Melbourne survived another Formula 1 grand prix last weekend. The circus came to town, performed better than expected and promptly packed up to move on to … where? Do you know where the next race is? No, of course not, only devoted F1 fans do.
I will help you out. The next race is in Imola in Italy on April 24. The reason it matters is that the entire economic and business case for forking out a guesstimated $55 million a year of taxpayers’ money for the right to host the race is based on voodoo economic modelling that inflates the value of “name recognition” for F1 host cities to squillions of dollars. It is actually worth diddly squat.
The Grand Prix circus, came conquered and left after another big three days in town.Credit:Joe Armao,
We have to guess at the licence fee because the actual amount is “commercial in confidence” – which is code for “embarrassing”.
Do the local government officials who control the circuit at Imola, east of Bologna in Italy, claim billions in naming benefits? Or is their emotional and nostalgic connection to Enzo Ferrari enough reason to host a race? What about Montreal, Baku (to save you looking it up – Azerbaijan), Budapest and so on?
It is timely to question last week’s post-race commitment that Premier Daniel Andrews gave to extending the contract beyond its expiration in 2025.
Taxpayers have never been told how much the government has paid for the licence fee.Credit:Eddie Jim
The economics do not stack up. The supposed annual commercial benefit of $40 million is dwarfed by the actual and hidden costs. It is a drain on our economy, not a boost.
I would love to be able to enjoy the festival – I am a committed petrol head, have spent inordinate amounts of time and money playing with old cars, and am the natural constituency for an event that celebrates motorsport and its technical wizardry. But I have never been to the race.
Why? Two reasons. After years of resisting, Formula 1 belatedly kicked its addiction to tobacco sponsorship only in 2006. Phillip Morris, the tobacco giant, then tried to reintroduce e-cigarette branding of “Mission Winnow” to the Ferrari livery for 2019, but was thwarted at the last minute by the Victorian government. No moral compass.
More significant are the tragic events of 2001, an appalling episode that must never be forgotten. A volunteer safety marshall, Graham Beveridge, died when a flying race-car wheel struck him in the chest. Frantic track-side attempts to revive him were futile, but he was rushed to the grand prix medical centre where on arrival he was declared to have died.
The race organisers were strongly criticised after a volunteer race marshall was killed in 2021 by an airborne wheel following a major collision. Credit:Ray Kennedy
Instead of the race being stopped, either out of respect or to preserve the scene for police and race investigators, the then grand prix chief medical officer ordered Beveridge’s body to be flown by helicopter to The Alfred hospital for him to be declared dead there. His medical centre records were deleted to remove any reference that he died at the track.
The subsequent inquest led the then chief coroner Graeme Johnstone to the conclusion that the practice of both the doctors and the Australian Grand Prix Corporation were wrong and unethical. The Alfred hospital apologised and abandoned the protocols by which it provided support for the grand prix – an agreement which meant that it was impossible for anyone to die at Albert Park that weekend.
On the Monday morning after the race, the then chair of the grand prix corporation, Ron Walker, did the rounds of Melbourne media. He tried to persuade my ABC Radio Melbourne audience that the track complied with all possible safety rules, and that the wheel going through a gap in the fence was a freak occurrence. He said it was the safest track in the world, which was not true. He did not appreciate being challenged.
Walker then invited the public to contribute to a fund for the Beveridge family. I asked why the public should donate money when both he and Bernie Ecclestone (the billionaire owner of Formula 1) could just dip into their own pockets, instead. He hung up on me live-to-air.
Speed men: Bernie Ecclestone (left) and Ron Walker.Credit:John Donegan
Those events were more than20 years ago, but there are still other fundamental flaws. The disruption to large residential sections of the city is unacceptable and despite years of promises to the locals, it is getting worse, not better.
Twenty-five local sports clubs, representing more than 6000 players of soccer, Australian rules, hockey, rugby, touch footy, sailing, rowing and golf are all shut down at peak time, some of them for months. It is absurd.
I once asked a former premier why the government persisted with the race, despite it being the least successful of our major events. “You have to do something for the bogans” was the surprisingly frank answer.
The race costs Victorian taxpayers about $55 million each year. We have supported it for more than 20 years, thus outlaying a total of more than $1 billion for just 20 weekends of entertainment for a few hundred-thousand people. We should instead invest in attractions that deliver for everyone and all year.
We are the only place in the world to host a tennis grand slam event, a Formula 1 car race, a moto grand prix and an internationally rated horse race. The Boxing Day Test, the AFL men’s finals and special games like ANZAC Day and “Dreamtime at the ’G” add to the buzz that tourism marketers dream of.
We do not need the race in Albert Park. It should move to Phillip Island, and the diehard fans will still flock there as they do for the motorbike races.
But the reality is that in an election year, nobody has the slightest appetite to upset any constituency, let alone swinging-voter bogans.
Most Viewed in National
From our partners
Source: Read Full Article
