Motorplex dispute drags on

The state government has defended its oversight of motor racing in WA following accusations of anti-competitive behaviour.

The state government has become ensnared in a dispute over the control and direction of drag racing in Western Australia, with VenuesWest accused of having an unhealthy relationship with the operator of Perth Motorplex and putting profit ahead of other considerations.

The controversy has erupted after Perth Motorplex announced late last year that the US-based International Hot Rod Association would become the sanctioning body for all drag racing events at its Kwinana venue.

Perth Motorplex has advised that all members will be required to hold an IHRA licence.

The Australian National Drag Racing Association, which has had responsibility for drag racing nationally for more than 40 years, believes this is a breach of competition policy.

In a letter to Department of Sport and Recreation director general Ron Alexander this month, ANDRA chairman Michael Fotheringham said the government was promoting anti-competitive behaviour.

“It is one issue for the tracks to choose an alternative sanction body, but to force ANDRA members to change due to an engineered monopoly within the state is another issue,” the letter states.

“With respect, this is clearly third-line forcing (as set out by the ACCC allowing dual licences for speedways) and your department needs to take action.”

The controversy escalated when the Confederation of Australian Motor Sport, which is closely linked to ANDRA, said it was deeply concerned by the recent developments.

“CAMS will not work with or support any drag racing sanctioning body other than ANDRA,” chief executive Eugene Arocca stated in an open letter.

The controversy follows an unusual chain of events around the time Perth Motorplex named IHRA as its sanctioning body, according to emails and letters seen by Business News.

ANDRA was given just two working days to complete a questionnaire demonstrating its best practice procedures by close of business on Monday November 30 last year.

On Tuesday December 1, Perth Motorplex issued a media release announcing it was making a complete switch to IHRA sanctioning.

On Thursday December 3, VenuesWest CEO David Etherton told ANDRA the agency had not made a decision on IHRA sanctioning and was still undertaking due diligence.

The next day, VenuesWest announced it had approved IHRA as an alternative sanctioning body following a meticulous assessment by a multi-disciplined team.

VenuesWest said it engaged independent experts in motor sport, venue operation, safety, sports policy, and risk assessment to assist its review, but has subsequently declined requests by ANDRA to identify those people.

VenuesWest has also declined to name the probity auditor it is using to oversee the selection of a new operator for Perth Motorplex, from July this year.

The preferred proponent is Kwinana Motorplex Pty Ltd, which has operated the venue since inception in 1999.

Veem Engineering Group director Brad Miocevich, who chairs Kwinana Motorplex, told Business News he and the operators of two big venues on the east coast had been pushing for changes to the sport, and as part of that process had established links with IHRA early last year.

Mr Miocevich insisted he also wanted to work with ANDRA and was surprised when commercial negotiations were terminated.

“I was personally dumbfounded, I’ve never been told why ANDRA walked away,” Mr Miocevich said.

ANDRA issued a statement last November saying it was unlikely to sanction the top-level 400 Thunder event or any other non-ANDRA event.

“That left us no option but to go to IHRA,” Mr Miocevich said.

He has accused ANDRA of abusing its former monopoly position.

“ANDRA had become more of a competitor than just a sanctioning body,” Mr Miocevich said.

“I believe they abused their market power in an attempt to stop us running our own events.”

Mr Miocevich said he was ‘chewed out’ by VenuesWest over the December 1 announcement, but had no choice, as Perth Motorplex was due to host a major event in mid December.

He was positive about the sport’s prospects with IHRA as a new partner.

Mr Fotheringham said the three big drag racing tracks in Australia, including Perth Motorplex, were trying to control the industry.

“We don’t see ourselves as promoters in competition with them, we see ourselves as facilitators,” he said.

Mr Fotheringham also expressed concern about the lack of transparency in the VenuesWest assessment, and noted that IHRA did not have an applicable rulebook when it was sanctioned.

Sport and Recreation Minister Mia Davies told Business News she was satisfied with how the two government agencies had managed the issue.

She said venue operators determined the utilisation of sanctioning bodies.

“As to the allegation of anti-competitive behaviour regarding driver licensing; when ANDRA sanctioned the Perth Motorplex for relevant competitions they required that drivers have a current ANDRA licence,” Ms Davies said.

“IHRA, similarly, require a current IHRA licence for drivers to race on the IHRA-sanctioned Perth Motorplex.”

The Perth Motorplex dispute follows controversy last year when a newly established body, Motor Sport WA, sought to gain control of Barbagallo Raceway as part of ambitious plans to develop a larger motor racing complex on adjoining land at Neerabup.

Motor Sport WA had backing from Mr Alexander and the Department of Sport & Recreation, but members of the WA Sporting Car Club, who have run Barbagallo since 1969, rejected its proposal.