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WALES GB RALLY - ECONOMIC BENEFIT OR EMBARRASSMENT?

The Times reports on the highly embarrassing situation regarding the Wales Rally.

"The future of the rally — a fixture in the World Rally Championship for 65 years — was in doubt after the Welsh Assembly decided to pull out of its five-year contract to base the event in Cardiff. The decision was said to have cost the rally more than £2 million in sponsorship cash this year, forcing the MSA to step in with a financial package to ensure the race went ahead. But the rift was visible to spectators as banners were stripped of the former Wales Rally GB title and replaced with the simple Rally GB name.

"Negotiations produced a face-saving deal for the Welsh authorities, which means the rally will be back in Cardiff next year. But that will be the last, with hopes high that it will find a new and more adventurous home in the North East. A delegation of authorities from Newcastle travelled to Cardiff on a fact-finding mission yesterday and they are understood to be keen to launch a new-look Rally of Great Britain.

"The event certainly looked unloved and unwanted last weekend, with the service park sited next to a recycling centre and the ceremonial start from a waterside plaza watched by a few hundred people — a big contrast with the more glorious days of the event when thousands lined the streets of Cardiff to watch the competitors roar by".

As I am not a fan of rallying at all, I cannot for the life of me comprehend the original decision to support this event with millions of pounds of taxpayers' money.

It is clear that legal wranglings, which are a direct consequence of WAG's decision to allegedly break its contract with the organisers of the rally, have resulted in considerable unfavourable news coverage for Wales as a sporting location. However, one has to wonder who in WAG would decide to give such an event £2.2 million of public funds every year, especially given that the Assembly Government has recently admitted that three years ago:

"an independent report carried out in 2006 by the Welsh Economy Research Unit for the Assembly Government found that there is evidence to show that the Wales Rally GB has had a positive impact in showcasing Wales as a destination through global broadcast and media coverage. However, the report also stated that the event has only had a marginal impact on the development of the Welsh motorsport/advanced engineering sector, and in terms of repeat visitation generates a modest tourism spend of circa £1 million per annum. The report confirmed that the 2006 Rally generated £3.3 million of gross value added, which represents a return on investment of less than 2:1. In comparison, Event Scotland, the national events agency in Scotland aim for a return on investment of 8:1 across their portfolio of supported events".

Such a decision makes the furore over IBW's expenses look like a storm in a teacup and I would suggest that someone within the Welsh Audit Office needs to look at this whole fiasco in greater depth.

It certainly begs the following questions:
  • Why did WAG enter into an agreement to pay millions of pounds of taxpayers' money on an event that, according to an independent analysis, brings a very modest return on investment compared to other sporting events?
  • Why hasn't WAG pushed forward with greater support for the motorsport industry given that it has a near-empty Auto Technium which was built at a cost of £8.5 million to support the industry in Pembrey?
  • Despite stating that there its decision to pull out was legally sound, why is WAG going to fund one more year of the event, presumably at a cost of £2.2 million to the Welsh taxpayer?
  • Why does the Secretary of State for Wales continue to suggest that the event brings in "over £10 million extra spending on hundreds of local businesses from hotels to restaurants to garages" when an independent report from Cardiff Business School suggests otherwise?

If the Welsh Audit Office is unpalatable, perhaps Glenn Massey can be persuaded to do one more review for the First Minister before he retires?

Comments

logicalman said…
sort of related but probably not.... what ever happened to 'Project Zircon'?

http://news.bbc.co.uk/1/hi/wales/3275661.stm
October 26, 2009 11:49 pm
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