The north economy suffered a £1million blow yesterday after it as announced one of the most popular motorsport events in the country would not go ahead because it is too expensive to insure.
This year’s Mull Rally, which brings thousands of people to the island and the Oban area, was due to take place in October.
But yesterday, organisers made the “devastating” announcement that the event will not go ahead because of “insurmountable insurance issues”.
The problem with staging closed road events came to light as a result of the Jim Clark rally tragedy in 2014, where three people died.
Fans of the rally have been flooding its Facebook page with messages of support, stating that they will still visit Mull on the weekend of October 13-15 to support the island economy.
And organisers hope to organise something informal to entertain them.
Tobermory-based Councillor Mary Jean Devon said: “The rally has been going for 48 years. It is an integral part of Mull’s social calendar, the rally calendar and also our economic calendar.
“It was a really hard decision but there was no way they could continue this year. It is a shock to the community.”
A statement on the 2017 Beatson’s Mull Rally website reads: “It is a matter of considerable regret for the organisers and the Motor Sport Association, the sport’s governing body, that the Beatson’s Building Supplies Mull Rally cannot run as a closed road event in 2017 due to insurmountable insurance issues.”
MSA chief executive Rob Jones said: “The Mull Rally runs under a private Act of Parliament. It has emerged that the private closed road legislation raises very significant insurance challenges for Mull this year, which was first thought to render the Mull Rally uninsurable.
“The MSA has been endeavouring to find a solution with its brokers. Whilst the brokers have offered a potential solution for 2017, this is unfortunately totally impractical as each and every claim under the policy would be subject to a very significant excess payable by the organisers, and one which the organisers cannot afford.”
This will be the first time it has not run on closed public roads since the event was granted its Act of Parliament in 1990.
In 2015 co-driver Andrew Mort died when the car he and rally driver John MacCrone were in crashed into a field. The 47-year-old Dervaig man died at the scene.
It is hoped that following the conclusion of the Fatal Accident Inquiry into the Jim Clark and Snowman rallies in July and August this year, that the Scottish Government will quickly adopt the new legislation recently passed in Westminster which will allow the Mull Rally to make a return in 2018.
The probe will examine the death of Joy Robson at the Snowman Rally in Inverness in 2013, as well as those of Iain Provan, Elizabeth Allan and Len Stern at the Jim Clark Rally in the Scottish Borders the following year.
Andy Jardine, Mull Rally Clerk of the Course, said: “This development has come as a massive shock, as we were well on with a lot of the early work of setting the route and preparing the paperwork.
“As I understand it, the MSA has been working behind the scenes to try and agree a work-around but have been unable to come up with an acceptable solution. Our attention is now focussed on what can be done in the short timescale to make sure something happens over the weekend.”
Donald Brown, chairman of the Guardians of Mull Rally, said: “There’s no denying this is a huge blow to the island and its businesses who work hard to welcome the competitors, volunteers and spectators each year to the island in October.
“Initial feasibility checks have been started to see what can be done to mitigate the impact and hope we can rely on our regular visitors continuing to support us.”