2017-09-08
Ms PENNICUIK (Southern Metropolitan) — My adjournment matter is for the Minister for Tourism and Major Events, and it relates to the costing of major events. This week it was announced by the minister that the Victorian government will no longer be sponsoring the Logies. The minister said:
We're proud to have been home to the Logies for more than 30 years, but it's time to pass on the baton. No matter where the Logies go, Victoria will remain the cultural and events capital of Australia.
The minister said 30 years. In fact Melbourne has staged 54 of the 59 ceremonies, including 10 years at the former Southern Cross Hotel, four at the Grand Hyatt on Collins Street and the last 10 at the Palladium room in Crown Towers. The minister went on to say the Logies could remain in Melbourne but the state government would not be paying for it, declining to say how much taxpayers had been forking out.
Well, let us say if he is saying it is 30 years, that is $30 million. The minister says:
These things are re-evaluated from time to time, and we know the visitor economy is worth a lot of jobs to our state …
When it comes to the value of events, we have to reassess them all the time, and we would like to accommodate the Logies into the future but unfortunately there comes a time when we have to reassess these events and make our determinations based on the bests interests of Victorians.
He said:
This particular event, the Logies, was not as valuable as other events we've had in the state.
So at an estimated cost of $30 million over the last 30 years, let us compare that with the Australian Formula One Grand Prix. In the last five years, the state government — taxpayers — has forked out almost $290 million to prop up the spiralling cost of the grand prix. The race is set to cost us another $60 million this year and with a further six years at $60 million per year Victorians will have paid three-quarters of a billion dollars from 2012 to the end of the contract in 2023.
Honourable members interjecting.
The PRESIDENT — Order! If that persists, we will take it from the top. So would you like to hear it all again? Ms Pennicuik, probably go back a few sentences at any rate when the two had their interchange.
Ms PENNICUIK — Thank you, President. As I was saying, compare this to the cost of the Australian Formula One Grand Prix. In the last five years, 2012 to 2016, taxpayers forked out almost $290 million to prop up the spiralling cost of the grand prix. With the next race set to cost us another $60 million in addition to $60 million for a further six years, Victorians will have paid three-quarters of a billion dollars from 2012 to the end of the contract in 2023. If you add that to the estimated $400 million up until 2012, then this race will have cost taxpayers $1.1 billion by the end of 2023 at a minimum — because these are only the costs that we know and are publicly released.
So given that we have had this massive saving of $1 million by not hosting the Logies for the next year, I call on the minister to undertake what he said he did in terms of making this decision, which is extensive consultation with stakeholders and a comprehensive event analysis of the Australian Formula One Grand Prix, including a cost-benefit analysis, as was recommended by the Auditor-General 10 years ago.
REPLY on 17 October 2017:
The Government is committed to supporting the Victorian Major Events Calendar, which is the envy of the rest of Australia. The Formula One Australian Grand Prix showcases Melbourne on the world stage, raising its profile, encouraging domestic and international tourism and business investment, as well as delivering economic and branding benefits to Victoria.
The 2017 Formula One Australian Grand Prix attracted around 296 000 attendees, and the Formula One season is broadcast to more than 150 countries around the world each year.
Government has a contract in place to host the Formula One Australian Grand Prix until 2023.
Comprehensive analysis was also undertaken as part of Government's decision to extend the hosting of the event to 2023.