Locals say State Government is ignoring them as MotoGP fallout threatens economic future

Three months on from Phillip Island losing the Australian round of MotoGP, the Victorian Government has still not met the Bass Coast Shire Council to discuss the crisis enveloping the local business community.

Councillors have repeatedly called for a meeting with appropriate government ministers to investigate opportunities to claw back the estimated $29 million annual loss of income to local businesses.

At least one councillor has accused the state government of “stonewalling”, with another saying the attitude at the highest level is “lacking respect”. Bass Coast Shire Council Mayor Rochelle Halstead says no meeting or even conversation has taken place with the new Tourism Minister Natalie Suleyman, who was appointed on 15 April in a cabinet reshuffle.

In the immediate aftermath of the island losing the event on 18 February, the-then Tourism Minister Steve Dimopoulos said that the government had said no to moving the event to Albert Park’s F1 circuit because “we could have kept the event in Victoria if we had sold out Phillip Island. We weren’t willing to do that”. Since then there has been silence.

Halstead has high hopes that an alternative event can be found.

“I wish to assure the community of Bass Coast, especially, but also the wider Gippsland area, that there is work happening in the background,” she told local media. “We are doing everything we can to get that meeting with the minister in order to put some ideas forward and to get some sort of commitment from the Victorian government.”

The group behind a proposed week-long motoring festival (as previously reported by AMCN) has also accused the government of inaction.

Former Tourism Victoria chief executive Jeff Floyd told the ABC the Victorian government needed to move quickly to help establish a replacement event for the island.

“Here we are, drifting on,” he said.

Floyd is spokesperson for a group that includes representatives of the Victorian Historic Racing Register (VHRR), Phillip Island Classic Car Group and Destination Phillip Island.

They propose a week-long event held each March that will build on the current Phillip Island Classic Festival of Motorsport, considered the largest historic motor racing event in the Southern Hemisphere.

As well as cars, it would feature music, period fashions, food and wine, and be appealing to a wide demographic.

Floyd said a formal business case was still being built but he predicted it had the potential to generate a return “comparable with the MotoGP”.

“And I’m absolutely confident that after five years, this would stand alone on its own two feet, if we get it right,” he said. “But in the short term, we do need some initial funding.”

Meanwhile, Island businesses have urged Bass Coast Shire Council to make the final 2026 MotoGP round a spectacular event in Cowes and say it could attract a record crowd if planned correctly.

The council is calling for ideas from the general community.

However, fans attending the final MotoGP round will have to negotiate major work that is about to start on the two-lane access bridge at San Remo.

Extensive bridge rehabilitation costing $50 million starts in June, with  site compounds in Newhaven and San Remo being erected to store equipment and machinery. The bridge carries between 10,000 and 15,000 vehicles a day and is the only road access for the millions of people who visit the Island each year.

Transport Victoria says the work will strengthen the bridge’s structure and extend its service life while maintaining current traffic capacity.

State Bass MP Jordan Crugnale said the project would secure the future of one of Victoria’s most important coastal links.

“This project helps secure the future of the iconic San Remo Bridge, ensuring that this vital link remains safe and reliable to support locals, visitors and businesses for decades to come,” she said.

“We’re delivering a carefully planned upgrade that protects the environment, supports tourism and keeps traffic moving while the work is underway.“​​​​​​​​​​​​​​​​

The government has also invested $4.7 million in the Phillip Island Hot Springs project and $5 million for more upgrades to the Penguin Parade.