Financial good and bad from V8 race

By JULIET ROWAN

The V8 supercar race would bring major economic benefits for Auckland, despite losses in business activity.

The race would generate $36.7 million a year for the regional economy, a report released yesterday has found. But businesses would lose $11.7 million annually, the Market Economics economic impact assessment report showed.

Without the lost earnings, the extra revenue from the inner-city race would total $48.5 million.

Net direct spending by spectators would total $30.8 million.

The money would come from spending on accommodation, cafes and restaurants, retail goods and services, and transport.

Organisers would part with $7.5 million and the race teams an estimated $4.9 million. Contributions by sponsors and media would be $1.4 million and $363,000, respectively.

Auckland has won the right to host the supercar race for seven years from April 2006, but the city council and event promoter IMG must still gain resource consent.

The race would be held on a Friday, Saturday and Sunday each year around a 2.6km circuit taking in Hobson, Fanshawe, Victoria and Beaumont streets.

Parties including Transit New Zealand and North Shore City Council have voiced strong opposition, saying the event would cause chaos on the Auckland Harbour Bridge and motorways. Transit has said peak-hour traffic on the bridge would need to be halved.

The economic impact assessment report found net business output would fall by $20.9 million with the reduction in commuters to the central city. But the short-term effects would be offset by gains before or after the event, the report said.

IMG general manager Dean Calvert said the report did not take into account the benefits for Auckland and the country from the estimated 600 million households overseas who would watch the race on TV.

Such exposure could not be quantified, he said.

The report is part of information being filed with the resource management consent application. Three independent commissioners will consider the application in a hearing expected early next month.