Councillor Warren Aubin has said cancelling the inaugural Bathurst International is "not a win for anyone", but organisers were left with no other option in these tough times.
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Australian Racing Group (ARG) announced on Wednesday that it would be cancelling the 2020 event, scheduled for November, and pushing its inaugural visit to Mount Panorama back to 2021.
While ARG and Bathurst Regional Council had developed a COVID-safe plan, the logistics of bringing more than 2000 crew, volunteers, drivers and cars to Bathurst when state borders were closed and required mandatory quarantine proved too difficult.
ARG CEO Matt Braid said organisers faced an impossible situation.
"We have waited as long as practical to make this decision but we needed to consider local businesses, competitors and their families, our volunteers and other service providers and provide a timely decision so as not adversely impact their families, their plans or incur unnecessary costs," he said.
"This event was not based around a singular product but a wide and varied motor sport entertainment package which involved over 2000 people attending before the inclusion of fans, families, friends, sponsors, service providers, event staff and broadcast personnel.
"To deliver an event of this magnitude required it to be delivered in the right way and in the current environment that is just not possible."
The Bathurst International was announced in 2019 as the long-awaited fifth event for Mount Panorama, which would take up the last spot on the calendar for a full-track closure.
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It was meant to provide international drivers with a rare opportunity to race at the iconic circuit in various categories, but COVID-19 restrictions meant they were unlikely going to be able to attend this year had the event gone ahead.
Councillor Warren Aubin said it was "very disappointing" that the event couldn't go ahead in the original or revised formats.
"It's unfortunate, but I guess in the times that we're going through at the moment, it probably wasn't unexpected," he said.
This is the second of the major motor sport events at Mount Panorama that won't go ahead in 2020 due to the impacts of the virus.
It is another blow to the Bathurst economy and businesses, which are also going to miss out on the usual injection from the Bathurst 1000 this month.
"It is not a win for anyone and unfortunately it's another blow to the local economy," Cr Aubin said.
"Mount Panorama does supply that economic boost to the city and its businesses, so we're going to have to wait until next year to replenish the coffers from those events."