The V8 Supercars cost has risen by $3 million dollars to cover materials and labour all because of inflation.

V8 Supercars chairman Tony Cochrane denies a cost blow-out has hit next year's planned Townsville street race.

The State Government says a revised estimate of capital costs has jumped because of inflation and the associated costs of materials and labour.

It is estimated that the cost of establishing permanent facilities for a precinct to host a round of the V8 championship has risen by up to $3 million.

Flooding and cyclones in the north have also contributed to the cost hikes.

State Sport Minister Judy Spence confirmed last week there had been a rise in costs because of strains on the building market and that vital products needed for construction such as asphalt and cement were in short supply.

“We're aware of it as we've been part of it,” Cochrane said.

“It's not really a blow-out as the costings were finalised in May, 2006, and it's just inflation."

“And the Government has already agreed to the extra funding.”

The State and Federal Governments have each agreed to provide $10 million to set up the V8 race along with a few million from Townsville City Council.

The only loose end is that organisers are awaiting changes to the Act of Parliament regarding noise abatements and what is said to be a small reduction in railway land.

“It will give us a whole heap of carte blanche Acts and we expect it to go through in the next three to four weeks,” Cochrane said.

Construction work on permanent facilities, which can be used year round for purposes outside motor racing, is scheduled to start in June.

Townsville mayor Les Tyrell attended the first Hamilton street race in New Zealand last weekend and covered a range of logistical topics with that city's mayor, Bob Simcock.

There is the possibility of opening up a direct airlink between Townsville and Hamilton, which Tyrell says could offer more economic scope for the region.

A firm date for the Townsville race is expected to be announced by the end of next month, according to Cochrane, who says it is locked into running in July next year.

Hamilton event partners praised the first event although there were concerns over fans at the back of the six-storey grandstand opposite pit straight who could not see the track.

And there have been unsubstantiated claims that scores of fans illegally accessed the circuit at the commercial end of the precinct through local businesses.

Race promoter Dean Calvert was unaware of fans getting in free and said he had spoken with fans angered by the positioning and angle of the grandstand and promised organisers will get it right next year.

There was also heavy criticism from television viewers, saying the track lacked appeal and the racing was dull.

Cochrane responded to some of the criticism by asking fans to be patient.

“It's not the first track in the world to get the rake of the grandstand wrong,” he said.

“I recall vividly Indy (Surfers Paradise) having it grossly wrong in every single grandstand one year.”

_{* Formula One strugglers Super Aguri look likely to stave off collapse — in the short term at least — after confirming their cars were on the way to Spain for this weekend's race.}