– the reaction

This year’s Wales Rally GB (WRGB) is under threat, following a recent decision by the Welsh Assembly Government (WAG) to serve notice of termination of its agreement with International Motor Sports Limited (IMS). The decision is a direct breach of the contract which was signed in 2006 and should run until the 2011 Rally.

This unprecedented action means that the IMS has no alternative but to commence proceedings for breach of contract. The decision by the WAG has been greeted with dismay by rally fans, politicians, industry and local businesses, with many people speaking out about what is widely-perceived to be a decision that will have a negative impact on Wales. Below are just a few of the comments that have been made:

Malcolm Wilson, managing director of M-Sport, said:

“The key thing is that the Welsh Assembly doesn’t realise what they are letting go of - it’s a fantastic event and one that other areas would jump at the chance to host.”

Welsh Liberal Democrat Shadow Economy Minister and Cardiff Assembly Member, Jenny Randerson said:

"This is a huge blow for Cardiff, they were hoping to expand the role Cardiff had to play in the rally and now the whole future seems to be in doubt.

"If Wales Rally GB is right in it’s assertion that WAG has a legal contract until 2011, then it is truly astonishing that WAG has taken this sudden decision to cut funding without any discussion. If legal action is successful, then it will end up costing the taxpayer and the stretched public purse even more than it would have done by continuing the funding.

"This event creates jobs and investment, at a time when recession is biting hard, this decision will lead to further job losses and cuts in inward investment into Wales."

Peter Hain, MP for Neath and former Secretary of State for Wales said:

"Wales Rally GB plays a pivotal role in the Welsh sporting calendar, bringing both significant prestige and investment to the country," he said. "It's a 'jewel in the crown' event that we must all work to keep on the calendar as a world championship rally.

"I firmly hope the decision is therefore reversed."

Wales' Shadow Heritage Minister, Alun Cairns Assembly Member, said:

"If Wales aspires to be a leading venue for international sport then it needs the support of government. We have always supported efforts to bring events like the Ryder Cup and Ashes cricket to Wales.

"Reports that ministers have cut funding for the Wales GB Rally at such short notice undermines those efforts. They also undermine the Assembly Government's own commitment to attracting major sporting events to Wales.

"Only yesterday, ministers were talking up the importance of the Ryder Cup to the Welsh economy and to tourism. Twenty-four hours later, those same ministers pulled the plug on £2million in funding for an equally prestigious event, which Wales has hosted with distinction for many years."

Nigel Howells, Executive for Sport, Leisure and Culture, Cardiff Council, said:

“Cardiff Council has always recognised the contribution Wales Rally GB has made to not only the Cardiff economy but the Welsh economy as a whole.

“It is a disappointing and shocking decision; Wales Rally GB has contributed to the Welsh economy and culture over a number of years, and there doesn’t seem to be any plans in place to replace such a prestigious event.”

Jenny Willott, MP for Cardiff Central, said:

“It is an extremely surprising and very disappointing decision.

“Wales Rally GB brings people and money to Cardiff and South Wales and to take away sponsorship for the event seems a short-sighted decision to make during a recession.”

A Cardiff Council spokesman said:

"The only knowledge we have of this is the email sent to us today (15 April) by the BBC. If true, the council is both surprised and disappointed as the rally is a major economic vehicle for both Cardiff and Wales. It has developed over the last nine years to support international events in Cardiff and Wales and there has been a good working partnership between the Welsh Assembly Government (WAG) and International Motor Sports (IMS).

"We understand that WAG and IMS had entered into a contract which runs until 2011 and we will work with both organisations to try and ensure this successful event continues in Cardiff and Wales until, at least, that date."