Why am I not surpised re: Melbourne GP?

[Rob W]

I read this article with interest as someone who goes to the Aussie GP most years - ... http://www.planet-f1.com/story/0,18954, ... 58,00.html

Why am I not surprised that the "Residents have had more than enough of F1" comments were made by a woman. How could she possibly grasp the huge importance of F1 ha ha?

Her argument about the "public price tag blew out to A$41.3million" is redundant - every sporting host city on the planet gains massive economic benefits for being a host well beyond the amount it costs to be a host.

I stay less than 100m from the track and have never once heard anyone complaining about the noise. Maybe the traffic disruption... but the sense of excitement is always great.

R

[WhiteBlue]

40 million seem to be a serious issue to me. you also have to consider that we are probably talking 10% more each year and comitting for five years. So we are looking at 260 million. A very public debate will follow whatever the governement decides to do wether they loose the GP or they pay the money. Many serious people have said that the GP is lost and I'm inclined to believe they are right. if this money were for infrastructure investment one might find a way to justify it. but this is straightforward money burning for the éntertainement of a minority. I would love to see the GP continue but the economic basis does not seem to be there.

[ernos5]

lol yer i actually sent her hate and death threats by e-mail yesterday, and told her to move it back to Adelaide (where i live at the moment) so yer, see what happens

[zac510]

lol yer i actually sent her hate and death threats by e-mail yesterday, and told her to move it back to Adelaide (where i live at the moment) so yer, see what happens

Thanks, you put on a great example for F1 fans everywhere.

[ackzsel]

lol yer i actually sent her hate and death threats by e-mail yesterday, and told her to move it back to Adelaide (where i live at the moment) so yer, see what happens

Well, I hope that's a joke. But even if it is it's not a very good one and probably illegal (besides the fact that it's a bit cruell to the woman in question).

[Rob W]

Just to clarify to all - I started the thread in good jest poking fun that the person making the song and dance is a woman... With woman historically not giving a rat's arse about motorsport, nor getting how just how important motorsport is to the world economy, preventing wars, saving whales, education, healthcare, crime reduction, cancer research, action films and beer amongst other things.

They. just. don't. get. motorsport.

R

[Rob W]

40 million seem to be a serious issue to me. you also have to consider that we are probably talking 10% more each year and comitting for five years. So we are looking at 260 million.

The thing is that public fork-outs for these things are money making exercises, not costs... people only tout the costs when they're in the anti, but the reality is the number of hotel-rooms, meals served in restaurants, transport taken, beers drunk etc stimulates many time the investment value for the local economy. Unfortunately, when you put this argument, even with the economic benefits to compare, some people still just don't see the point.

Having said that, not everything can be accounted for in dollar terms and I totally see how the loud noise may annoy the crap out of many people.

R

[Fridge13]

i went to the GP this year, i spent a total of around 5grand for 2 weeks in Melbourne. I dont know the figures, but it must inject loads of money into the Victorian economy. Like Rob said, most women just dont get motorsport.

[ernos5]

lol yer i actually sent her hate and death threats by e-mail yesterday, and told her to move it back to Adelaide (where i live at the moment) so yer, see what happens

Well, I hope that's a joke. But even if it is it's not a very good one and probably illegal (besides the fact that it's a bit cruell to the woman in question).

nah dude it's true, no joke, i actually did send it to her. So b#$lshit, she has no clue on how big Formula 1 is. You can't take away something like that, it's like making her live the rest of her life without makup and grey hair, she'd never do that, so they can't take F1 away simple, for a statement like that, she fully deserves the hate mail.

[ernos5]

lol yer i actually sent her hate and death threats by e-mail yesterday, and told her to move it back to Adelaide (where i live at the moment) so yer, see what happens

Well, I hope that's a joke. But even if it is it's not a very good one and probably illegal (besides the fact that it's a bit cruell to the woman in question).

nah dude it's true, no joke, i actually did send it to her. So b#$lshit, she has no clue on how big Formula 1 is. You can't take away something like that, it's like making her live the rest of her life without makup and grey hair, she'd never do that, so they can't take F1 away simple, for a statement like that, she fully deserves the hate mail.

[WhiteBlue]

I don't know what the profit rates and tax rates are in the general economy in Victoria. But lets assume that people make 15% before taxes and that the govern ment takes a third of that. It would mean that for every dollar spend the government gets 5 cent. With that crude formula your would have to generate 800 million additional sales by a Grand Prix for the government to break even. lets assume that we have 200.000 race visitors with an average spend of one grand. We would be still only be generating 200 million sales. You see that from a public economic view the race would not stack up.

[Rob W]

I don't know what the profit rates and tax rates are in the general economy in Victoria. But lets assume that people make 15% before taxes and that the govern ment takes a third of that.

...It would mean that for every dollar spend the government gets 5 cent...

...lets assume that we have 200.000 race visitors with an average spend...

The economic benefits go well beyond this though. The GST (goods and services tax) alone is generated over and over from the same initial outlay. Moreover the race visitors create employment far beyond the money spectators pay for goods and services. If you factor in things like travel - of 100,000 plus people, all of the extra holiday activities they do when they're there etc - it is of massively positive benefit to the Victoria economy.

The money-go-round of consumer spending compounds the GST take for the government also - meaning after the initial 10% (not 5) they get it again and again in income tax from workers (Aussie has more like 25% income tax) who's employment exists only because of the grand prix... not to mention the businesses which exist year-round off the back of the short F1 week.

R

[WhiteBlue]

I don't think that GST piles up on the various stages of a final job. At least in the VAT tax models I know we have deductable taxes. It means you only pay tax on the value you add or the other way around you are taxed on the profit you make. if there isn't profit making here isn't taxation in the end.

[Rob W]

I don't think that GST piles up on the various stages of a final job. At least in the VAT tax models I know we have deductable taxes. It means you only pay tax on the value you add or the other way around you are taxed on the profit you make. if there isn't profit making here isn't taxation in the end.

For sure, it is claimable... but I doubt many businesses survive long without being able to increase the value of products.

Trust me, there is much more to economic benefits that just calculating how much each person is likely to spend. Every person gainfully employed (assuming net migration doesn't affect it) because of an event is money in the pocket of the govt in income tax, taxes from their daily transport, food GST etc etc etc. That's why it is referred to as a money-go-round.

R

[WhiteBlue]

sorry, I rather trust the economic laws. unless you convince me that key assumptions in my model are inappropriate I prefer to believe that I have made a valid back of an envelope calculation.

if there is controversy about the running of a GP due to noise issues there should at least be a neutral economic impact or the chances are really slim. I would like to see the race continue and don't personally care whether it is a night race. I just think there is no point in kidding yourself and get frustrated when the thing collapses. too many people with common sense have said its not viable.