Tourism Minister Mark McGowan today said financial issues had been the main reason behind the State Government’s decision to withdraw its support for Rally Australia after 2006.
Mr McGowan said there was nothing new about the fact that sponsorship for the event was an ongoing problem.
“Together with increasing costs and a relatively low return on investment for the taxpayer, sponsorship of Rally Australia has become harder to secure in the past few years,” he said.
“It was one of the main reasons we decided to withdraw our support for the event after 2006.”
The Minister mentioned the problems with Telstra sponsorship during Parliamentary debate on May 4, 2005.
Further mention was made of the problems with sponsorship in publicly released information in July.
Mr McGowan said notwithstanding this, the State Government would continue to negotiate with Telstra and other sponsors in relation to the 2006 event.
“We have always said we would abide by our contractual obligations to host the event in 2006 and we are working hard to secure sponsorship to keep the costs as low as possible,” he said.
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