Cash boost tipped to let Taupo host international motor racing events

A Government cash boost tipped to be announced today could pave the way for Taupo to host major international motorsport events within three years.

The Taupo Motorsport Park looks set to be the main beneficiary of a possible announcement from Economic Development Minister Trevor Mallard.

Mr Mallard's office has refused to release any detail, but there is speculation that he will take a big cheque to the town.

If the track is upgraded with the help of Government money, at least 40,000 people could annually flock to the area to watch car and motorcycle races.

Motorsport in New Zealand is undergoing a resurgence, with recent announcements that Hamilton will play host to an Australian V8 touring car event and a round of the World Rally champs.

Taupo District Mayor Clayton Mr Stent said the council had made two applications for $2 million each under the Major Regional Initiatives funding scheme.

"One was for the Clean Energy Centre, and the other was for enhancements to the Motorsport Park so that it is able to qualify to A1 GP and Moto GP standards," he said.

The energy centre is a regional initiative to produce clean alternatives to petrol. As part of the district's need to change land use to protect Lake Taupo's water quality, the centre is working with AgriGenesis to launch a pilot project for ethanol production from Salix (shrub willow) or eucalyptus.

Mr Stent said he hoped today's announcement would cover the energy project and the motorsport park upgrade.

"Any announcement we'll be thrilled with, as it will bring new investment into the district."

Auckland businessman Colin Giltrap has been in talks with politicians about getting an A1 GP event underwritten by the Government.

Mr Giltrap is out of the country, but a spokesman at his business ruled out the possibility of an announcement on such a deal.

Underwriting the event could cost up to $5 million, he said, and the deal was far from done, due to the enormous amount of paperwork involved.

The owner and developer of Taupo's race circuit is MIT Development. Spokesman Chris Abbott said his company had endorsed Mr Giltrap's push to host a round of the A1 GP, but the track needed upgrading.

A pit lane complex was needed, plus several new buildings and track circuit improvements.

"We're a little bit in the dark as well," Mr Abbott said, in reference to what would be announced today.

Track improvements at Taupo could also add impetus to a bid to host an annual Moto GP event, a world championship of motorcycle racing.

The Taupo round would be added to the global calendar, which consists of 17 rounds in 14 countries.

Mr Abbott said about 200 countries took television coverage of the motorcycle event.