Oct.30 (GMM) A report filed in state parliament on Thursday revealed the latest growing cost of Melbourne's Australian grand prix.

The report showed a loss of (AUD) $40 million for the 2008 race, representing a $5m increase in expenditure, and a decline in sponsorship revenue compared with the 2007 race at Albert Park.

Last year, the race lost $34m, which was $12m worse than in 2006.

The 2005 event lost only $13m.

The Victorian government's hosting of the grand prix is controversial within the state, but earlier this year a new deal securing the race's future through 2015 with a 5pm 'twilight' start time was announced.

"We recognise there is a cost to the state for holding the event. We're always up front about what that cost is," said government minister Tim Holding.