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F1 GP in Melbourne in Jeopardy? (Read 2,219 times)
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F1 GP in Melbourne in Jeopardy?
Nov 12th, 2010 at 7:17am
 
There is an organization in Australia that is the same as our ASN-FIA which handles the racing permits, driver licensing, and most other aspects of racing in Australia. The main difference here is we have provincial bodies like CACC which are delegated to handle the local stuff.

When I raced in Australia I had a CAMS racing license, much like the CACC one I have now, so for some reason I'm still on their mailing list, 8 years later.

I received the following e-mail from CAMS to it's members (obviously past and present) outlining their issues with AGPC (Australian Grand Prix Corporation) who puts on the Melbourne F1 race. It makes for some interesting reading. I have my own opinion on the intelligence level of the AGPC guys, but I'll let you come to your own conclusions.

IMPORTANT LETTER TO CAMS MEMBERS AND ACCREDITED OFFICIALS

Dear CAMS Colleague;

You may have seen the media reports surrounding the current dispute between the Australian Grand Prix Corporation (AGPC) and CAMS.

It is important you understand the reasons behind the dispute.

CAMS has, over many years, performed a number of roles involving the AGP including acting as Sporting Organiser, issuing the Permit for the race and all the support races and activities, providing certain insurances for officials, applying for FIA calendar listing, ensuring compliance with FIA standards, authorising FIA track inspections and many other tasks. For this CAMS received a fee which was calculated to equate to the total costs CAMS incurred in its involvement with the AGP.

In August 2010 after months of negotiation CAMS’ and AGPC's Chief Executives reached agreement on a proposal which was put to AGPC's Board. However that proposal was rejected by AGPC's Board.

Following this rejection, and without warning, AGPC demanded a significant cut to which CAMS responded with a further reduction. This was subsequently rejected by AGPC.

To put the current dispute in context, the cost to AGPC of CAMS' services is less than 0.625% of the AGPC's annual budget and the difference between CAMS’ proposal and AGPC’s position is less than 0.1% of AGPC's annual budget.

For CAMS to deliver further reductions, it would have had to “subsidise” the AGP from other member activities or from members’ reserves. This it could not justify. Accordingly it refused to agree to what it believed to be an unreasonable demand and subsequently AGPC has decided to try to “go it alone”.

CAMS has invested extensively in developing and training its officials over many years and has produced one of the world’s best officiating teams for the Australian Grand Prix. You should be rightly proud of your achievements and the regard in which you are held internationally.

Officiating has provided thousands of CAMS members with unforgettable experiences – which in recent times have been extended to include the Singapore and Korea Grands Prix. These are the rewards of membership in an organisation where people work together with common purpose and a passion for the sport.

CAMS has been the organiser of the Australian Formula One Grand Prix since 1985 in Adelaide and since 1996 at Albert Park in Melbourne.

CAMS' annual fee to organise the Australian Formula One Grand Prix is substantially less than the AUD$800,000 or £500,000 stated in some reports.

This is principally an issue about safety and not fees and we do not believe the Australian Formula One Grand Prix can be run safely without the high degree of professional and safety expertise that CAMS can deliver.

CAMS and the FIA have also received the advice of Senior Counsel that their actions in putting a fair proposal to the AGPC in no way contravene Australian competition law or are in any way inappropriate.

The FIA requires that a Grand Prix may only be organised in Australia if CAMS is prepared to sign an Organisation Agreement with the FIA. At CAMS request the FIA has extended the deadline for CAMS to confirm it will sign such an agreement until November 19. Under FIA rules, without CAMS agreement as ASN, the AGP will not be conducted.

The Victorian Government has been kept informed of developments.

Moving forward on this issue, CAMS greatly appreciates the solid support and dedication of our members and officials. CAMS is committed to resolving this issue with the AGPC and once again fielding a team of officials at the Formula 1 Australian Grand Prix that we can all be immensely proud of.

I am certain that you as a CAMS member do not wish to see member funds used to subsidise this event and I am equally sure that you do not want your Confederation to be bullied into an agreement which is not justifiable.

Yours sincerely,

David Morgan

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Re: F1 GP in Melbourne in Jeopardy?
Reply #1 - Dec 3rd, 2010 at 5:08am
 
It looks like the issues in Melbourne have not only been resolved, but CAMS has landed some nice concessions:

CAMS and AUSTRALIAN GRAND PRIX CORPORATION REACH AGREEMENT

Recently I wrote to you about the dispute over the negotiations with the Australian Grand Prix Corporation (AGPC) over the organisation of the 2011 event. I am very pleased to advise CAMS members that our President Andrew Papadopoulos announced today that we have signed an agreement with AGPC for CAMS to be the sporting Organiser as defined in the Formula One Sporting Regulations.

This agreement not only ensures the grand prix will be run to the highest standards of safety and efficiency, benefiting from the expertise developed by CAMS in undertaking the same role at every modern Australian Grand Prix since Adelaide in 1985 and at the grands prix of Singapore, Bahrain and Korea, it also ensures that CAMS is compensated for its direct and indirect costs and avoids any need to dip into CAMS reserves.

In a statement to the media, Andrew has said "CAMS is delighted to have reached this agreement and looks forward to continuing its role in one of the world's best Formula 1 events and helping to make it an even greater success".

"Our officials are renowned internationally and trained to the highest standards. They will make an irreplaceable contribution to the running of the AGP."

I am also very pleased to advise that the agreement includes several direct benefits for CAMS and its membership of more than 50,000.

The Australian Grand Prix Corporation will offer exclusive discounts on admission tickets to members of CAMS-affiliated car clubs accessible via CAMS web site".
We also have secured a number of display locations at the Albert Park circuit which will be used by CAMS car clubs to promote the benefits of membership and CAMS affiliation and also to stage our Ignition Program throughout the event.

In addition, I'm delighted to announce that winners of CAMS national championships will be recognised with a parade lap during the grand prix weekend.

This is a first for CAMS and its champions. To be recognised publicly at the country's premier motor sport event will be not only a great honour, but also an opportunity to display the breadth of motor sport for which CAMS is responsible as the governing body in Australia.

CAMS is very conscious of the great support that its officials and members have given us during these negotiations. We have received numerous emails and personal statements supporting our position, for which, on behalf of CAMS, I express our appreciation.
Yours sincerely


David Morgan
Chief Executive Officer
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