Wales Rally GB deadline set for court action

The Welsh Assembly Government has been given 12 days to reinstate funding for Wales Rally GB or face a civil claim for breach of contract likely to run into millions of pounds.

The deadline has been set by rally organisers IMS after the FIA World Motor Sports Council ratified the 2010 event as the last round of the championship next year.

The IMS has decided to underwrite this year's event after the sponsorship was pulled by WAG in the Spring and also for next year.

Now the organisers will seek to cover their costs with a court settlement which could cost Welsh taxpayers millions, both for losses this year and next.

WAG has maintained that IMS consistently failed to confirm the event in the calendar and as such breached its original contract terms.

IMS is considering a press conference in Cardiff next month to outline what it will do this year and next and explain its claim against the WAG.

In a statement yesterday, IMS said, "The rally organisers, International Motor Sports (IMS), are now seeking urgent talks with the Welsh Assembly Government (WAG) to re-instate the contract which provides sponsorship and support to the UK 's only round of the World Rally Championship from 2007 until 2011.

"Earlier this year WAG had terminated its sponsorship agreement with Wales Rally GB organisers IMS, having anticipated that the 2010 event may not form part of a revised FIA World Rally Championship calendar.

"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 WAG in relation to our 2007 to 2011 agreement. This finally removes any reason for WAG to continue withholding funding for the 2009 Wales Rally GB, as well as the remaining events within the term of our agreement".