Ratepayers expected to fund costly Pukekohe V8s
"Is there no end to the idiocy of councils getting involved in such ventures. No wonder ratepayers have had a gutsful."
Featured commentPukekohe businesses want to cash in on V8 Supercar racing, even if it will cost Auckland ratepayers $10.6 million over five years.
Auckland Council's strategy and finance committee meets on Thursday to approve spending to support a V8 Supercars Australia bid to start racing again at Pukekohe.
An annual round of the supercar competition was held at the raceway between 2001 and 2007, when it was relocated to a street circuit in Hamilton.
Late last year, Prime Minister John Key was approached about an alternative to the Hamilton event which held its last race earlier this year.
Last year, Audit New Zealand's report into the Hamilton event was scathing, also laying blame on the Hamilton City Council, identifying:
The absence of a comprehensive and integrated approach to the entire event, ranging from the absence of a business case and due diligence on the original event promoter, to
The absence of whole of event project management disciplines, risk management and reporting, and financial management reporting, to
Challenges with governance and reporting which was through a sub-committee rather than a committee of the whole, to
Challenges with contract negotiation, execution and variance reporting.
The Auckland Council committee will look at approving a one off $2.4 million capital grant towards park upgrades, another $2.75 million levy to be retained by Auckland Tourism, Events and Economic Development (ATEED)and a $5 million sponsorship fee over the five years to be paid to V8 Supercars.
Pukekohe Business Association manager Kendyl Gibson told NBR ONLINE businesses are likely to see a huge increase in visitor numbers.
"Businesses don't see an increase in activity while the racing is on but people are going to need food and accommodation," Ms Gibson said.
"The Super Rugby match between the Chiefs and Lions at Pukekohe in May saw local restaurants and businesses rushed off their feet."
"Pukekohe may once again become known as the home of motorsport."
Auckland Council's agenda, released today – well after a release from Mayor Len Brown, states the council's "never previously invested in capital upgrades for the purpose of events, with the exception of Rugby World Cup".
It believes "this could set a precedent for future events".
Keen to push the positives, Auckland Council believes it would produce a return on investment of more than $7 million and that it would bring in an extra 50,000 visitor nights.
ATEED is confident it won't repeat those mistakes, saying throughout last year's Rugby World Cup, it demonstrated its ability to manage, complex, multi-year, multi-project events.
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Comments and questions13
Is there no end to the idiocy of councils getting involved in such ventures. No wonder ratepayers have had a gutsful.
this is possibly a good business proposal , no assets sold and a good return , whats the problem ? NZ is tourism ? or are we to busy with livestock misbehaving ...
Ten minutes down the road Hampton Downs is a world class track - the only requirement it would have is consent to increase spectator numbers from the current 20,000 to whatever was required. Their track is 270 m, Pukekohe is 280 m. Hampton Downs has resource consent o extend the track to 380 m..... its a no brainer. Auckland can still cash in on visitors and so can Hamilton - may even get some of their $40 m loss back.............. What planet are these politicians on as they spend more and more of our money on events which, if they went to a vote, wouldn't get past the door,
Yes a no brainer with the stats you have just stated most of our councils are sitting around having meetings on how to extract more money from us to give each other ridiculous saleries
Anon: Sorry, you clearly have not been to a genuine V8 Supercar Event and also to HD. HD is a great track, but presently has more issues to solve to get to the necessary standard than can be addressed before next year. Puke is the best option available, on a binary basis (either we have a round, or we don't).
Pukekohe has been ignored for too long...at least spectators can spend at the local businesses including cheap and fresh local produce as well.
You should look at the broader opportunity, to have the V8 racing in down town Auckland and combine it with a motorsports showcase such as Bavaria City Racing in Dublin or Rotterdam that have demo teams from F1, open-wheel and rally cars. It will attract a lot more people, and will be beneficial for Auckland as a city from a tourism perspective.
Wouldn't they first have to explain how it cost the late Franklin District Council exactly NOTHING to host the V8 for 6 years before they can justify wasting $10million on fees, levies and other parasitical sundries?!
The V8's will come to Pukekohe for nothing (because they have no-where else to go) ... don't give the extortionists a cent!
The ARC must have put something in.
We would have had a great spectacle in Auckland city if it had not been for Hubbard and his socialist greenie mates...talk about self interest and commercial ignorance. Auckland can hold a street race based around the Victoria Park area. Surfers Paradise closes half of Cavill Ave (the main road through Surfers for three days...are we so precious and Auckland so big and important that we could never close one motorway off-ramp and that imediate area for 2 week days and a weekend. Get a life!.... Melbourne and the Formula 1 Grand Prix.... roads closed bordering their CBD...and it works bringing in tens of millions of dollars. Forty million was the forecast injection into the Auckland economy for a street race....but of course socialist greenies don't understand basic economics do they. I guess with another of that ilke in Len Brown, pigs will fly before we have an event in Auckland such as the Aussie touring cars.....Is it no wonder the Aussies take the p**s out of Kiwis...we deserve it.. Pukekohe is a 'dog of a track' (having raced on it many times) It is rough; the drainage is shocking; the pits are something out of the 'Fifties'; With the horsey fences you can't see anything other than the tops of the cars going down the backstraight (even sitting high in the grand stands); the over bridge (who was the mental giant that thought that one up) obstructs the view of the cars coming over the 'hill' on to the start/finish straight. (should have been under track access for both cars and spectators (like Hampton Downs). Forget Puke and if it must be a track and not a street race give it to HD. First choice though must surely be a 'downtown' Auckland street race. Go on Len, you're all for fulfilling your UN bosses wishes (Q21) to get the population on to public transport and the underground rail is part of your UN 'brief'....... breakout and defy them by approving a street race in Auckland.... You certainly waste rate payer money on 'junkets' to China, Pacific Islands, etc, Maori cultural greeting parties for any occassion other than eating a sandwhich at lunch time. Tell the rate payers how much these BS 'cultural' performers cost..there would be riot if the public were to find out. All those in favour for a street race in Auckland say yeah.
No, dumb a*se.
Wow..Anonymous.....intelligence personified!! You must surely have some intelligent comment to make.......go on you can do it!!....you can if you really try hard.
No sporting event should take priority over the well being of a city's citizens.
Put it this way we have 1000's out of work and even more people close to the breadline and the council funds this shit.
To all the councilors who voted for this pull your heads out of your as*es.