The Isle of Man Government announced the decision in a bid to retain the Island's disease-free status, bearing in mind the Isle of Man's proximity to UK outbreaks of the disease in Cumbria, Scotland and Northern Ireland.

The Isle of Man is a self-governing island halfway between England and Northern Ireland. The 33 mile by 13 mile isle is known for its TT (Tourist Trophy) motorcycle races, offshore banking industry and as the birthplace of the Bee Gees' Gibbs brothers. Interestingly, this May, this tiny isle is ready to begin third-generation (3G) mobile phone services ahead of the rest of the world, after Japan's contender had to postpone their launch of services until October.

Motorcycle racing during the two week festival, scheduled from May 26 to June 8, has been cancelled, only the first time the event has been called off in its 94 year history outside war time. Joey Dunlop, killed in a racing accident in Estonia last July, is the most successful racer in the history of the Tourist Trophy races, with 26 wins from 1977 to 2000.

The Isle of Man Department of Tourism and Leisure, led by Minister David Cretney, had put forward plans under which the TT races could take place with a programme of increased precautions, including an enhanced disinfection regime, 'no-go areas' for 2001 in the countryside, and avoidance of contact between visitors and the rural environment including livestock, but the Council of Ministers has decided that the races would constitute a significantly enhanced risk to animal health and the agricultural industry and should be cancelled.

Events traditionally staged to support the TT sporting action, including displays by the Red Arrows, concerts, fireworks displays and numerous entertainments organized by Island pubs and other businesses, will go ahead. "A warm welcome still awaits visitors who traditionally travel to the Island at this time of year," said Mr Cretney. "It is of course, a major disappointment for many that Government has taken what is seen as an essential precaution to safeguard our own livestock industry, but visitors are welcome to enjoy other aspects of the traditional festival and we will be concentrating our efforts in the town centres for this year."

The TT races traditionally attract between 35,000 and 40,000 visitors who are estimated to be worth £16 million in expenditure to the tourism industry on the Island.

Mr Cretney has met with his counterpart in Treasury, Richard Corkill and his Treasury colleagues, as part of contingency planning in the event of cancellation, and a figure in excess of £4 million will be available to help offset the financial losses many businesses will suffer as a result of cancellation.

Despite the loss of the TT, the Isle of Man remains very much open for tourism business. Although hills and footpaths are closed, the Island's national glens are open to walkers, together with a number of town heritage trails and cycle trails. Key heritage attractions are open as is the Island's vintage steam and electric railway network.

The Minister said today, "I have worked very hard for five years with the industry and each year we have improved the economic contribution of tourism via our marketing strategy, combined with the principal carriers being pro-active in marketing the Isle of Man. It would have been very easy for me to have thrown in the towel given this major set-back, but I am not prepared to let the industry down or walk away and we will continue to market our lovely Island and what it has to offer through this very difficult time."

All passengers arriving on the Isle of Man from the UK will continue to be asked to pass through disinfectant treatments introduced when foot-and-mouth disease was first detected in the UK to protect the Island's agricultural industry which is of major importance to the Island.

Consideration was given to the possibility of postponing the TT Races to later in the summer rather than total cancellation. This option was not logistically possible because of a lack of ferry capacity, existing non-race bookings and clashes with other events. In 1966 the national Seaman's Strike caused the TT Races to be postponed until autumn that year when they were staged back-to-back with the Manx Grand Prix. It is hoped that the situation in the UK will have improved sufficiently by August to permit the staging the Manx Grand Prix, August 18 to 31.