No progress for Circuit of Wales
Originally proposed back in 2011, the Circuit of Wales are still no closer to breaking ground although they remain the rights holders of the British round of the MotoGP championship.
In a recent interview with WalesOnline.com Professor Gerry Holtham, leading economist and advisor to the Welsh Government raised concerns over the Circuit of Wales project stating it was ‘very risky at best’.
“To outsiders, with no particular expertise in the motor-racing business, this project has some very odd features. Firstly, it is apparently the case that no established motor racing facility in the UK reliably makes money. For that reason they are not expensive to buy.
“I am told that Silverstone, the premier location which hosts Formula One, could be bought for somewhere around £50m. Yet here we have a proposal to build from scratch a second class asset at nine times the cost of an existing first-class asset. The only reason I can think of for doing that is your are eager to lose money.
“The apparent justification for this quixotic venture is that the new racetrack would attract lots of associated businesses in the motor racing or general automotive sector. Why that should be so is mysterious.”
Although the current 10 year contract with Dorna is allocated to the Circuit of Wales, the round is currently hosted by Silverstone.
The organizers behind the Circuit of Wales project finally submitted a construction plan to the Welsh Assembly this week that required less than 50% public underwriting, one of the key stipulations after the latest set back.
It will take upto a month for a decision to be made.