Memorandum submitted by Motorcycle Sport
Political Strategy Group (MPS)
1. INTRODUCTION
1.1 The MPS is a collaboration between the
Auto Cycle Union (ACU), the Amateur Motor Cycle Association (AMCA)
and the Motor Cycle Industry Association (MCI). The three organisations
have come together to address misunderstandings about motorcycle
sport, highlight its value to broader society and also to tackle
the sometimes justifiable concerns regarding some events and the
use of venues. The MPS has the following main objectives:
1. Bring standards to motorcycle sports events
through the establishment of a code of practice, for event "authorising
bodies". Such a code is aimed to improve the management of
events, increase sustainability, ensure the selection of proper
sites and improve relations with local stakeholders.
2. Highlight the social and economic potential
of motorcycle sport with regard to young people, communities,
reducing illegal riding and enabling opportunities in rural areas.
1.2 Motorcycle sport is often not fully
understood. Many people see the sport as being only the top class
range of UK and international track racing events. UK track racing
often sets the standard, with several UK venues running major
national and international series.
1.3 However, off road sport remains the
area of motorcycle sport with the highest participation levels,
with several disciplines which are run from a range of venues.
Over the last five years, there have been on average over 4000
off road events per year, with over 55,000 riders taking part.
Events range from schoolboy motocross to high profile motocross
races, such as the hugely popular Weston Beach Races in Somerset.
1.4 Some events can be significant economic
generators. For example, the Isle of Wight Motocross GP in 2004
attracted 30,000 spectators with an estimated local economic benefit
of around £2 million. The total number of spectators for
UK events is estimated at around 1.7 million per annum, who spend
approximately £34 million. Overall, motorcycle sport currently
represents approximately three quarter of a billion pounds to
the UK economy.
1.5 Unfortunately, off road motorcycle sport
is under considerable threat from the closure of venues and denial
of access to facilities. Such restrictions on motorised off road
sport are often motivated by concerns about the environment and
excessive noise that can be generated through irresponsible or
unregulated use. Sometimes badly organised events by ad hoc organisers
create local problems which give the sport a bad image. Sometimes
illegal riding by individuals can taint an entire community's
view about off road motorcycle sport.
1.6 The MPS aims to bring more understanding
to the debate about motorcycle sport and its value to society.
We also aim to promote quality standards, safety and environmental
responsibility to sporting events. As part of these activities
we are calling on the Government to support the MPS code of practice
for motorcycle sport authorising bodies under the Road Traffic
Act.
1.7 Properly organised off road motorcycle
sport can be of great value to local communities and can also
engage young people in safe and responsible riding, thereby helping
to reduce the incidence of illegal and nuisance off road motorcycling,
in itself a matter of great concern to communities and the police.
2. The importance of the sport to the industry
2.1 Whilst motorcycle sport doesn't have
the level of manufacturing or high tech development that the UK
boast in F1, there are notable exceptions:
— Triumph Motorcycles in Hinckley are now
a dominant force in British and World Supersport racing.
— Norton Motorcycles have just been re-launched
in a new manufacturing facility at Donington Park Leicestershire.
2.2 As in Motorsport, the strength of the
UK's domestic motor sport scene has been a fundamental factor
in the success and development of these industries, securing hundreds
of UK jobs.
3. The economic impact of the sport
3.1 The ACU report that competition licence
holders spend a total of £150 million each year on their
motorcycle sport. The majority of this is put back into the UK
economy either through supply/engineering companies or the associated
service industries of hospitality and tourism.
3.2 A recent economic impact assessments
indicated that in 2008 major motorcycle race events such as the
World Superbike Championship, MotoGP, Motocross of Nations, the
Motocross Grand Prix, the Weston Beach Race and the Thundersprint
generated a total expenditure of £100 million within the
UK.
4. How effective has government policy been
in supporting the sectors?
4.1 Motorsport Development UK (MDUK) was
established in 2003 by the Motorsport Competitiveness Panel of
the Department of Trade and Industry (DTI) to preserve the UK's
pre-eminent position in the global motorsport industry. However,
it did not deliver what the sport or the industry required and
in many areas sought to re-invent what was already in place, leading
to duplication, inefficiency and confusion. It was hoped that
the government would support and fund the infrastructure of the
sport, providing much needed resources to the sector and helping
to stem the exodus of volunteers that had been seen over the previous
decade.
4.2 In terms of Education, the MSA has launched
an Advanced Apprenticeship in Sporting Excellence in motor sport,
benefitting from the government's commitment to vocational apprenticeships
and sporting excellence. Working with the Learning and Skills
Council (now National Apprenticeship Service) as well as the Sector
Skills Council for Sport (SkillsActive), the MSA has created a
complete MSA Academy structure to develop the education and training
of young people in motor sport. The ACU is working with the MSA
on this project with a Team UK Motocross squad enrolling 6 riders
on this programme in 2009. In 2010 the ACU will also enrol a number
of young riders from across all sporting disciplines.
5. How could government policy better support
UK motorsport?
(a) Deregulation of motorsport over recent
years has led to a surge of independent organisers, operating
outside of the control or influence of the Governing Body. This
has led to a gradual weakening of rules and regulations to the
point where a significant percentage of off road motorcycle sport
now operates without any meaningful regulation, and certainly
without any environmental standards or control.
(b) As mentioned above, the MPS has recently
developed a Code of Practice (CoP) for the organisational and
management of motorcycle sport events. The MPS feels that the
CoP should apply to all organisations listed as "awarding
bodies" under the Road Traffic Act. Recent meetings with
DfT Ministers has revealed a level of Government support for taking
this discussion further and we look forward to the DfT's forthcoming
consultation on matter related to the Road Traffic Act and motorsport
awarding bodies.
(c) The UK does not permit the suspension
of the Road Traffic Act without an Act of Parliament being obtained.
This prevents any use of the public highway by motor sport events
with the exception of the Isle of Man and Northern Ireland. This
severely disadvantages the UK against other countries who can
make the decision to close roads at a local level; this can also
deprive local communities of the benefits associated with creating
and hosting suitable events. The Thundersprint, which take place
every May in Northwich Cheshire is a good example of the potential
of sporting events within communities. Opened by the Mayor and
run on private land, the event regularly attracts over 100,000
spectators in a single day and generates over £4 million
income to the local economy.
(d) The government's charity commission
makes it extremely difficult to establish a charitable Foundation,
despite the aims of the Foundation being to grow the sport, provide
training and education to young people in motor sport and engage
with society with a responsible road safety message.
(e) It would be extremely helpful if there
was a more positive reception to the way noise and planning issues
are dealt with at a local level. If local government officers
could have a more balanced approach and understand that off road
does have social and economic benefits, not only could we arrest
the decline in off road sport facilities, but may positive benefits
would accrue to local communities.
6. The impact of the recession on motorsport
6.1 There has been a noticeable decline
in activity in 2009. The ACU report that licence figures have
seen a general decline of around 10% and there has been a similar
reduction in the level of activity on events of approaching 10%.
6.2 It has been noticeable that while people
have not stopped competing in motorcycle racing, there seems to
have been a reduction in their budgets. Many seem to have scaled
back their outlay and taken a step down in terms of competition
level.
6.3 There has been a predictable collapse,
however, in the corporate market both in terms of hospitality
and events and this will have had a significant impact on the
associated service industries. There has also been a huge impact
on sponsorship revenues and activity, the full impact of which
may not be felt until 2010 when the current sponsorship and corporate
deals expire.
6.4 The AMCA is reporting a reduction in
motocross licences issued in 2009 as a direct result of the recession.
Other disciplines such as trials and classic scrambles are level
or in some cases actually slightly up in terms of licence numbers.
The AMCA find that many of their motocross licence holders are
employed within the construction sector which has been particularly
hard hit by the recession, resulting in an obvious knock on affect
with rider numbers. Some clubs have struggled to make ends meet
when they have ran events with lower rider numbers but the AMCA
also report that they are fortunate that club officials and organisers
are so committed to the sport that the AMCA will still run a similar
number of events to previous years.
6.5 During the last recession of the late
eighties there was a similar drop off, though in that case the
numbers returned the following year straight back to the previous
level. We are told on a daily basis in the media that this recession
is worse than previous ones so with that in mind we are expecting
a more gradual return to previous levels.
7. CONCLUSION
7.1 The UK motorcycle sport community brings
a great deal of economic benefit to the UK economy and generates
significant funding and employment in its own right.
7.2 As outlined in section 5 of this submission,
there are a number of straightforward and uncontroversial actions,
with limited cost implications, that the government could take
to support motor sport in the UK. We hope that the Committee will
clearly highlight these opportunities in its final report to Government.
7.3 The MPS do not specifically seek to
give oral evidence at the Enquiry, but are of course very happy
to appear before the Committee should this be desired.
APPENDIX ONE
KEY INDICATIVE ECONOMIC INDICATORS OF MOTORCYCLE
SPORT
Off Road Key Facts
| |
| Total number off off road riders | 55,300
|
| Total number of events | 4,275
|
| Average number of events per rider | 28
|
| Total of bikes sold per annum | 24,591
|
| Total number of spectators per annum | 1,710,000
|
Total economic value of off road sport
| £356,622,317 |
| Road Racing (track) Key Facts |
|
| Total number of riders | 6,000
|
| Number of riders participating per event |
200 |
| Total value of motorcycles used per annum |
£21,000,000 |
Total economic value of road racing
| £318,040,000 |
Total Economic Value of Motorcycle Sport
| £674,662,317 |
Source: MPS Study, based upon 2005 figures. Employment figures not included)
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APPENDIX TWO
CASE STUDY
When Italian rider Valentino Rossi screamed home in front
of more than 70,000 bike fans to clinch this year's Cinzano British
Motorcycle Grand Prix, at Donington Park, in his slipstream came
£16.5 million gross expenditure and 242 jobs for the local
economy.
This is just a taste of the findings presented in a new study—commissioned
by East Midlands Development Agency (emda), Donington Park and
event organiser Dorna Sports—into the economic impact of
the 2004 British Motorcycle Grand Prix.
It was the 18th time this prestigious event had been held
at Donington, yet the crowds continue to get bigger each year,
with last July's Grand Prix meeting attracting a record total
of nearly 130,000 spectators over four days.
The survey calculates that, once at the circuit, bike fans
spent a total of almost £14.6 million within a 25 mile radius,
including the cities of Derby, Leicester and Nottingham. The event
was said to be the cause of a further £1.9 million expenditure
across the rest of the UK.
This boiled down to £9.9 million additional, or value
added, expenditure brought to the local economy by the British
Motorcycle Grand Prix, once due account has been taken of the
displacement of spending that would occur at some point in future.
The study shows that three quarters of UK visitors to the
event came from outside the East Midlands, with 1% of all fans
travelling from overseas. Just over half the spectators said they
enjoyed other activities away from the event, mostly shopping
and eating out. The average stay was for two days and one night.
28 September 2009
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