Lord mayor Nuatali Nelmes says Supercars has been "very successful for Newcastle" and "a lot of people really want the event to go ahead" as a Mexican stand-off continues between the council and state government.
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Newcastle council's administration has refused to support a state government proposal to extend Supercars' deal by one year after conducting public consultation this year based on the prospect of a five-year deal.
That consultation showed 59 per cent of 10,998 online survey respondents from Newcastle and 42 per cent of 490 phone survey respondents from Newcastle did not want the race to return.
In the council's inner-city ward one area, two thirds of online survey respondents opposed the race.
Newcastle MP Tim Crakanthorp says he does not support the race given the council survey has proved his constituents are against the event.
On Wednesday, Cr Nelmes backed the council's position that elected councillors could not vote on a one-year deal because it was incompatible with the consultation.
But she expressed support for the race's benefits.
"I would say Supercars has been very successful for Newcastle. It has really showcased us, showcased the city, as being able to host major events," she said.
"I know the Premier is very supportive of having Supercars in Newcastle, and I know a lot of people really want the event to go ahead here, but we do have to be mindful of all the stakeholders through this process and we do have to make sure we go through a methodical process and there's no point in rushing this and missing something along the way when it is a very complex set-up and and set-down if the event was to go ahead in Newcastle."
Newcastle East Residents Group has called on the council and government to make a final call on whether next year's race will proceed.
NERG spokesperson Christine Everingham said in an opinion piece in the Newcastle Herald that Novocastrians would be "scratching their heads at the news that the deal makers are still 'continuing to find a solution'".
"The residents and small businesses impacted by the event are justified in thinking no one is listening to the real impact of this event on the city," she said.
Business Hunter chief executive Bob Hawes agreed that a swift decision would allow affected businesses and residents to plan and prepare.
"I would have thought the respective stakeholders have sufficient information to be able to determine whether a one-year extension is worthwhile or not, notwithstanding it is outside the existing parameters of the original understanding," he said.
Jobs and Tourism Minister John Graham has said this week that the Newcastle 500 brings economic benefits to the city, region and state, but Destination NSW has not completed an assessment report on this year's race.
The Herald has seen an email from a Destination NSW lawyer to NERG this month stating the assessment report would not be complete until the end of the year.
Supercars is due to announce its 2024 calendar early next month at the Bathurst 1000.
Mr Graham said in a radio interview on Wednesday that "we need to resolve this matter shortly so it won't be left hanging".
He reiterated the government was keen on keeping the race in Newcastle for another five years but had offered Supercars only a one-year deal due to a $100 million shortfall the former Coalition government had left in Destination NSW's events budget.
Mr Graham said the government "understand some of the strong views in the community about this, including the concerns about the bump-in, bump-out period last time round" but supported the race due to its wider benefits for the region and state.
"From a state government point of view, from a tourism point of view, it would make sense to press ahead with a five-year deal," he said.
"I've got no problem with the council consulting with the community or the local member expressing a view about the impacts on his particular electorate.
"But, when it comes to the state government's view on this, we've really got to look at what it means for the state, what it means for the broader Hunter."
When discussing the prospect of a new five-year race deal, Cr Nelmes said: "That would be something that council would want to look really closely at, but until we have a deal that is done based on the terms of our consultation earlier this year there isn't actually anything for council to decide at the moment."
Asked if he would override the council's position, Mr Graham told ABC Newcastle the government had committed funds for next year's race, had started negotiating with Supercars on a five-year deal and was "keen to see this event proceed".
The council said on Tuesday that the government would have to pay for its own round of community consultation if it wanted elected councillors to consider approving the race's return for one year.
Labor sources said the race was unpopular among Newcastle party branch members and could be a volatile issue at next September's local government elections.
The council's administration and Supercars signed a secret five-year "services deed" in 2016 spelling out City of Newcastle's obligations as race host.
A City of Newcastle source said the event was held on council-owned roads and parks and would need council approval to go ahead.
Minister for the Hunter Yasmin Catley said the Newcastle 500 had brought "hundreds of thousands of people to our city".
"And, can I tell you, the people of Swansea that I represent they love the Supercars. They would come here in a heartbeat," she said.
"Supercars is watched around the world. It showcases this city like no other."
