Proposals For Grand Prix Track At Racecourse

Press, Volume CI, Issue 29722, 16 January 1962, Page 4

Proposals For Grand Prix Track At Racecourse

"The Press’* Special Service

MATAMATA, Jan. 15.

The effects of proposals to run future Grand Prix motor races on a circuit at Pukekohe racecourse are being studied by the Franklin Racing Club and the Grand Prix Organisation. No firm arrangement has yet been entered into a? legal documents protecting - both parties are being prepared at present. The racing club’s property has a Government valuation of about £125.000. None of this could be offered as security for raising money for another sport and the Grand Prix Organisation must raise finance independently. The racing club has a fairly large farm property adjoining the racetrack and land outside the race circuit. The motor circuit would cut through this land and must be laid down so it does not touch or cross the horseracing track. The racing club does not want to do anything that will restrict the continued growth of Pukekohe as a training centre. This is good business as the business community of Pukekohe gains about £45,000 a year from the money spent on gallopers in training. For this reason the club will seek guarantees that construction work on the motor circuit will not affect the training of horses. Apart from Grand Prix day, any sports clubs using the motor track could not start their fixtures until galloping training finished. When the final proposals are put to the racing club one of the main issues will

be the net profit available from the venture. The Grand Prix Organisation will have to guarantee buildings and fixtures against damage, and measure of hidden costs is continuing.

Depreciation on property worth £125,000 would be several hundred pounds each time it was used. For instance, there is a'minimum fee of £5OO charged by a racing club when a sister or trotting club uses its course. This includes the hidden cost of usage by many persons.

The racing club will lose heavily on its farming Income during the year of construction, and permanently in some degree. Last year the, farming income was £2OOO. In other years it has not been high. Some predict a drop pf about a third of this if the proposed changes are made. On the credit side the racing club will be given a guaranteed rental, undisclosed, but believed to be substantial. The Grand Prix Organisation will gain a permanent home and the use of stands and facilities.

The racing club’s next ordinary committee meeting is in mid-February and by then both parties will have all available facts.