It has been revealed that the Formula 1 Australian GP has posted a big loss this year. The Victorian government, which hosts the race at Albert Park, Melbourne said this year’s edition cost taxpayers $49 million. That sum is the highest in five years and more than double what the 2006 race cost. And despite the bigger attendance this year, sales revenue is on a downhill slide.
It has also been reported that with circuit upgrading costs factored in, taxpayers coughed out a total of $57 million for this year’s GP. Also dragged out is the fact that executives at the Australian Grand Prix Corporation received bonuses totalling $150,000, including $50,000 for CEO Drew Ward, whose total salary topped $380,000.
Needless to say, the news has attracted flak from various parties. “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,” independent state MP Craig Ingram 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,” he added.
Australia’s Major Events Minister, Tim Holding defended the race. He said: “The economic benefit to Victoria far outweighs the cost of staging the Formula 1 Grand Prix. 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.”
Some are still sceptical. Peter Logan from the Save Albert Park group told papers that the race doesn’t help tourism. “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.”
Whatever it is, Melbourne has a contract to host F1 for the next five years. As a host of the travelling circus ourselves, what’s your view on this?
Looking to sell your car? Sell it with Carro.
taxpayers eh? hmmm
an advance country, they get to publish everything, from good to bad.
Us? our newspaper did not tell this kind of story, and no one will say a word on this. Taxpayer? taxpayer are a golden goose, that you would be funny if you dont milk it like no tomorrow.
Here there is no tax payer, its ruling, and been ruled. If you not happy to pay tax, fine, go back to where ever you come from. Thats the mentality.
Have the Aussies taken a peek at our numbers?
Good to know they do check & balance there, unlike here…
Taxpayers everywhere are the same. Only see short term gains but not the long term ones.
From the article, the reason being that the people were not fully informed of the strategy.
This is not the 1st such case that alot of money is spent without the people’s knowledge.
Taxpayers everywhere are the same … they always get screwed by the government.
tax payers get screwed up down left right…..and they are still timely and obedient handing their hardearned money to their govt in income tax…….
Not happy? vote to change next GE
With everyone cutting costs due to the current economic situation, this is a very risky move by the Australians.
paul..
are u trying to play ‘sentiment’ with malaysian???
siapa makan cili dia rasa pedas lor.
x buat F1 pon xpe…benefit x sampai kat rakyat pon
we have 2 ‘paul’ answering to my simple question :)
the answer should be simple.
either ‘yes’ or ‘no’
that is all.
Lol, dat paul edi retired. His nxt work begins when euro 2012 starts :)
Anyway, ozzie gt a new msian-born finan minister, it’d b interesting if there’s more revelations like this n see if their ppl will attribute them to her carrying a famous politician’s trait from our country: ‘wasting billions of taxpayer’s money’ hehehehe
it costs millions just to advertise on a single TV station,
but they got world broadcast of their country for that 49 millions.
not to mention the tourism gain from media for their interesting places
in their country, the economic gain from the spending and others.
that are just some benefit, and its affect the long term gain…
that loss is relatively small for that kind of gain…
there are many more types of misuses of taxpayers money that are
more serious… but not this one…
just my one cent =)
This shows some people is looking at castle in the sky compare to practical return.
over there…every single cents must be accountable…that’s what a 1st world countries, ppl can question their govt for accountability
I guess you skipped reading this bit:
“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.”
so aussies let’s abandon F1
and go for rally or nascar instead
LOL
walauwei 2 “aussies” already thumbs down my suggestion
LOL
It’s exactly what you said it; it’s a circus. Nobody actually cares for F1 nowadays. I mean, seriously, who is really an F1 fan?
I rather watch FIA GT1 and WRC races. At least those cars look like real cars, not just ugly car skeletons. And the cars do a lot more exciting manouvers during the race than just simpy hitting pit-crew.
Totally agree with your statement. Sepang circuit should promote real car races. It would be excited to watch porche, lamborgini etc trasching each other. In fact F1 races already entering a sunset scenario as price of oil will definately excalate. I assume that once price of crude oil reach USD100 again, F1 will be in trouble again with major brands pulling out.
LOL
so called the “real car” race suppoter..
have you guys been to sepang when japan GT race is held there?
what about tat boring sleepy MMER race?
there’re so many “Real car” on that 2 event
walk the talk maaa.
Well, you are rite. Maybe Malaysia should not have F1 circuit altogether i think. Complete waste of money, just like KLIA, when the budget terminal is making more money than white elephant KLIA. Sepang circuit is making losses and all of us are dumb not to question it. No thanks to Dr. M so called mega projects which do not bring any benefit.
which DR.M mega project did not bring any benefit meh?
which DR.M mega project didn’t bring any benefit meh?
can you give facts and figures meh?
Putrajaya? Cyberjaya? KLCC?
White elephant KLIA? maybe you NEVER travel OUTSIDE MALAYSIA using international flight meh.. that’s why in your blurry eyes it’s look like white elephant.. maybe you watch too many barney and friends kid show meh
SEPANG? you said you “Real car” race supporter meh. have you been there to watch japanGT live meh?
eh.. which ASTRO channel televise FIA GT1 live meh?
porche, lamborgini etc use oil not water if i can recalled la…..n some hav bigger engine eg V12 thus more fuel guzzler …they r more venerable to price of oil…than f1 V8(that will become even smaller in 2013 onward).
f1 cars are still the biggest gas guzzlers of all race cars. having more cylinders doesn’t necessarily mean more fuel use.
giv me name of N class fia wrc no1 top driver…don google!!!..even u know the accident last f1 race..u said nobody care..how come u know? i used to watch rally the time when ford focus, subaru impreza n mitsu evo days..it become to boring nowadays
at least they are honest, revealed everything…
at least they dont waste $$$ on some stupid palace, pointless buildings, structures, monument etc etc….
we here are more worse, makan already, cuci mulut, then habis cerita……
PS: rally and nascar FTW~
Aussies shouldn’t be concern when they see the figures in malaysia. I hope they take it with a pinch of salt.
If only they could see the msian numbers….come to think of it, where’s our numbers? tranparency??
It is understandable the anger from the taxpayers, because big chunk of their monthly salary is taken away over there..
But, they should not be just looking at the loss made, but the overall benefits, large influx of visitors for a world event usually brings a lot of other benefits e.g. inbound foreign currency, tourism industry etc., unless those did not register positive gains during the period as well.
I wonder why most developing countries race to build F1 circuits.. are they really economically feasible, or is it just a hype which everyone wants a piece of the action?
F1 is moving from West to East. And mostly funded by Government, M’sia, China, Middle Eat, S’pore, Korea, India…,Got it ?
pay tax for almost 50% from their income… mesti angin punye
compare to malaysian,,only pay up to 27%… but expensive for foreign car…
that why i choose local car…. so i give less contribution to gov…
any new circuit will definately using gov money… but yes,rakyat always make noise to make sure their gov spend it wisely…
better spend it in motorsport rather than dump a large amount building ”rumah remaja hamil”. such nonsense..
my 1 cent..
in a perfect world , a curcuit should generate enough revenue for the entire year’s expenses , actually only few cicuits make a profit in an F1 calender , but this is not a short term business , its a long term plan and ppl should not jus look at short term gains….
for us here , we mite as well pay for the F1 events at sepang than our tax money goes into somebodys pockets!
I think what the Australian people are cringing about is the fact that the so called ‘long term goal’ has seen the circuit lose money for consecutive years.
Their govt also revealed recently (for spending 30mil to get Oprah to come to Australia) is that for the past 10 years or so… more Ozzies are vacationing overseas than foreign tourists coming in. Time to crunch the maths again i think. Not bashing anyone just giving a bit of perpective here.
This is what I found yesterday,
http://www.f1fanatic.co.uk/2009/12/28/malaysian-washout-2009s-dearest-race/
Last year’s race cost us about USD45.7m in race fee. It is about USD1.47m per lap as they only managed to race for about 31 laps due to heavy downpour. Mind you, this is only race fee, paid to Mr Bernie, I presume.
How much is the total cost of organizing the race last year and this year? I’m an F1 fan but I do think it is a tad too much for us to bear.
Oh, and Monaco paid NOTHING for them to host F1 race there!
Monaco is a different story. It’s more of a place to schmooze sponsors and the rich & famous rather than a race circuit. No wonder they don’t have to pay a single thing!
dont forget, there is also the historical significance of the monaco gp to F1
We already got used to get ripped off by our gubbermint what… wouldn’t really matter that much if it cost us more tax money.. I just want my circus!
If i strike the 6/58 toto jackpot (43mil todate), may be i will sponsor a night F1 race in KL streets… and free entrance… Big Heart
i don’t mind paying, at least we got F1, if not, maybe the money do down the drain anyway…
like buying RM2000 hammer and RM25000 laptop.
Ahhhh . The most stupid must be the Singapore government … Tiru semua org wasting tax payees Money!!! Shhh ..singapore cAn do no wrong!
in sinjapor ah
if kuan yew wants F1.. the people get F1
hope one day kuan yew wants RALLY or NASCAR
so the people can get to watch RALLY or NASCAR
live right in front of their HDB flat meh
let us route for RALLY and NASCAR
before kuan yew make it
LOL
don’t act like a Taliban la you people, if wanna keep every penny susahla. we need to invest to attract tourist & the economy impact for tourism products is positive. hotels/agents/circuit-workers/mass-media all benefits from events. and its part of advertisement for our country.
Wait for our GP financial report too. remember those were the days SUKOM 98 still not closing their account till today.
we cannot compare Aussies scenario with Malaysia’s..do you think Malaysia is well known as Australia? Previously, most people around the world thought that Malaysians are still living up on trees. Organizing F1 had definitely boost up the country’s image tremendously in the world stage..the Petronas Twin Tower is the same case..
The issue for most of us, regardless of which country we live in, is that races such as F1 and MotoGP are expensive to watch – that is why most will shun the races even if we’re a self proclaimed gear-head. And as mentioned above, to run the races unfortunately ain’t cheap.
Due to these problems, Sepang tries very hard to make the races affordable to locals. This in turn benefits tourists as well. In last year’s MotoGP, Aussies made the biggest number of tourist that came to Msia during the race week. So as u can see, the powers behind Sepang aren’t just letting the so called white elephant laze around, they’re whipping it into motion.
Sepang was the first to host F1 with a concert, not surprising the Sporeans copied the concept. F1 isn’t so much about the race, it’s a way for the country to generate money from tourist mullah and give us locals an international event in our own backyard.
F1 rocks! I hope they have an awesome car show in 2011’s F1. If so, i’ll go no questions asked!
Dear Australians,
AUS49 Million is NOTHING if compared what Malaysian Government spend since ‘Merdeka’.
We are not talking about your normal 7 or 8 digit figures, we are talking about our very own 10 digit figures and above.
Not to mention what ‘that’ particular ‘tin milo’ company spent for the last two and a half decade.