy in what Mr Ecclestone's doing," Mr Thwaites said. "He's trying to push the Government in a particular way and the Government's not prepared to just simply respond on the basis of being pushed."

A report by state Auditor-General Des Pearson, due to be tabled in parliament this week, is widely tipped to criticise the heavy burden on taxpayers of staging the event.

Last year, the Grand Prix cost taxpayers $21 million and the cost this year is expected to come close to $30 million.

Opposition Leader Ted Baillieu said the event needed revamping and supported the night-time proposal. He argued its loss to another state or country would be a disaster.