Victoria splurges on retaining and securing more major events.

Victoria’s Minister for Tourism and Major Events John Pandazopoulos has confirmed that Victoria State Government’s $52.2 million additional commitment, contained in last Tuesday’s budget will go towards retaining major events, including the formula one Grand Prix, attracting even more new events and building up Victoria’s major events calendar.

Confirming that some of the $52.2 million would be used to retain the Grand Prix, he added that it will also help pay for the Grand Prix’s escalating costs.

In the past five years, the cost of the event to Victorian taxpayers has more than doubled, from $5.9 million in 2001 to $13.6 million last year.

In April last year, Mr Pandazopoulos told State Parliament he had written to the Federal Government seeking funding to assist Victoria hold the Australian Motorcycle Grand Prix and Formula One Grand Prix, partly brought about as a result of the Federal ban on tobacco advertising.

Minister Pandazopoulos said, “The Federal Government needs to think about how it can support us with major events that help put Australia on the map.”  “There is a cost increase as a result of Federal tobacco laws and we agree that tobacco exemptions apply at the moment, but in 2006 tobacco sponsorship will no longer be available for Formula One or MotoGP teams.”

He told the Victorian Parliament, “All we have been saying to the Federal Government is that, in recognition of increasing costs, we think it is not inappropriate that it provide some contribution to these very important events that add about $180 billion to our economy and also add many millions of dollars to the economy in other parts of Australia.”

The Federal Government has refused to help.

Mr Pandazopoulos added that the additional money allocated in the budget would boost the “major events cap” from about $40 million to $55 million a year until 2010 saying, “To capitalise on our success as the events capital of Australia, we will provide an extra $52 million over four years to maintain and build Victoria’s major events calendar.”

 He said the Bracks Government had increased funding for major events from $20 million under Jeff Kennett’s government to about $55 million.

Victorian Major Events Company chief executive Peter Abraam also confirmed that the State Government is sending its top major events salesman to the World Cup in Germany, to discuss Australia’s case for hosting the event, investigating Australia’s and more importantly Victoria’s case with Football Federation Australia officials in Germany next week.

Minister John Pandazopoulos said a bid would cost tens of millions of dollars and would need to be Australia-wide, but Victoria would push for a Melbourne final.  He called on the States, Territories and the Federal Government to start discussing a bid, adding, “We need to start thinking and planning and affirming if that is what we want to do”.  “Do we go for 2018 or do we go for 2022?”

A Report by The Mole