New South Wales Auditor-General Peter Achterstraat
NSW Auditor-General, Peter Achterstraat, releases his report –
State Investment in V8 Supercar Races at Sydney Olympic Park
Victor P Taffa
The Auditor-General, Mr. Peter Achterstraat, today released his report on the Government’s investment in the V8 supercar races at Sydney Olympic Park.
“The V8 Supercars race at Homebush Bay was managed well on the day and by all reports the spectators enjoyed themselves. But a good day out is not the same as a good deal.” Mr. Achterstraat said.
The Government’s negotiating position was weakened by public reports in July 2008 about the Government’s in-principle support for the event at Sydney Olympic Park. It was not until ten months later, the Government and the promoter negotiated an agreement.
“Negotiate first, announce second not the other way around.” Mr. Achterstraat said.
“Initial advice to Cabinet in June 2008 was based on limited analysis and consideration of options.” Mr. Achterstraat said.
The V8 major event is not a financial success for the Government.
“The five races are estimated to cost $10 Million more than planned and provide nearly 25% fewer benefits than expected.” Mr. Achterstraat said.
“This is one major event that we can learn from.” Mr. Achterstraat said.
Government involvement in major events in New South Wales needs to be better managed. Experts such as Events NSW should be used and proper business cases should be prepared.
“The Government should get the best possible advice from its experts on assessing and negotiating major event proposals.” Mr. Achterstraat said.
“There needs to be a more consistent and accurate costing of events by all agencies, and detailed reporting on major event performance.” Mr. Achterstraat said.
Mr Achterstraat summarised the report by stating:
“NSW needs major events to help attract tourism and investment. Negotiation and subsequent management of those events needs to be done with the benefit of the NSW taxpayer in mind. A clear direction, and an agreed set of guidelines, must be developed for major events in NSW.”
Supporting Data From Report
Government agency costs (in addition to the $26.5 Million paid to V8 Supercars Australia)
Budget estimate for
Value in-kind included by AO
Difference between Budget & AO
|Sydney Olympic Park Authority|
|State Development/ HMRA|
a from Budget Impact Statement of September 2008
b based on recent advice from agencies and including invoiced and in-kind costs
c trains, buses and co-ordination
d transport costs are net of the transport subsidy of approximately $720,000 per annum paid by V8 Supercars Australia.
Estimates Of Direct Expenditure By Visitors Attending The First Supercar Race
Date of analysis:
April 2009 & March 2010
Decrease in visitors’ spend 2008 to 2009
|Estimated expenditure by interstate and overseas visitors|
|Estimated interstate & overseas visitor numbers|
Source: State Development economic analysis
Event Key Performance Indicators (KPI)
Deed target for 2009
Market research result for event
Note: * This figure is for individual attendees over the three days of races. It is not the figure for their multiple attendances over the three days, which was estimated to be 151,000.