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Australian Grand Prix chairman Ron Walker has warned that unless Formula One resolves its political issues, Melbourne could walk away from the sport.
F1 was once again thrown into chaos this week when FOTA revived their threat to start a breakaway series after Wednesday's disastrous meeting with the FIA's Technical Working Group.
"If the disunity continues Melbourne will seriously consider its position on continuing with Formula One," Walker told The Age newspaper.
"Without Ferrari racing in Melbourne, (the race) will lose much of its glamour and therefore the government investment will come into question."
The Aussie added that in his "view Mr Mosley should walk away from the sport with dignity rather than slowly strangle to death the great brand of Formula One.
"The sport needs fresh and dynamic leadership more than ever before to lead F1 into a new era of motor racing.
"Bernie Ecclestone is absolutely trying to be a peacemaker, but if the most successful automotive companies in the world will not agree to the rules laid down by the FIA then that will be the end of it."
Meanwhile, Victoria Premier John Brumby says Melbourne doesn't want to play host to "half an event" that is lacking the sport's big name teams.
"I want value for money for Victorian taxpayers and that means that you want all of the competitors, you want all of the race teams," he told the Sydney Morning Herald.
"We won't be paying for half an event, simple as that. So I hope that they can resolve this, I'm sure that they can. I think it's very early days."
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