With reference to an article in the Herald Sun, dated 18 October 2004, which reported that the Premier of Victoria (Mr Bracks) will ask for funds to compensate for the loss of revenue expected after September 2006 when exemptions for motor racing cease under the Tobacco Advertising Prohibition Act 1992:

(1)   Has the Government been approached to provide compensation, subsidies or any other kind of assistance to replace tobacco advertising revenue for the Melbourne Formula One Grand Prix and/or the Phillip Island MotoGP; if so, can copies of the correspondence or records be provided; if not, why not.

(2)   Has the Government considered providing revenue or assistance for this purpose; if so, why and will it do so.

(1)   I have not received a specific request for compensation for loss of revenue consequent on the cessation of the exemption for tobacco advertising for motor racing. However, on 9 August 2005, I received a letter from the Victorian Minister for Tourism, the Hon John Pandazopoulos MP, concerning previous discussions about the possibility of Australian Government support for staging the Melbourne Formula One Grand Prix and the Australian MotoGP. A copy of Mr Pandazopoulos’s correspondence is at Attachment A and of my reply of 30 August 2005 is at Attachment B.

(2)   I am not aware of any Government consideration of providing revenue or assistance for this purpose. The Australian Government as a matter of course works hard to attract major events to this country in view of the benefits that such events generate. To this end Tourism Australia is dedicating resources to marketing Australia as a major events destination and works in partnership with industry and other government stakeholders to leverage such events for tourism promotional benefits. For example, currently Tourism Australia is working with the Australian Government’s Commonwealth Games Taskforce, the Melbourne 2006 Corporation and Tourism Victoria to maximise the tourism benefits of the Melbourne 2006 Commonwealth Games. Tourism Australia is not providing direct assistance to the organisers of the Melbourne Formula One Grand Prix or the Australian MotoGP. However, Tourism Australia has a calendar of events on the recently launched dedicated events website www.events.australia.com. The Fosters Australian Formula One Grand Prix is one such event that is featured on this site.

Attachment A

The Honourable Fran Bailey MP

Minister for Small Business and Tourism House of Representatives

Parliament House

CANBERRA ACT 2600

Dear Minister

AUSTRALIAN FORMULA ONE GRAND PRIX AND POSSIBILITY OF FEDERAL GOVERNMENT SUPPORT

I refer to previous discussions we have had concerning the possibility of Federal Government support for the Australian Formula One Grand Prix and Australian MotoGP events.

During those discussions I gave a commitment to follow up with correspondence detailing the Victorian Government’s proposal.

Please find enclosed correspondence signed on 31 March 2005, but which due to a departmental administrative error, was not forwarded to you.

I apologise for the delay and look forward to your active consideration of this important issue and await your formal response.

Yours sincerely

JOHN PANDAZOPOULOS MP

Minister for Tourism

The Honourable Fran Bailey MP

Minister for Small Business and Tourism House of Representatives

Parliament House

CANBERRA ACT 2600

Dear Minister

AUSTRALIAN FORMULA ONE GRAND PRIX AND AUSTRALIAN MOTOGP

Following our recent meeting, I write to you regarding the provision of Commonwealth Government financial assistance for the future staging of the Australian Formula One Grand Prix (GP) and Australian MotoGp (MotoGP) in Victoria.

The importance of staging these events for Victoria and Australia can not be underestimated. The two Grands Prix generate annually over $180 million in economic benefit as well as creating over 4,000 full-time equivalent employment positions per year.

More importantly, the two events provide massive publicity of the “Australia” brand through the international television broadcast of the events and huge international press coverage. Even the naming of the two events as the “Australian” Grands Prix provides significant promotion of the Australia brand.

Over the course of the next five years, the contracts awarding both events to Australia will expire (2000 for the MotoGP and 2010 for the GP). Prior to this occurring, the Victorian Government will enter into negotiations with the owners of the events to establish their costs with the aim of resigning the events into the future.

The Victorian Government has financially supported both the GP and MotoGP for many years, and as you would be aware, the costs of these events are continually increasing due to escalating rights fees and increasing operational and staging costs.

Given the significant publicity already provided by these events to the promotion of Australia, I would like to raise with you again how the Commonwealth Government can help Victoria in retaining these important Australian events. As part of the Commonwealth Government support, we are sure we can provide additional opportunities such as promotion of the Commonwealth Government’s tourism initiatives and various hospitality and other benefits.

I therefore seek urgent discussions with you in order to identify areas of Commonwealth Government funding to assist with the future retention of the GP and MotoGP in Victoria and Australia.

If you require further information on this issue and support in arranging a suitable meeting time, please contact Mr Ozan Ibrisim, Ministerial Adviser in my office on (03) 9651 9950.

Yours Sincerely

JOHN PANDAZOPOULOS MP

The Honourable Rod Kemp MP

Minister for the Arts and Sport

12 Pascoe Vale Road

MOONEE PONDS VIC 3089

Dear Minister Kemp

AUSTRALIAN FORMULA ONE GRAND PRIX AND AUSTRALIAN MOTOGP

Following our recent meeting, I write to you regarding the provision of Commonwealth Government financial assistance for the future staging of the Australian Formula One Grand Prix (GP) and Australian MotoGp (MotoGP) in Victoria.

The importance of staging these events for Victoria and Australia can not be underestimated. The two Grands Prix generate annually over $180 million in economic benefit as well as creating over 4,000 full-time equivalent employment positions per year.

More importantly, the two events provide massive publicity of the “Australia” brand through the international television broadcast of the events and huge international press coverage. Even the naming of the two events as the “Australian” Grands Prix provides significant promotion of the Australia brand.

Over the course of the next five years, the contracts awarding both events to Australia will expire (2006 for the MotoGP and 2010 for the GP). Prior to this occurring, the Victorian Government will enter into negotiations with the owners of the events to establish their costs with the aim of resigning the events into the future.

The Victorian Government has financially supported both the GP and MotoGP for many years, and as you would be aware, the costs of these events are continually increasing due to escalating rights fees and increasing operational and staging costs.

Given the significant publicity already provided by these events to the promotion of Australia, I would like to raise with you again how the Commonwealth Government can help Victoria in retaining these important Australian events. As part of the Commonwealth Government support, we are sure we can provide additional opportunities such as promotion of the Commonwealth Government’s tourism initiatives and various hospitality and other benefits.

I therefore seek urgent discussions with you in order to identify areas of Commonwealth Government funding to assist with the future retention of the GP and MotoGP in Victoria and Australia.

If you require further information on this issue and support in arranging a suitable meeting time, please contact Mr Ozan Ibrisim, Ministerial Adviser in my office on (03) 9651 9950.

Yours Sincerely

JOHN PANDAZOPOULOS MP

Minister for Tourism

cc. The Honourable Fran Bailey MP, Federal Minister for Tourism

Attachment B

The Hon John Pandazopoulos MP Minister for Tourism

GPO Box 4509RR

MELBOURNE VIC 3 001

Dear Minister

Thank you for your letter of 9 August 2005 concerning Australian Government support for the Formula One Grand Prix and MotoGP.

As you know, major events were discussed at the Tourism Ministers’ Council (TMC) meeting on 19 August 2005. While the minutes have yet to be agreed, I recall that TMC agreed to establish an events working group. This working group would focus on improving the partnerships and coordination associated with branding major events.

I anticipate that Tourism Australia will chair the working group. Once the TMC minutes have been finalised, I will ask Tourism Australia to action this matter.

In regard to financial assistance for major events, the Australian Government is providing significant financial and in-kind support for the M2006 Commonwealth Games, as we did for the Sydney Olympics.

The Australian Sports Commission provides funding for national sporting organisations. It is the responsibility of each sporting organisation to determine its priorities for the distribution of these funds.

I am copying this letter to Senator the Hon Rod Kemp, Minister for the Arts and Sport. Yours sincerely

3 0 AUG 2005

Fran Bailey

30 Aug 2005