• Enhancement Plans for Albert Park Began Prior to the Grand Prix
• Parks Victoria Spent Over $14 Million on Albert Park 1994-1996
• Costs of the Grand Prix Plans to Other Melbourne Parks
• The Grand Prix Has Led to a Blow-out of Costs in Albert Park
• Cost of the Grand Prix Plans to Park User Groups

ENHANCEMENT PLANS FOR ALBERT PARK BEGAN PRIOR TO THE GRAND PRIX

December 1991	Development plan - Albert Park - The Vision was released by the Department of Conservation and the Environment.
June 1992	$5.0 million program to dredge lake and improve recreation amenities commenced (Government Officer, 20/9/95).
November 1992	Under Kennett Government Melbourne Parks and Waterways (MP&W) issued a brief for a Master Plan for the Park. The Hassell Group was appointed to produce, with public and park user consultation, a development strategy.
December 1993	MP&W released the Albert Park Draft Strategy Plan. This plan contained no reference to the Grand Prix.
17 December 1993	Kennett announced plans to build a Grand Prix race-track in Albert Park.

The December 1993 Draft Strategy Plan proposed a staged upgrading program, which would have required modest capital funding, and the redevelopment of the indoor sports facilities. Refusal to fund this plan would have constituted a change of Government policy and neglect of an acknowledged public asset.

PARKS VICTORIA SPENT OVER $14 MILLION ON ALBERT PARK 1994-1996

In the two financial years of 1994-95 and 1995-96 Melbourne Parks & Waterways (now Parks Victoria) spent over $14 million on the Park (The Age, 22/7/96). The works include:

Projects	Expenditure $
Tree Planting	294,000
Palm Moving	172,000
New Pavilions	3,588,000
Pavilion Upgrade	458,000
Carparks & Roadworks	2,432,000
Landscaping	427,000
Facilities and Services	3,364,000

On top of this the Department of Premier and Cabinet has invested $65 million in the Melbourne Sports and Aquatic Centre (MSAC).

In addition to these expenditures, Park tenent have also invested in facilities.

• Upgrading of the Golf Course ($750,000), construction of the Point restaurant, and establishment of a Golf Driving Range have been financed by the lessees;
• Parks Victoria expects sporting clubs to contribute to the fitting out of new pavilions and also pay higher rentals.
• City of Port Phillip, park user groups, and Sport & Recreation Victoria spent $800,000 on a synthetic hockey/tennis centre.

COSTS OF THE GRAND PRIX PLANS TO OTHER MELBOURNE PARKS

Reports that the rush to reorganise Albert Park in readiness for the 1996 Grand Prix absorbed funds at the expense of the other 40 parks managed by the then Melbourne Parks and Waterways seem to be well founded. The $14 million accelerated capital works program for Albert Park constitutes over 60% of the total capital works budget of $21.482 million for MP&W over the two budget periods 1994-95 and 1995-96 (1994-95 and 1995-96 Budget Information Paper No. 1).

If the allocations for land purchase and Lower Yarra waterfront works are deducted, Albert Park appears to be receiving over 80% of capital funds for park enhancements, although it constitutes only 225 ha. of the 3958 ha. of parkland under the custodianship of MP&W (MP&W Annual Report 1995).

While the capital works program of Parks Victoria involved upgrade works which were needed in the park, the additional $50 million spent by the Australian Grand Prix Corporation was outside the draft Strategy Plan for Albert Park and contributed little to the enhancement of the park.

THE GRAND PRIX HAS LED TO A BLOW-OUT OF COSTS IN ALBERT PARK

The Victorian Government committed a total of over $50 million for capital works in Albert Park over 1994-1996; this sum does not include the $14 million spent by Parks Victoria (formerly MP&W) or the $65 million for the new Melbourne Sports and Aquatic Centre.

The hasty conversion of the Park into a semi-permanent Formula One circuit has resulted in huge additional and wasteful costs. We know that:

• Department of Arts, Sport and Tourism allocated $48 million for works and reorganisation of the Park;
• VicRoads has spent $2.9 million on road works consequent upon the new track alignment;
• MP&W was forced to give rental holidays to commercial tenants in the Park during the construction period, estimated to be worth at least $200,000;
• MP&W lost an estimated $160,000 in green fees as a result of disruption to the golf course during track construction;
• Reinstatement of the Park after the race in 1996 was expected to cost at least $1 million.

After only two races, the Grand Prix has accumulated operating costs of over $18 million, not including depreciation costs of the track and pit garages. The event has generated no funds for the upgrade of the Park.

The Government and Australian Grand Prix Corporation have wasted valuable funds on:

• Removal of over 1050 trees worth several millions of dollars;
• A total reconstruction of park roads has required radical reorganisation of sports fields and golf course, and demolition of one of the newest pavilions not previously recommended for replacement;
• Construction of an additional pit road, concrete underpasses, and service roads;
• An $11 million intrusive permanent pit building equivalent to about 60 three-storey houses in the middle of the main area of remaining open parkland;

Construction of mounds which will be used as viewing facilities for the four-day Grand Prix only. They represent an effective loss of open space for the remainder of the year.

Such expenditure cannot be justified when health, community services and education need funding.

COST OF THE GRAND PRIX PLANS TO PARK USER GROUPS

Now that the Grand Prix has been held the full cost of the event is becoming evident:

• Clubs lose the use of home grounds for matches and practice for over 4 months each year over the total Grand Prix preparation, race week and dismantling period;
• Following the Grand Prix 10 clubs have been unable to use grounds for up to 12 weeks because of damage resulting from the Grand Prix and the rushed reorganisation of the sports precinct;
• Annually golfers lose access to the public golf course for 5 weeks, the bowling club and tennis club are denied access for up to 2 weeks, and the indoor sports facilities are closed for the week;
• Clubs face higher leasing and renting charges to fund the level of investment;
• An anticipated 25,000 people will be denied use of the $65 million Melbourne Sports and Aquatic Centre each year.

The next economic evaluation of the Grand Prix must recognise the loss of these recreational facilities and estimate the social costs involved.

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