The Government will invest up to $2.2 million on infrastructure upgrades for the V8 Supercars event in Pukekohe, Economic Development Minister Steven Joyce announced today.
Auckland Council this afternoon voted to bring the V8 Supercars back to Pukekohe Park Raceway at a cost of $10.6m to ratepayers.
The proposal, heard behind closed doors at a strategy and finance committee meeting, was passed nine votes to five.
The council's events arm recommended Auckland pick up the pieces from a fiasco that cost Hamilton ratepayers $40m.
Mr Joyce said the Government's funding was conditional on contributions from V8 Supercars and Auckland Tourism, Events and Economic Development.
He said it would help fund the upgrade of the raceway and deliver a cumulative return for New Zealand over the minimum five-year period the V8 Supercars are guaranteed to be held in Auckland.
"An independent study shows that the V8 Supercar events will contribute around $7m to Auckland ... in the first year and generate just over 50,000 visitor nights per annum."
The Auckland contribution is coming from the city's major events development fund, which has a budget of $10m per year.
The upgrades are due to be completed in time for the Auckland round of the 2013 championship.
It has been reported that a full risk review of the proposal was not provided to councillors before the vote, only a summary. Auckland Tourism, Events and Economic Development said the risks were not substantial enough to decline the proposal.
