COUNCIL taxpayers in Southampton will be paying £1 million to host the Volvo Ocean Race next year - in the hope it will bring in a £7 million business bonanza to the home of ocean sailing.

The port city has been guaranteed the start of the next two races, in 2001 and 2005, but will have to pay a retainer of £80,000 a year for seven years to Volvo.

Other costs, including marketing and entertainment, have already brought the total bill to £760,000.

But that total does not include the cost of a race village, which could be as much as £300,000 extra.

The BT Global Challenge race, which launches later this year, costs Southampton £200,000.

But deputy council leader John Arnold said: "It is one of our claims to be the centre for ocean racing and if we want to maintain that claim we must have ocean races.

"The amount of coverage and publicity that the city will get through the race will be far in excess of the amount we are putting in.

"The two races could bring in as much as £14 million to the city economy. It's a good deal and will benefit everyone in the city."

Winning the race has also ensured that Southampton schools were chosen to pilot an educational programme sponsored by Volvo, which will use the environmental, meteorological and oceanographic information transmitted by satellite from the racing boats to the Oceanographic centre.

There was tough competition from neighbouring Portsmouth to host the Volvo Race - formerly sponsored by Whitbread. South-ampton eventually beat off all challengers to win the start, which will be launched as the climax to the 2001 Boat Show.

The race will then move on to Cape Town, Sydney, Auckland, Rio de Janeiro, Miami, Balti-more, La Rochelle, Gothenburg and Kiel.

Thousands of people are expected to flood into the city to watch the event, filling hotels, restaurants and shops.

Hundreds of TV cameras will be trained on Southampton for the start - with as many 100 million TV screens expected to tune in across the world. Millions more people are expected to log onto the website set up to promote the race.

Marketing chief Chris Elliott said: "It will also be a big party for Southampton people. It will reinforce our position as the home of ocean sailing."

Converted for the new archive on 25 January 2001. Some images and formatting may have been lost in the conversion.