Funding call after rally restored

Motor sports chiefs want the money back on the table but ministers says the deal has 'long since come to an end'

Wales Rally GB organisers have called for £2.2m assembly government funding to be revived after the event was restored to 2010's world championship.

The rally's future was thrown into doubt when the funding was withdrawn amid claims next year's event was not part of the World Rally Championship.

Now the sports governing body has confirmed next year's race will be the final round of the 2010 championship.

But the assembly government said its contract for the event had ended.

The 2009 rally, due to start in Cardiff on 22 October, was secured last week when the Motor Sports Association agreed to underwrite the cost.

It has several stages across south and mid Wales.

After confirming that the race will also be held in 2010, rally organisers, International Motor Sport (IMS), said they wanted urgent talks with the assembly government about reinstating the contract to support the UK's only round of the World Rally Championship (WRC) up to 2011.

The Welsh Assembly Government had no alternative but to draw a line earlier this year and took action to terminate the contract, something which IMS clearly recognised we were perfectly entitled to do Assembly government spokesman

It threatened to press ahead with legal action if the matter is not resolved by 8 July.

IMS chief executive Andrew Coe said: "The inclusion of Wales Rally GB on the 2010 WRC calendar by the FIA World Motor Sports Council effectively addresses each and every one of the concerns of the Welsh Assembly Government in relation to our 2007 to 2011 agreement.

"This finally removes any reason for the assembly government to continue withholding funding for the 2009 Wales Rally GB, as well as the remaining events within the term of our agreement."

The Welsh Assembly Government has been the event's main sponsor since 2003.

'Discussions'

A spokesman for the assembly government said: "The assembly government notes that the proposal to put the Wales Rally GB back on the calendar of qualifying rounds for the World Rally Championship has now been ratified by the FIA, the World governing body.

"However, this was an undertaking first given by the organisers, MSA Limited in December 2007 following the decision by the FIA to change the status of the rally to a biennial qualifying round.

"As this undertaking did not materialise despite repeated promises by MSA, the Welsh Assembly Government had no alternative but to draw a line earlier this year and took action to terminate the contract, something which IMS clearly recognised we were perfectly entitled to do.

"As this termination took place some months ago, the contract has long since come to an end.

"The assembly government acted entirely in its legal rights and at all times in the best interest of Wales. The assembly government waited for as long as possible but could not do so indefinitely, which would have made no commercial sense.

"Throughout the assembly government has been at pains to offer without prejudice discussions with the rally organisers.

"To date, two meetings have been held, and a third meeting is under consideration."