Details have come to light this week that reveal how hosting the Formula 1 racing in Valencia will cost the regional government 300 million euro in five years, which has added to the upset of those workers of the now closed Ràdio Televisió Valenciana (RTVV) televiosion channel, as the figure is the equivalent that would have secured their positions of work for four years.

The sporting event was held in Valencia, at the Palau de la Generalitat, under an agreement by the former regional President, Francisco Camps. The contract was from 2008 to 2012, but it was cancelled last year due to the financial situation.

Spokesperson for the EUPV, Ignacio Blanco, said that “After six years it was time that Valencia knew the content of this controversial contract that has been hidden by the PP and were lucrative contracts signed year after year”, continuing to state that the agreement is a “symbol of an era of waste, big events, Pharaonic projects that we all pay for, and the opacity that have distinguished the PP governments, especially under the baton of Camps”.

The EUPV has published a copy of the contract on their website, as they feel it is of great importance to show how business was conducted under the PP regional team. The tens of thousands of people who have downloaded the document seem to agree with transparency too.

A purpose built race circuit was created on the public streets, which would allow the roads to be quickly converted from their day to day operation to a circuit which hosts the racing cars. This 90 million euro cost was considered something of a waste considering that there is already a racetrack at Cheste, just a few kilometres away. On the plus side, there were some 75 people employed for the purpose of assembling the elements on the city streets, their wages paid for the 5 year period adding to the overall cost though, and then add to those costs the 115 million euro apparently given to Formula 1 boss Bernie Ecclestone, tax free, the overall amount is estimated at 300 million euro of public money.

Along with the immediate financial implications detailed above, the contract was also clearly aimed at ensuring the sport providers were protected, although that protection would be at the expense of the public accounts, as the contract, originally signed in 2007, required the Generalitat to assume all losses.

Ignacio Blanco says that Francisco Camps used the contracted company Valmor as a “front” for the payment of fees for the Formula 1 events, and set up a triangular netwok of businesses where the only loss would be to the public purse, with those running the event never losing out. “The government of (Francisco) Camps is responsible for contracts with Ecclestone and Valmor, and the government of (Alberto) Fabra bought the Valmor company assuming all debts, so both are responsible for the ruinous business F1 has been for Valencia”, concluded Blanco.

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