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Coffs Harbour City Council has taken the surprise decision not to sponsor the Australian leg of the World Rally Championships (WRC) this year.

On Thursday night (14th April) the Council voted four to two against sponsoring the annual WRC Rally Australian event in 2016 and 2017.

In the past the Council has provided significant funding to the multi-million-dollar event.

Councillor Keith Rhoades, who supported the sponsorship, said the decision could potentially kill off the Coffs Coast WRC, telling the ABC "I was just shell-shocked at their decision because none of those four councillors realised the ramifications to our local economy.

"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."

Councillor Rhoades said he immediately filed a rescission motion to the 2016 sponsorship decision, which will be debated at the April 28 council meeting.

He added "I was just shell-shocked at their decision because none of those four councillors realised the ramifications to our local economy.

"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 said it was also appalled by the council vote.

Chamber President George Cercato said a withdrawal of event sponsorship could damage Coffs Harbour's reputation in Australia and overseas.

Cercato added "it brings $13 million plus, why would you do that?"

Councillor Sally Townley said there were good reasons for the vote against the council continuing to sponsor the event.

She told the ABC that "the motion that was before the council was in three parts.

"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."

Image: Nathan Quinn races in the Coffs Coast leg of the World Rally Championships in September 2013. (Courtesy of Rally Australia).

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