Report: Australian Formula One Grand prix cost 'outweighs benefit'

The cost of the staging the Australian Formula One Grand Prix outweighs its benefit to Victorians, a report to the state government has found.

The Victorian Auditor General's report into State Investment in Major Events found the social cost of staging the 2005 Grand Prix was $69.8 million.

The cost to the community through government agency costs, loss of the use of the Albert Park Lake area, traffic diversion and noise was estimated to be $1.7 million.

Costs to the community did not include losses by local traders.

However, the report says the race may cause some households to spend in different areas.
"The grand prix is likely to increase local spending in Victoria because of the extra spending by interstate and overseas visitors rather than reduce it, " the report says.

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