An open letter from the MSA Chief Executive regarding forest stage rallying in Wales
You will be aware that there are no confirmed fees for accessing the Welsh forests for stage rallies beyond 31 May, following the expiration of our previous Master Agreement in December 2015. In contrast, new 2016 agreements for England and Scotland were agreed in January, based on 2015 prices plus RPI at 0.7 per cent.
Due to the fact that negotiations with Natural Resources Wales (NRW) are ongoing, the MSA had not detailed the relevant figures publicly. However, since NRW has now published these figures on its website (click here) the MSA feels it appropriate to respond and bring you up to date with what is a very worrying situation for us all.
As you can see from the NRW figures, last year the MSA paid £339,000 for road repairs in the Welsh forests, but NRW says that its costs for reinstating the roads in 2015 actually totalled £655,000. NRW is currently negotiating on the firm basis that it will seek reimbursement of the total cost of reinstatement.
Assuming the quoted £655,000 figure is representative over more than one season, this would mean a doubling of Welsh forestry charges, and NRW currently intends to introduce these new rates from 1 June 2016.
The MSA continues to negotiate in an attempt to convince NRW (and the Welsh Government, of which NRW is a sponsored body) that rallying’s significance to Wales is felt far beyond the sport itself, and that this bigger picture must be taken into account during negotiations.
For us there are three separate but inextricably linked aspects to consider: the sport; the industry underpinning the sport; and economic impact upon – particularly rural – communities in Wales.
Regarding the sport, it is of course synonymous with Wales, both in terms of its heritage and also in the modern era as the host country for the UK’s round of the World Rally Championship, sponsored by the Welsh Government, with whom we enjoy an excellent and mutually beneficial relationship.
There is then the industry. Quoting from the Welsh Government’s Directory of Welsh Motorsport Companies 2014/2015: ‘Wales has a well-established automotive sector with over 150 companies employing more than 1500 workers generating a turnover of over £3billion annually.’ It continues: ‘In towns and valleys, nestled in industrial estates and enterprise parks are motorsport suppliers on the very top of their game. From high end engineering through to merchandising and clothing and racing circuits through to parts suppliers, Wales has a wealth of world class motorsport companies.’
Finally there is the economic impact. When a rally takes place in Wales, the immediate and calculable financial benefit is that competitors, marshals, officials and spectators visit the area for a day and often longer. The MSA has access to UK-wide data that, although now four years old, gives a good indication of this financial impact.
To summarise that data, based on a one-day forest event with 120 competing crews, to include arrival on the previous day and some staying over to the following day, competitors are estimated to bring approximately £99,500 to the region. Marshals, officials and visitors are estimated to bring £345,000, giving a combined total of £444,500. With 10 national forest events running in Wales, this equates to £4.45million.
If we add Wales Rally GB, which alone creates a staggering £10million for the Welsh economy, we can reasonably conclude that forest stage rallying is worth approximately £15million a year to Wales. And that does not even take into account the promotional value of these events, some of which have a global media reach.
We hope that NRW can look beyond its balance sheet and fully appreciate these many benefits, so that there can be much more opportunity for negotiation. And while we must now accept that there will inevitably be an increase in charges, these could certainly be far more realistic and also introduced over a greater period, rather than overnight, which could potentially have a catastrophic impact upon a proud part of Wales’ sporting heritage.
Your governing body will continue to seek the best possible deal but we should not be in any doubt that the immediate and long-term future of rallying in the Welsh forests is currently very uncertain.
In the meantime, we would encourage those of you voting in Wales on Thursday to contact your new or returning Assembly Member to ensure that they are fully aware of your concerns for what Wales may stand to lose.
And if you do not live in Wales but nonetheless have a stake in Welsh rallying, whether by competing, volunteering or spectating in the Welsh forests and thereby filling your petrol tanks on Welsh forecourts, eating in Welsh restaurants, sleeping in Welsh B&Bs or buying goods and services from Welsh motorsport companies, please also make sure that your voice is heard, before it is too late.
Yours in motorsport,