Formula One body sets cost-cutting deadline

McLaren Formula One driver Lewis Hamilton of Britain leads Ferrari Formula One driver Fernando Alonso of Spain during the Canadian F1 Grand Prix at the Circuit Gilles Villeneuve in Montreal June 10, 2012.

LONDON (Reuters) - Formula One's governing body set a June 30 deadline on Friday for teams to approve any new cost-cutting measures, that would be policed by it, for next season.

The International Automobile Federation (FIA) also said in a statement after a meeting in Paris that it hoped to finalise a new long-term agreement with the sport's commercial rights holder in a matter of weeks.

"At their request, the FIA is having active discussions with teams regarding cost control," the FIA said.

"Any amendments to the technical regulations resulting from a further limit on expenditure on the chassis will be submitted to the WMSC (World Motor Sport Council) via a fax vote before 30 June.

"The intention is to help all teams participate in the Championship in a fair and equal manner."

The end of June deadline is the cut-off point after which decisions for next season must be agreed unanimously, something always difficult to achieve in Formula One, rather than by a majority vote.

Ferrari president Luca Di Montezemolo, whose team have one of the biggest budgets, warned on Tuesday that Formula One needed to take urgent action to address costs - a concern echoed by others.

Some of the smaller teams would like to see some sort of a budget cap introduced next season when a new 'Concorde Agreement' governing the running of the sport is due to replace the one expiring at the end of 2012.

Not everyone agrees with the FIA having a role as a policeman on costs, however.

Commercial supremo Bernie Ecclestone said last month that most of the 12 teams had agreed to sign an extension to 2020 and the FIA, the other party in the agreement, said it too was close to a deal.

"Discussions are on-going between the FIA and the commercial rights holder, with the intention of finalising an agreement in the coming weeks." it said.

With negotiations ongoing, the governing body also decided to defer a deadline for entries to the championship to September 30 from mid-July.

(Editing by Alison Wildey)