[Matthew Ronke]

Ross that question is certainly the million dollar question. There are serious issue with the contract and legal implication that come back upon any circuit that signs the agreement as Bob Jane has pointed out just a few. We at Winton have never forced any agreement upon circuit users to use CAMS or AASA despite being seriously concerned with events under CAMS and some requirements asked s by us from CAMS in regards to the VSRS & Honda Car Clubs events at Winton. This was a serious test of our faith in CAMS and something we must questions ourselves in wether we can continue under those circumstances. We wish to be able to give people the choice of AASA or CAMS at Winton in the future but it depends on wether CAMS can put an acceptable proposal together for us at Winton.

In relation to AVESCO I don’t think they will become involved in the situation. I believe you are right in regards to the ACCC. If AVESCO were to force upon anyone to use CAMS Insurance it would be a long the lines of third party forcing and a few other anti coemptive laws I believe. So AVESCO I would assume will go back to CAMS say we have a contract you fulfil your obligation and sort it out. This is what I believe Wayne Cattach told CAMS nearly 2 years ago when the issue first arrived. If CAMS had listened to Wayne then we probably would have amicable situation between CAMS and some disgruntled Race circuits. I don’t believe AVESCO would want to expose them selves legally just to do the dirt work for CAMS. The second issue is the increased fees charged by CAMS. This puts a lot of pressure on circuit operators who also have AVESCO also looking to get higher returns from sanctioning fees now competing for the same dollars. Every dollar CAMS can bargain of promoters is one less that AVESCO has the opportunity to bargain for. Therefore CAMS could put AVESCO legally in risk while they take the income that AVESCO are competing for.

Winton Round of the V8 Supercar is in July in 2004. This falls into the period of which CAMS does not have an insurance policy for. We might be facing a situation were CAMS are unable to find insurance at all in a difficult insurance market. This could have serious repercussions on both yourself (Procar) & AVESCO. If all are contracted to run under CAMS and there is no insurance or substandard insurance then if there is a claim then either the circuit or CAMS or (AVESCO/PROCAR) would have to pay. It then would be a matter of ability to pay. With CAMS as Bob Jane points out quarantining there Assets it would be down to AVESCO/PROCAR or the circuits. At some circuits such as Clipsal 500 & Eastern Creek (NSW Gov) they would see them as having a greater ability to pay. At most other circuits I would suggest that the lawyers would see AVESCO & PROCAR as having a greater ability to pay. As Bob Jane has suggested has happened to him for $18.7 Million.

Ross these are all serious issued to be addressed before any contracts could or should be signed.