Rallying-Wales Rally GB in danger after funding cut

LONDON, April 16 (Reuters) - The future of the Wales Rally GB is in jeopardy after the assembly government said on Thursday it was withdrawing it's 2.2 million pounds ($3.27 million) annual funding for the event.

"Wales Rally GB was intended to have World Rally Championship qualifying status each and every year but as a result of a Federation International de l'Automobile (FIA) decision this is no longer going to be the position," an assembly spokesman was quoted by the BBC.

"In particular the 2010 event is not going to have qualifying status and as such is not the type of event which it was agreed the Welsh Assembly Government would sponsor."

World motorsport governing body the FIA plan to begin rotating the World Rally Championship between 22 countries starting from next year meaning the Wales Rally GB will be dropped from the WRC calendar.

The rally's organisers International Motor Sports Ltd (IMS) said the Welsh Assembly had breached a contract to support the event it says ran through to 2011.

"This unprecedented action towards WRGB by the Welsh Assembly Government has been instigated without any prior notice or consultation," an IMS statement said.

"It is in breach of the existing contract between IMS and the Welsh Assembly Government that was signed on 30th March 2006 for the period up to and including the 2011 Rally."

(Reporting by Martyn Herman. To query or comment on this story email sportsfeedback@thomsonreuters.com)