Many Herald Sun readers are angry more than $30 million is going to Bernie Ecclestone and his company in licence fees to stage the Grand Prix. Source: Herald Sun
THE Baillieu Government has vowed to cut Grand Prix costs further after it was revealed the race's licence fee is now more than $30 million a year.
Both sides of politics have vowed to continue supporting the event, saying it is crucial to the state's major events calendar.
Tourism Minister Louise Asher declined to comment on the secret Ecclestone licence fee - revealed in yesterday's Herald Sun - but said taxpayers had footed a big overall bill for the race.
"We think the taxpayer subsidy is too high, under the contract signed by the previous Labor government," she said.
"We are attempting to work within that contract to get some of the costs down."
She said the Government would negotiate a new contract for Melbourne to host the race after 2015, and would seek a better deal for taxpayers.
"That is precisely my responsibility as minister - to assess what is good value for taxpayers (and) to preserve Victoria's tourism status in the world," she said.
"It will be on (the Baillieu Government's) heads, in terms of the contractual negotiations that we undertake in the future."
Ms Asher said "overall, the Grand Prix has proved to be fabulous for Melbourne".
Grand Prix Corporation chief executive Andrew Westacott responds to revelations that Victoria pays $30 million a year for the rights to stage the Grand Prix in Melbourne
"It has branded us, given economic benefit, it employs people, it adds excitement," she said.
"In terms of tourism, Sydney has the Opera House, Queensland has the Great Barrier Reef, central Australia has Ayers Rock. We in Victoria, both sides of politics, have tried to position Melbourne as a major events capital."
Many heraldsun.com.au readers were angry that so much of their money was going to billionaire Bernie Ecclestone and his company.
But Shadow Treasurer Tim Holding backed the Government pursuing the event for Melbourne after 2015, saying it was a truly "blockbuster" event that boosted the state.
"The cost borne by taxpayers by far and away is outstripped by the economic benefits to Victoria," he said, insisting the race still represented excellent "value for money".
Mr Holding and Ms Asher denied anyone from their parties were involved in leaking the details of Mr Ecclestone's fee.
The Herald Sun was unable to contact Mr Ecclestone. Victoria Events Industry Council chief executive Dianne Smith said the GP "delivers a combined annual economic impact of more than $1.4 billion".
"The Formula Money report last year assessed that the race alone has generated exposure for Melbourne valued at $816 million in the past four years," she said.
"The Australian Grand Prix attracts a large international television audience with millions of people from more than 150 countries across Asia, Russia and surrounding countries, Europe and Latin America, tuning in."
matthew.johnston@news.com.au
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