UPDATE: PREMIER Denis Napthine insists the new five-year Grand Prix contract signed by his government is a “better” deal for taxpayers but he has refused to outline its costs.

Dr Napthine ruled out the event being held at night, and said the contract guaranteed Melbourne will host the first race of the F1 calendar each year.

The Sunday Herald Sun revealed today the new contract would lock in the Australian Grand Prix for Melbourne until 2020.

Dr Napthine said the investment in the Grand Prix was “returned many-fold over”, with tens of millions of dollars in wider economic benefits.

“It is not appropriate to disclose the actual cost of the contract, that is part of the commercial in confidence arrangements,” he said.

The premier and Tourism Minister Louise Asher said the government supplied the costs of each year’s race to taxpayers through annual reports, and it was unable to provide more information.

“I can tell you the new contract is significantly better for Victoria,” he said.

“This reaffirms Melbourne and Victoria as the sporting and major events capital of the world.”

Dr Napthine said the contract ensured Melbourne’s Grand Prix would be the first race on the calendar every year until 2020, and that there would be no night racing.

The premier distanced himself from Formula 1 Supremo Bernie Ecclestone, saying he did not agree with some of Mr Ecclestone’s views – including on homosexuality.

He refused to comment on Mr Ecclestone’s coming trial on bribery charges , saying it would not be appropriate for him to comment.

On the government’s press release Mr Ecclestone is quoted as saying the new contract showed Melbourne was the world’s sporting capital.

“I congratulate Melbourne for the excellent way in which is presents Formula 1 to the world,” Mr Ecclestone is quoted as saying.

After more than a year of negotiations, the contract was signed in London late last week. Dr Napthine hailed the outcome as a “fantastic” win for Victoria, and said the Grand Prix was an integral part of the state’s successful major events strategy.

The deal ends months of speculation about whether the Government would keep or kill the event in an election year.

A two-year deal was initially considered among several contract options presented by Australian Grand Prix Corporation chairman Ron Walker, but the Government opted for a long-term contract.

Melbourne won a number of concessions in the race contract allowing the Albert Park race to be run differently to other nations’ GPs.

This includes Melbourne branding being displayed prominently, support categories such as V8 Supercars being staged in conjunction with the F1 program, and proceeds from corporate hospitality going to the Australian Grand Prix Corporation rather than F1 management in London.

Australian F1 star Daniel Ricciardo said it was “awesome’’ that Melbourne would keep the race.

“To know there are many more home Grands Prix to come is great. I’ve got to say as an Aussie, no one does the event quite like Australia,’’ he said.

“I love being there flying the Aussie flag - bring it on.”

Last year’s Grand Prix cost taxpayers $50.67 million and a similar public subsidy is ­expected for this year’s race.

The Government and the Grand Prix Corporation both refused to reveal the total cost of the new deal, citing confidentiality clauses. And Victorians will continue to be kept in the dark about the size of the fee paid to billionaire F1 boss Bernie ­Ecclestone for our right to ­continue to host the event.

But F1 sources said the ­revised deal was “comparable or better’’ than the existing contract due to expire next year, in line with demands by Dr Napthine that it be a “fair deal for Victorian taxpayers’’.

Ms Asher said the GP created up to $39 million of economic benefits to the state each year and delivered “invaluable’’ TV promotion of Melbourne.

“These cornerstone events enhance our international reputation as the world’s most livable city,’’ she said.

Next year’s race, the last under a five-year contract signed by the former Brumby Labor government, will be held from March 12-15.

Melbourne has hosted the Australian GP since 1996.

peter.rolfe@news.com.au