The Supercars spin is all about the injection of cash the event is supposed to provide. Evidence from the previous Newcastle 500 events and the 2023 race prove otherwise. A few hotels (Newcastle does not have many) and nearby businesses selling alcohol, were able to recuperate some losses suffered during the pre-race closure of the peninsula. No-one else was able to capitalise on the race fans as customers. We’ve seen that no matter what businesses do to try and attract fans, the reality is that race fans simply want to get into the circuit. Their only interest is the cars. Nothing else. Their food and beverage needs are met inside the track by Supercars-preferred suppliers from out of town. Not local. Photographs from every event tell the same story. While local cafes and restaurants bleed money, Supercars fans line up for fast food and beers inside the track. Businesses such as tax accountants, barbers, medical services, galleries, hairdressers, design shops, clothing stores, homewares stores, engineering companies, architects, finance advisers, gyms, lawyers etc. get NO business from the event. 

And Supercars uses Gema Group from Sydney to cater for the event. All that money flows OUT of Newcastle. 

The security company came from Sydney. (Previously they have also come from Queensland.) They brought their own staff with them. We had hoped the staff would stay in Newcastle hotels, but instead they had to “camp” inside the PCYC at Broadmeadow. So no cash flow to Newcastle there. 

IEDM is the Supercars-affiliated company used to install the race infrastructure…based in Queensland in the same office building as Supercars. Not local. 

Volunteers (there were fewer this year) were camped at Maitland showground, so did not spend money in the Newcastle LGA. No-where inside the circuit was there an opportunity to pump money back into the local economy, yet Newcastle residents and business owners pay twice for Supercars…once with their tax money and again with their rate money. 

Small businesses rely on return customers, locals and foot traffic. They got none of this during the event. Darby Street (Newcastle’s eat street), outside the event precinct, but close-by, was extremely quiet. Traders there and closer to the circuit reported a decline as soon as work began on building the track. This is partly because patrons don’t want to tackle the traffic snarls, road closures and inconvenience, so they stop visiting the city. For many, that change in habit becomes permanent as they make new connections to cafes and pubs away from town. Another problem is that a huge number of locals leave Newcastle with their families in order to avoid the race. They spend their money elsewhere during the race. All that local trade is lost as well. Local businesses reported losses of 70%-75%. Some who did trade well on the Saturday and Sunday, reported that they only broke even due to the downturn in the lead up to the race and the slow return of customers after the event. 

So while Newcastle residents exit the city and boost the profits of other LGAs, the Supercars fans who come in, spend their money at mostly non-local outlets and boost the profits of Sydney and Queensland companies.

In the midst of all the chaos, a cruise ship loaded with passengers arrived in port. The horrified visitors could not access any of Newcastle’s historic, environmental or cultural  features. The best of Newcastle’s iconic beaches, monuments, coastal walks and parklands were hidden behind ugly fences and barricades. The cruise passengers were transported to other LGAs to spend their money – and will probably never return. It is almost impossible to conclude that approximately $30 million is ‘injected’ into the economy when our city is deserted. The Supercars event impacts negatively on the city due to two important factors: displacement and leakage. Displacement is a measure of the volume of normal activity displaced by an event. Leakage is money that is NOT spent in the host community but goes OUT of the local community. For instance, when race patrons stay at international hotel chains, rather than locally owned ones.

Displacement and leakage are especially damaging in Newcastle due to the lengthy time the event and the infrastructure is here. 

It’s obvious that the money spent by our ‘visitors’ did NOT go into the Newcastle economy but instead made its way out of Newcastle via non-local traders and contractors. 

The dollars flowed to the food vans, alcohol suppliers, the sponsor merchandising, equipment hire companies and NOT to Newcastle businesses. On Saturday night Hunter Street restaurants were nearly empty, yet on a ‘normal’ Saturday they would be operating to capacity.

There are many thousands of people who are not interested in the event, don’t go to the event even though it is in their city and avoid all areas of the city that are affected by the event. There is a mass exodus of families out of Newcastle. This means that the local spend economy (normally regular and sustainable) is taken to other LGAs.

The money doesn’t stay in Newcastle. Local businesses have data that shows the correlation between business downturn and the period of time that Supercars occupies the city. CON and the state government bolster the economies of other regions by absorbing all the race costs and race disadvantages here in Newcastle. 

Newcastle people deserve to know the truth behind the spin. CON’s costs are hidden in the way they publish budget statements. For instance, the roads for the circuit must be resurfaced before each event (under the terms of the agreement). Yet there is no mention of the Supercars road program in council documents. Instead, the cost is included (and hidden) in ‘general road maintenance’ for the whole city. Ludicrously, the new road through the Foreshore Park behind Nobbys Beach (only used for 3 days each year) has to be resurfaced before each event, under general road maintenance, even though it is only used by Supercars on the 3 days of racing.

Looking at the Supercars event this year, it is apparent they are tightening their belts. Shortcuts and cutting corners were frequently observed. The main reason for locating the concerts inside the circuit would have been to keep patrons captive, so that they ate and drank inside the Supercars compound rather than going for dinner outside. This had the effect of adding to their Supercars profits, while reducing patronage at local cafes and restaurants. 

We have seen in previous events how slowly the uptake for local businesses is during and after the bump-out. People know from experience that road closures and dismantling operations last long after the race is over. The Newcastle 500 is NOT just for three days!  By the time Supercars moved the circus on, the summer was well and truly over. Any opportunities to capture the last of the summer trade season were lost.

Supercars made the decision to hold the concerts in the race precinct in 2023. The 2019 concert was due to be held out of the race precinct to give residents respite from the noise and chaos of the event. In the end, that Kiss concert was cancelled, and there was a huge fan backlash. This year’s concert location took residents by surprise. Expecting it to be away from the precinct, they had hoped for some quiet at the end of the day’s racing. On the Friday night, the line-up appealed to an older audience, and on the Saturday night the Hilltop Hoods were expected to bring in the younger fans. Neither concert attracted the numbers that attended the Jimmy Barnes concert in 2017. The Saturday concert had a larger, louder crowd. 

Many people, not interested in motor racing, but wanting to attend the concerts, were forced to buy tickets to the motor event in order to access the concerts. There was much dialogue on social media, where people complained that they couldn’t buy a separate concert ticket.

To counter the surge of concert-goers into the “residential-only zone”, residents asked for the secure zone to be kept closed until concert attendees left the precinct. The police commander gave assurance on the Thursday before the event, that the fencing would be secured until 7:00 pm each night, when it was expected that the majority of concert attendees were already at the concert. A request to Supercars to secure the fencing until after the conclusion of the concerts was refused, and a statement issued saying that the gates would only be secured until 7:00 pm at night. (Police gave an undertaking that they would increase personnel in the resident zone after the gates were opened at 7:00 pm.) The fences had signs at each opening notifying that the resident-only area would be secure from 7:00 am until 7:00 pm.

On the first day, the area was flung open before 6:00 pm and race patrons were able to access the whole area. Urgent emails to Supercars went unanswered. The area was opened every night before 6:00 (when concert attendees were streaming into the precinct) despite calls for the original times to be upheld. 

In previous years secure fencing prevented patrons from entering the resident precinct via the garden slopes on the edge of the Supercars compound. No fencing was installed for the 2023 event, and patrons infiltrated the area from a number of  entry points. Supercars finally sealed one small entry point many hours after residents complained, but did not seal any of the others. Patrons at the Saturday night concert used the community produce garden as a de facto toilet. One of the long term custodians of the garden was in tears of despair after seeing intoxicated concert goers urinating on the plants.

Many of the remaining residents (most left with their children and pets) chose not to register for wristbands to enable them to enter and exit their own homes. Any proof of identity and residential address is all that is necessary (and at the same time, an affront to personal freedom). Despite assurances that security staff would be informed about accepting alternative documentation, many residents were challenged and denied entry. Several asked gate staff to call police to let them in. After being refused entry, one resident waited for 20 minutes before police arrived to allow the resident to walk home.

There is a particular lunacy in holding a car-race in this location. Yes, the TV images (when they pan to the surroundings) look great. The coastal city is beautiful. The peninsula is perfect for passive recreation and the fort and lighthouse look stunning. (In 2023, the footage included happy bathers enjoying the facilities at Newcastle Ocean Baths, despite it being closed and undergoing major reconstruction.)

But any coastal environment and motor racing are at opposite poles. Fans would attend the race wherever it is held. In fact, the compound is surrounded by black plastic walls preventing views out to the harbour and beaches. There is an alternative. Circuit Italia – 15 kms north of Raymond Terrace could accommodate Supercars next March. Just imagine – real benefits without the disruption.

This is the solution that real motor sport fans want. For example, in 2016, Former Formula Ford champ Russell Norden said a “A very big thank you to [Central Coast Council’s] Rob Noble for drilling down and seeing what a ridiculous waste of (how many?) millions of dollars it is to build a circuit that only lasts for 4 days! It is absolute madness!  We need to spend those millions on a permanent motor racing circuit that is of benefit 365 days of the year. It then benefits the sport, it benefits local businesses, it can be used for driver training, for functions, for car launches, for just about anything because it is PERMANENT and it is always there, 365 days of the year!”

On a purpose-built track fans could actually see cars racing– and cars could have ample opportunities to overtake. The Newcastle track has severe limitations. It does not meet the basic minimum width for street circuits in several places, relegating the race to a single-file fast drive-by.

Visitors could stay in Newcastle, visit Port Stephens and the vineyards and take the opportunity to extend their stay and experience the city without the restrictions and constraints that the race imposes. It could be a win-win. It should be a win-win.

Relocating it to a purpose-built track and keeping the city open and accessible to all while the event is on offers wonderful opportunities. The concerts could still be held in the city. We could have a cultural/artistic/foodie/craft beer/surf comp/music vibe in town and the car racing at the track. Accommodation providers, hospitality, shops, services parks and playgrounds and sporting fields could still operate as usual. There is the prospect of a value-added visitor uptake if the event appealed to a more diverse audience. The possibilities are endless. If it was held outside the city, we would not have the mass evacuation of locals (that increases with each event) and our local traders would reap the benefits.

Our business community would be able to make something amazing happen IF the race wasn’t in the city!

Unfortunately we have grown very used to Supercars getting things wrong on a daily basis. This has occurred during every event staged in Newcastle. Worse though, is having so little recourse to get anything fixed or to get replies from anyone associated with the event.

It is reprehensible that the Minister for Sport and the Office of Sport refused to have a full time presence on site before the works commenced. As the authority for the race, they should have played a more active leadership role in what is a complex Civil Construction project, and one that is known to be fraught with difficulties. Perhaps some of the problems would not have occurred and residents and business owners wouldn’t be of the opinion that it has been the most disorganised bump-in process yet, despite it being the fourth time they have carried out the identical procedure. By turning a blind eye to community concerns, the Minister and Office of Sport have relied on hope as a plan. That’s risky. At the very least, there should have been an independent entity for people to speak to about their concerns. To quote one business on a Facebook post, Newcastle East is “a community about to combust with anger and frustration”.  

Council has commissioned two benefits-only reports. Neither report examined the many costs associated with the event. Neither report subtracted the costs paid by ratepayers, taxpayers, local businesses and residents.
Interestingly, the two reports came up with vastly different figures for the number of people in the event space during the 2017 event.  Supercars’ official attendance record for that year was 292 242. The Hunter Research Foundation Centre (HRFC) used Telstra data and found ‘77 600 people who ordinarily reside outside the event space were present in the event space area.’ To account for the similarities in their respective economic impact reports, despite these vastly different numbers, the HRFC then used multipliers to boost the impact result to $30.1 million. This sleight of hand method was employed despite ABS advice that multipliers should not be used for assessments of benefits for regional projects. The ABS discontinued their use after considerable debate in the user community as to their suitability for the purposes to which they were most commonly applied. That is, to produce measures of the size and impact of a particular project when supporting bids for industry assistance of various kinds. Council’s EY Economic Impact Report of 2021 reverted to using Supercars attendance figures for all 3 years, including the 292 242 2017 figure.

What is the justification for the 9 weeks disruption to our prime tourist destination in peak season for 9 weeks every year? It’s impossible to tell from the attendance count because the numbers of race patrons who come through the gate are not released. Only the ‘tickets issued’ by the promotor are made public and most of these are free and counted whether people come or not. It’s impossible to tell from local and state government reports on its economic benefits because these agencies use these same figures to calculate overall ‘visitation’ benefits.  It’s impossible to depend on media reporting of the event because the media are very likely to be sponsored by Supercars.

An accommodation search was undertaken on 20/02/23. The search looked at Newcastle and surrounding areas. The number of properties with vacancies from Friday 10/03/23 until Sunday 12/03/23 was:-

Trip Advisor (Hotels) – 104
Trip Advisor (Apartments) – 64
Air BNB – 300

One of the few businesses that should benefit from Supercars is accommodation. But the figures show that it doesn’t appear to be the case. Following loss of bookings during the lockdown of the precinct from February 1st, the results are troubling.

There is no available count of people who actually pass through the gate – all benefits are worked out on ‘tickets issued’. This includes the many thousands of free tickets given away. There is no way of knowing if recipients of free tickets actually attend the event. For the last 3 events between 60% – 70% of the ticket count was issued directly by Supercars accreditation department i.e. given away free.

NERG revealed that results of a Freedom of Information application for ticket data showed that ticket recipients were counted as racegoers even if they did not attend.

Without a verifiable set of attendance figures – any consultation report, announcement of economic injection or estimate of crowd numbers cannot be objective.

Yet, Supercars DOES know how many actually pass through the gate. Everyone who comes to the event is scanned. The simplest way to determine and defend the accuracy of attendance claims is to require Supercars to produce those scanned numbers.

Successive governments and councils will need to develop a more believable narrative about why this event is being imposed on the city in the first place. The idea that it is good for tourism is laughable given the 2 months occupation of the city and its extensive barricades, scaffolding and closure of roads and car parks.  V8s racing through heritage streets hardly presents an  image of a city looking to lead the world in the transition to a greener economy.

The sudden decision to host the opening season of the series in Newcastle meant that summer events already committed to had to be relocated away from the city and the Foreshore. 

Summer finals and regular Nippers activities at the local surf life-saving clubs were cut short and the season was unfinished.

The Newcastle Fringe Festival had to find alternative venues in outer suburbs. Weddings and receptions already booked many months ahead, took place with a backdrop of  concrete, wire  and construction machinery.

The popular Newcastle Beer Festival, always held in the East End precinct and Honeysuckle, had to be moved away to King Edward Park – a far more unsuitable venue. 

The location of the race is completely unsuitable. Other street circuits (Bathurst, Adelaide, Townsville and Gold Coast) do not shut their cities down and exclude everyone from iconic city destinations for months. These other circuits have the advantage of multiple routes in, out and around the circuit and race precinct. In Newcastle the limited number of roadways into the peninsula are cut off by the circuit for months. In this location, the race locks in more than 3000 residents (including three complexes of public housing for the elderly) and forces the closure of hundreds of local businesses because clients and customers cannot access the site.

It is time for ministers and state government agencies to order an Auditor General’s Report. Homebush, Hamilton and Canberra have all been audited with damming results. The Newcastle 500 is due for one!

Instead, of the benefit-only reports commissioned by CoN, councilors must push for an Auditor General’s cost benefit analysis, before any further decisions about the race are made.

Supercars is a private company. It depends on government funding to exist. Large subsidies from state and local government bodies allow it to continue. Newcastle people pay for the race twice – with taxes and rates.

The race in Newcastle costs Supercars very little. An extraordinary amount of council money is spent on providing services for this private company. The official figure of $1.6million is as ludicrous as it is impossible. CoN pays Supercars $500 000 just as an appearance fee! The road grinding and resurfacing is hidden in the council budget under city road ‘general maintenance’. Those 2 items alone, would account for the budget CoN says it spends.

Every event, Supercars requires more clearing of shrubs and trees. 2023 was no exception.

In total, the Foreshore parks and streets have lost more than 200 trees. A greater number of trucks and machinery had to be stored in the park due to the loss of The Station as a storage area. If there were branches in the way, they were simply cut off.

Weeks of heavy truck movements transformed the grassy areas of the park into a dusty wasteland requiring many months of rehabilitation (at council’s expense).
The rubbish, take-away containers, plastic cups, plastic straws and plastic bottles is a land fill catastrophe.

Thousands and thousands of plastic cable ties are used to secure black plastic to fencing all over the precinct. During the dismantling of infrastructure, as in previous years, the ties were cut off and left on the ground, roads, park gardens, gutters and footpaths.

The new Dunlop racing tyres used in 2023 were softer than previous ones. They disintegrated over the course of the day, leaving the equivalent of almost 300 tyres broken into various sized pieces. Tyre rubber was flung all over the roads, gutters, footpaths and parklands. Much of the plastic and rubber was swept into drains or was washed into drains when heavy rain fell before it was removed from gutters. Days after the race, pieces of tyre rubber of varying sizes could be seen on the sand at Newcastle Beach.

Burn-outs contributed unwelcome and unnecessary air-borne pollution in close proximity to residential homes on the track. It appeared the burnouts were aimed at residents, since they were performed on parts of the track that spectators were excluded from.