Coffs Harbour pulls Rally Australia funding

While the Council has poured significant funds into the event since it moved there in 2011, ABC news reports a vote has gone two-to-four in favour of cutting sponsorship from this year onwards.

Shell-shocked by decision

According to Councillor Keith Rhoades, a supporter of the event, the decision is a shocking one.

"I was just shell-shocked at their decision because none of those four councillors realised the ramifications to our local economy," Cr Rhoades told the ABC.

"They did not consider the impact to local jobs, to the free exposure that Coffs Harbour gets worldwide from this event. To the many, many hundreds of people that are involved in the organisation and the preparation of this event."

The Coffs Harbour Chamber of Commerce was also dismayed by the decision.

"It brings $13 million plus, why would you do that?" he said.

"Why would you even consider it? Why would you even think about it?

"Think about the message we're sending to all those people in Europe and Australia."

Decision based on conflict

Councillor Sally Townley, one of the four councillors to vote against the sponsorship, said a conflict of interest was at the heart of the decision.

"The motion that was before the council was in three parts," Cr Townley told the ABC.

"One was to approve the sum of money for the sponsorship for 2016, the other was to authorise the council general manager to execute that deal, and the last was to approve the 2017 sponsorship.

"I wasn't able to vote for that because effectively we were being asked to approve the general manager to execute a deal between the council and Rally Australia Pty Ltd, of which he is a board member. Our general manager holds an executive role in both organisations, so I find that the transfer of money between those organisations creates a conflict."