Ignoring the findings and recommendations of the Auditor-General, and without any concern for the environment, or the waste of public funds, or the needs and rights of the community...

Brumby has extended the Grand Prix contract

On Friday, July 4 at a press conference in his office, Premier Brumby announced the extension of the contract to stage the Formula One Grand Prix event in Albert Park Reserve until 2015. The media release issued at the conference, contained the same kind of deceptive and misleading statements the people of Victoria have been hearing for the last 14 years.

Brumby said: The Grand Prix was the jewel in Melbourne's major events strategy.

The other regular major events are the Australian Tennis Open, the AFL Grand Final, and the Spring Racing Carnival, including the Melbourne Cup. The popularity of these events far exceeds that of the Grand Prix, as is shown by TV viewing figures. Gary Morgan of the Morgan Poll wrote this in 2006 (following the 2005 'benchmark' Grand Prix):

With the Melbourne Grand Prix future in doubt (the TV) audience figures make interesting reading. This year's Grand Prix had the lowest audience of any of Melbourne's big sporting events, and was watched by only 4.9 million people, less than half the audience of the Melbourne Cup (10.5 million) and the Australian Open Men's Tennis Final (10) million.

Brumby said: Today's announcement confirms what every Melburnian knows – we live in the undisputed major events capital of the world.

Brumby has invented this title, and it's 'undisputed' because no responsible government would want to earn it. Brumby is basing this claim on a survey by ArkSports, a UK sports research and promotion company. They ranked cities in their willingness and abiltity to stage major sports events, with major considerations being facilities and government support. Melbourne got high marks because it was willing to use inner city parkland for a motor race, and to use unlimited public funds to pay for it.

Brumby said: The Grand Prix has helped put Melbourne on a global stage.

This is a meaningless, hoary old bit of hype. Are we on the same stage as Magny Cours in France, or Interlagos in Brazil ? We note he said 'a' global stage, not 'the' global stage.

Brumby said: Retaining the event is important to Victoria's ongoing growth and prosperity.

This is a fabrication of the highest order. If the Grand Prix had been cancelled after the 2009 race, we would have $45-50 million to spend on education and health care, which help us cope with an increased population, and would create real jobs rather than some overtime in Melbourne's big foreign-owned hotels.

Brumby said: In 2008, more than 300,000 people attended the four-day event ...

No, Mr Brumby you know perfectly well they didn't. You know that this number includes all the event staff, the catering staff, the race teams, the media, the police and security, everybody in the circuit as well as people who attend on more than one day. The real patronage for the event was about the same as any other GP around the world, 80-120,000. If you have evidence to show that figure is wrong, produce it.

Brumby said: The Grand Prix delivers 'value for money for Victoria'.

The Victorian Auditor-General showed in his 2007 report 'State Investment in Major Events', that the Grand Prix does not deliver value for money for Victoria.

Brumby said: The Grand Prix brings big spending tourists, creates employment and business opportunities ...

The Auditor-General found that the spending by these big spenders did not outweigh the costs to Victorian taxpayers of staging the event. Your economic consultant, NIEIR said the event created 3650 jobs. The Auditor-General could identify only 400 jobs. If the others exist, where are they?

What exactly were the business opportunities created?

Brumby said: The massive television exposure that Melbourne receives year in year out has helped build our world-wide reputation ...

What massive TV exposure are you talking about? The 500m claimed in 1996, the 270m in 1998, the 350m in 2002, the 94m in 2006 or the 100m in 2008? Why has there been such a dramatic drop since 1996?

Brumby said: Next year's later start time will mean ... more exposure for brand 'Melbourne' than ever before.

How do you measure the effect of this exposure? Who gets the real benefit from the late start? It's Formula One isn't it?

They can get more money for their TV rights when it's 'breakfast time' in Europe.

Tourism and Major Events Minister Tim Holding was also quoted in the media release.

Holding said: Hosting the Grand Prix in Melbourne provides significant economic and tourism benefits for the whole state.

We've heard this from Brumby already . The economic benefits are measureable, but you should know from the Auditor-General's 2007 cost-benefit study that they are not big enough to offset the costs of the event. What exactly are the tourism benefits? Nobody could find them for the Auditor-General.

Holding said: Each year our hotels are booked out with tourists from across Australia and the world ...

All our hotels? Have you checked out all Melbourne's hotels during race week?

Holding said: ...our restaurants and cafes are overflowing.

But not the shops around St Kilda, Albert Park and South Melbourne, and its local market. Most suffer a serious loss of businesses during race week.

Formula One boss Bernie Ecclestone was also quoted. Ecclestone said he was delighted the Grand Prix was continuing in Melbourne.

What was that ? You are delighted with a daylight race? Didn't you say recently it would have to be be a night race?

Even Grand Prix Corporation Ron Walker was quoted: Walker said: Formula One is good for Melbourne and Melbourne is good for Formula One.

Ron, you are half right there, which is an improvement on most of the things you say.

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