Public V8 report presented to Council

A public report to Council on the V8 Supercar event was released today showing that the total cost of the event over three years has been $27.4m. This does not include commercially confidential amounts such as event sponsorship payments.

The public report gives more detail around the financial information already contained in Council’s Long-term Plan; including costs paid by Hamilton City Council to set up the V8’s, the current book value of V8 assets and operating costs met by Council as part of the overall V8 contract.

The amount released today is made up of $20.3m for set-up costs, $5.1m for operational costs and a $3.5m cost to transition the event to a new promoter (including the payment of outstanding Hamilton-based creditors following the collapse of Caleta Streetrace Management earlier this year).The amount also includes $1.5m in revenue received from the event to offset costs.

Hamilton Mayor Julie Hardaker says she and other members of Council are deeply concerned about the total cost of the event to date.

“It is fair to say that when Council saw the figures in the way in which this latest report shows them, they were quite horrified.

“The result of receiving the information has led us to making a decision to appoint an independent person to audit the systems and processes within Council in relation to how information was provided to the elected wing for decision making,” says Mayor Hardaker.

The $27.4 million also includes approximately $2 million of costs including the development of the Beetham Park rugby ground and money for Frankton beautification that many Councillors felt should not be fully attributed to the V8 event. Assets Council owns as part of the event such as concrete barriers and debris fencing have an accounting ‘book value’ of $6.5 million.

Recent data also shows that 77% of contractors appointed to the V8 Supercars event are local Hamilton businesses providing a full range of services.

Council had previously requested a full report on the cost of the V8 event which was to be finalised immediately after the V8’s were held in 2010. Because of the financial demise of the original event promoters the report to Council was delayed. As a newly elected Mayor, Julie Hardaker asked for the information as soon as possible.

The Mayor says the V8 contract with the new promoter V8 Supercars is to hold the event for the next four years and it is in the best interests of the city that the event is successful and fully supported by Council.