The 2024-25 Victorian budget was handed down in the past 24 hours, forecasting that state debt will peak at almost $190 billion in 2028 despite major spending cuts/delays.
Absent was any spending on major sport infrastructure projects, including the ‘super circuit’ which Motorsport Australia CEO Sunil Vohra previously hoped to see in a construction phase by the end of this calendar year.
However, that does not mean doom and gloom for the Avalon project, according to Vohra.
The Victorian Government is said to remain supporters of the project and he reasons that Motorsport Australia can now take stock and present an even stronger case over the next 12 months.
“That’s what we did expect would be the outcome for this budget,” Vohra told Speedcafe.
“So, it’s not unexpected. We’ve been working with the minister [Steve Dimopolous, Tourism/Sport/Major Events], his department around both leading up to the budget announcement and very much with a view to the next 12 months about continuing progress with the investment case.
“We have several meetings planned with him and his team about how to do that.
“What we’re looking to do is continue progress to have a good go at the next round of budget allocations next year, and do it with an increased focus on the benefits of the investment to the state of Victoria overall, and to motorsport.
“The process that we used leading up to this budget was part of the Treasury process. It’s quite narrow in what it allows us to be able to speak to and focus on.
“Now we’re essentially able to talk to some broader upsides and benefits to the region, and to the state overall, of this investment.
“The minister has talked about [how] he’s very keen to understand those in more detail; we’re keen to share them with him and his team.
“It was always different pathways as to whether funding would happen this year, whether it would be in future years, and therefore it changes the timeframe.
“Clearly, given just the context of the Victorian budget, at the top of the cycle of interest rates in a high debt environment, it’s very difficult to add more debt to that around infrastructure investment.
“So, we understand the context, we understand the position, [and] clearly, we’re disappointed we couldn’t still find a way.
“This is a shovel ready project, we’re ready to start the construction phase, we’re disappointed there wasn’t a way to be able to do that, but we certainly understand the government’s position.
“They continue to be really strong supporters; the entire department that we engage with [Department of Jobs, Skills, Industry and Regions] are strong supporters of the investment in the Avalon precinct for motorsport.
“So, we’re confident for the future, but we just appreciate we’ve got some short-term bumps around the current budget contexts to get through and go again next year.”
The Home of Motorsport would be built on Linfox-controlled land near Avalon Airport, located between Melbourne and the city of Geelong.
But for suburban Sandown, which is widely expected to be lost housing development in coming years, the new Avalon facility would be the nearest circuit to Melbourne which is capable of hosting Motorsport Australia-sanctioned, national level motor racing (noting Calder Park is licenced again for state racing) and international competition.
With Motorsport Australia having control over Avalon, it is being touted as a facility which could be used for training officials training in a simulated setting as opposed to theoretical, to provide better access for clubs, and for STEM (science, technology, engineering, mathematics) education – not to mention high-level, professional motorsport.
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