Australia downplays relocation talks

Reports on the Australian Nine Network earlier this week claimed that race boss Ron Walker and Formula One supremo Bernie Ecclestone had talked about shifting the event from its current home at Albert Park after its current contract expires in 2010.

But reacting to those reports, Victorian Government Premier John Brumby said that no talks had yet taken place. He admitted, however, something needed to be done to cut the financial losses of the event.

Speaking to The Age newspaper, Brumby said about Flemington Racecourse: "It's certainly got great merit as a horse racing track, and it's fantastic for the Spring Carnival.

"But really, there hasn't been discussions and I'm not going to pre-empt those in any way, shape or form or offer a personal opinion on that."

Brumby admitted that the Government was concerned about the financial situation surrounding the Grand Prix.

"When this event first started, the then government, then premier [Jeff Kennett] promised that there would be no cost to the state, that it would always break even or make a profit," he said.

"The reality is, it's never made a profit and it's gone from a loss of (£750,000) now to a loss of (£15.5 million)."

He added: "I've made it clear I think it's a great event for Victoria, but the costs of it have continued to increase, so if we're to keep the event in the future, we've got to address some of those cost issues."