$2m in Government money for motorsport park

Taupo's Motorsport Park has won $2 million from the Government to upgrade its facilities.

Yesterday, Economic Development Minister Trevor Mallard and Taupo MP Mark Burton visited the track to make the announcement.

"This investment will give New Zealand a complex that is capable of hosting international racing events which cannot currently be staged elsewhere," Mr Mallard said.

This week people within the Taupo community - including Mayor Clayton Stent and car circuit spokesman Chris Abbott - told the Herald upgrades to the track would mean it could host events such as the A1 GP car racing event and Moto GP motorbike race.

Both are part of a world series of races, and would be expected to draw crowds of at least 40,000 and be televised to scores of countries.

The $13 million track and business park has received significant capital funding from a group of private investors, led by owner of the track MIT Development.

Taupo District Council has also supported the project.

The track was opened in March, and has hosted a round in the NZV8 championship - attracting a crowd of 16,000 over two days.

The $2 million in Government funding will be spread over three years. The grant comes through New Zealand Trade and Enterprise's Major Regional Initiative Fund, a component of the Regional Partnership Programme.

The money will mainly be used build a pit lane complex, media and corporate facilities.

Some funding will go toward track safety features to comply with Federation Internationale De L'Automobile Class 2 standards.

Funding is conditional on the centre securing an international event, but that appears to be only a formality.

MIT development manager Chris Abbott said negotiations for staging A1 GP and Moto GP races were "well progressed".

Track and building upgrades could begin almost immediately, and it was possible the A1 GP could be raced as early as next year, with the Moto GP happening in 2008.

Chief executive of Motorsport NZ, Kerry Cooper, doubted the A1 GP would happen as soon as 2007.

However, he endorsed the track's progress and said it was heartening to see development at what promised to be the country's premium track.

"The Taupo Motorsport Park facilities will be world-class when completed and as good as the best facilities in Australia," Mr Mallard said.

Mr Burton said the circuit's development was great news for the Taupo economy and local jobs.

"Taupo will be a wonderful showcase and this project will also give good spinoffs to the national economy. International media coverage of races would provide huge returns to New Zealand's tourism sector and also highlight its technological and manufacturing prowess."