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Rally GB resolves Wales dispute

The ongoing argument between Rally GB and the Welsh Assembly Government is over - with the two parties reaching an agreement before the dispute went to court

The protracted disagreement was centred on the WAG's reported decision to terminate its contract with International Motor Sport - the commercial arm of Rally GB - ahead of its scheduled end in 2011 after the event was omitted from the original World Rally Championship calendar for next season.

Rally GB was confirmed as a qualifying round of the 2011 WRC next season at the World Motor Sport Council meeting in June.

The new agreement was signed yesterday afternoon and announced in Cardiff on Saturday evening.

Wales' deputy first minister Ieuan Wyn Jones said: "When doubts first emerged over the rally's status in 2010, we moved to protect our contractual position and taxpayers' money. Now that those doubts have been removed, we are delighted to continue to bring this event to Wales, with all the benefits it has for the people and the economy of Wales."

Chairman of IMS, Alan Gow, added: "I am pleased to confirm that we have now resumed our partnership with the Welsh Assembly Government to continue to host the event. I'm confident that we can build on the current success of the rally and produce a truly spectacular event for the people and business of Wales."

Rally GB is expected to remain in Cardiff next season before moving north in 2011.

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