Next year's Supercars race in Newcastle appears destined for the scrap heap after the council's administration declined to recommend councillors approve a one-year extension.
Acting City of Newcastle chief executive David Clarke wrote to councillors late last week saying the NSW government's offer to Supercars of a one-year race extension next year was "inconsistent" with recent community consultation which focused on a new five-year contract to race in the East End.
The council's administration has not included any recommendations on Supercars in the agenda for Tuesday night's monthly council meeting.
The councillors' next opportunity to vote on any extension is in late October, three weeks after Supercars has said it will announce its 2024 race schedule.
Greens councillor John Mackenzie said the Newcastle 500 appeared to be dead for next year at least.
"Unless there's an 11th-hour intervention and it comes back to the council, it won't go ahead," he said.
"If the council administration is not prepared to push for agreement on a one-year extension, unless they come back with an alternative offer, it won't be on the schedule of events next year."
Newcastle was due to host the opening round of the Supercars series in March next year.
Mr Clarke, who is filling in while chief executive Jeremy Bath is on holiday, suggested in his letter that the council had no appetite for a one-year deal.
"Just advising there has been no material change this week in relation to the Newcastle 500," he told councillors.
"City of Newcastle committed in 2022 to undertake extensive community consultation on the option to extend the Newcastle 500 for a further five years following the 2023 race.
"To date, the NSW Government and Supercars Australia have not agreed on a five-year extension of the race.
"Instead, the NSW Government has offered a one-year extension.
"This is inconsistent with the extensive community consultation undertaken in 2023."
Asked on Monday whether the council had told Destination NSW and Supercars that it would not support a one-year deal, a City of Newcastle spokesperson repeated the wording of Mr Clarke's letter.
Minister for Jobs and Tourism John Graham said on Monday that the government had "provided funding for the Newcastle 500 to return in 2024".
"The government is engaged in discussions about funding future events over the five-year term with Supercars and will work with council to find a solution," he said.
Newcastle has hosted Supercars rounds in 2017, 2018, 2019 and 2023 under a five-race deal signed in 2016.
That agreement included an option to extend the race for five more years but did not mention a one-year extension.
The Newcastle 500 includes three days of racing around a street circuit in Newcastle's historic East End and about two months of track set-up and bump-out.
The event has attracted strong opposition from many Newcastle East residents and inner-city businesses.
The race's future could become an issue for voters and candidates in the Newcastle council election next September.
A KPMG report on this year's public consultation found the community was divided on the event.
Thirty-seven per cent of online survey respondents and 55 per cent of phone survey respondents wanted the race to return.
Independent councillor John Church said the consultation had shown the majority of the city did not support the event continuing.
The race needs council support to go ahead, regardless of any funding deal between Destination NSW and Supercars.
Sources have told the Newcastle Herald that the new Labor government proposed a one-year extension to better align the race and Destination NSW's involvement with the state budget cycle.
The Makers x Traders business collective and Newcastle East Residents Group called publicly this month for the council and Premier Chris Minns to stop the race returning to the city.
"Annual contracts are in no-one's interests, especially not for long-term roadworks and infrastructure, not for commercial and residential developments and growth," they wrote in a letter to politicians.
"The building of the Newcastle 500 exclusion zone causes economic disruption in the city for two months out of 12.
"This is economically unviable for commercial business investments in the Newcastle CBD.
"The Newcastle 500 event is not inclusive and shuts down the city."
Many Newcastle councillors and local Labor MPs have supported the race, arguing it brings economic benefits and valuable tourism exposure, but have promised to be guided by the results of the community consultation.
Political sentiment towards the event appears to have shifted since the KPMG report was made public last month.
A Supercars spokesperson said the motor racing organisation and Destination NSW were "aligned in their shared commitment to host the opening event of the 2024 Repco Supercars Championship in Newcastle".
"Discussions are ongoing with Newcastle City Council and we continue to work collaboratively to find a resolution swiftly regarding the long-term future of the event in NSW's second largest city," the spokesperson said.
