Hi Everybody,
We thank our friend Peter Logan from Save Albert Park for putting this information together for us, and for their 17+ years of campaigning on behalf of our community. Whether you live near the Grand Prix or not, we think you will find this information as illuminating as it is outraging. You can post any comments you may wish to contribute here on the LIVE BLOG where this email is posted.
The following has been written by Peter Logan, a former councillor with the City of Port Phillip. T 9699 1606, M 0412 697 074.
For the sixteenth year in a row, many opinions are expressed on the Grand Prix but how many are based on fact, rather than lies and propaganda?
Now there is independent evidence on the so called economic benefits, branding, putting Melbourne on the map and other intangible benefits to the state. Our democracy cannot thrive on perception. Perhaps Jeff Kennett should have made Victoria’s number plate slogan ‘State of Delusion’ as he never wanted us to know the facts about his Grand Prix.
Many – including some politicians (privately), those in the media and motor-racing fans themselves – acknowledge attendance numbers and other claims of the Australian Grand Prix Corporation and the government are highly dubious.
The Australian Grand Prix has no turnstiles or barcoded ticket system, yet Grand Prix attendance numbers were, for many years, quoted as fact until the Ombudsman investigated and found them to be estimated. Now, there is solid evidence from the AGPC’s own audited accounts that they are overstated and many other long maintained claims are being challenged as we discover the truth.
These facts we now know, as we have evidence:
- Claimed attendance numbers for the four days have plateaued at around 300,000. Yet, during the same time, corporate and grandstand seats have plummeted and remain largely empty on the first two days of the event. Sales revenue (mainly ticket sales) in 1997 was $38m and dropped to only $26m last year, while claimed attendance went up from 287,000 to 298,187 in the same period. The Age article ‘Truth on crowds would hurt us’, admits GP chief (26/02/08) has now come true. The attendances are grossly exaggerated. And sponsorship revenue has dropped even further than ticket sales.
- The Economist indicates the global numbers watching the Australian event to be just 16 million. Grand Prix chair Ron Walker has put out figures ranging from 54 billion a year for F1 (yes, 7 or 8 times the world population) through 500 million to 350 million for our race. All of these have been proven to be wrong by independent ratings agencies, and indeed, by Formula 1 organisation itself.
- Branding, that is exposure of MELBOURNE for the 2011 event according to Formula Money’s return on investment review was only $262,552. That means we spent $50 million plus to get back a quarter of a million dollars last year.
- The economic impact study commissioned by the state government and undertaken by Ernst & Young was always going to return a positive number – it doesn’t address costs. The Auditor-General and Ernst &Young both advised a cost benefit analysis is needed to determine whether the Grand Prix delivers a net benefit to Victoria or not. Natural disasters provide an economic impact but this does not mean they benefit the state.
- The Auditor-General’s peer reviewed cost benefit analysis of the 2005 Grand Prix found it was a net negative economic investment for Victoria. He recommended this be updated annually and is the only measure recommended by the majority of economists to determine whether an event or project is worthwhile or not.
- Victorian taxpayers have so far provided $427 million in cash to keep the Grand Prix in Melbourne – and the losses are increasing annually. In addition there are subsidies hidden on other government accounts that would probably add up to hundreds of millions of dollars. For example, rent forgone from Parks Victoria, the interest incurred by State Treasury for the cash going into the Grand Prix, TAC, VicRoads and City of Melbourne sponsorships, plus a secret number of free tickets given away. Freedom of Information right to know on the GP has been legislated away.
- ‘Intangible benefits’ are always claimed but can’t be substantiated. The assumption is that those watching the race who saw ‘MELBOURNE’ will flock to our city. The Victorian Auditor-General researched this and found no extra tourists have come to Victoria because we have a Grand Prix.
- Even the Herald Sun, the event’s most ardent supporters, are beginning to see it as a poor investment. Executive editor, Alan Howe this week asked “…if our money might not be better spent on medical research where the return on investment is about six-to-one.”
So do we really need to spend $55 million a year to attract a few thousand Grand Prix fans while other tourists stay away and residents go away because a Grand Prix is in town?
And why keep it when Bernie’s apparently keen to axe the Melbourne event anyway? Not because it’s a Victorian taxpayers’ nightmare but because it’s not lucrative for him! Why? Because he says the television ratings are too low. But didn’t Ron Walker say hundreds of millions watch our GP? No wonder people have confused opinions on the Grand Prix.
We recommend you seek expert advice before forming an opinion. Save Albert Park has media releases on its website with references to independent studies. That’s a good place to start.
Please let’s hear what you think by posting your comment on the LIVE BLOG here.
Regards
Deborah Hart
PS: You may wonder why we have called this posting “You pay $880 for everyone at the Grand Prix”. As our friends well know, we have not had any other opportunity to credit our local Federal Member, Michael Danby, for properly representing our views so are delighted to finally agree with him regarding the Australian Grand Prix at Albert Park. We just think it’s a pity he didn’t speak up forcefully when the ALP was in power in Victoria. http://www.danbymp.com/recent/1684-it-costs-you-880-per-attendee.html
PPS: For those of you who live in the City of Port Phillip, and particularly those who live in ELWOOD, and were affected by the floods a year ago, LIVE will be hosting an ELWOOD FLOODS FORUM on Monday 26 March. Details at live.org.au/elwood.


Malcolm Turnbull demonstrated true leadership last week when he defended scientists against self-serving polluting interests that are throwing their weight around in a desperate bid to avoid responsibility for the life-threatening damage their emissions are causing. He noted that, just like the tobacco companies before them, vested interests are deliberately distorting the science and misleading and frightening the public about the effects of taking the necessary action to protect our climate. Turnbull also pointed out how “galling” it is for the leaders of China and India (whose respective per capita emissions are one-fifth and less than one-tenth of Australia’s) to hear our leaders use their economies as an excuse for not taking responsibility for Australia’s role as the highest per capita emitter in the developed world. Civilisation-saving climate policies ought to have full, bipartisan support and Turnbull deserves acknowledgment for his strong stance, at this important time.

QUOTE: “The political party which accepts the science but not the need for drastic action is like the 40-a-day smoker with impending cancer who gets told by their doctor to give up and cuts down to one pack a day, thinking that is a reasonable compromise.”
Serge Thomann, Martin Foley, Peter Norden (Moderator), Mark Lopez and Ann Birrell
