Benalla Rural City Council and the Benalla Festival Committee had hoped to be able to host the event this year.
However after meeting with key stakeholders last week they determined the festival, which was scheduled to run from October 30 to November 7, could not take place.
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The unpredictability of the Delta strain and the difficulties associated with travel to Benalla for performers, participants, vendors and visitors was considered too high-risk given the current COVID-19 case numbers and restrictions.
However there may be some light on the horizon, and the festival committee is monitoring the situation and considering future options.
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Festival Committee chair and councillor Don Firth said while the decision was disappointing, the committee had to consider the health of the wider community and the implications for all involved.
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“We understand that this is not the news everyone was hoping for, but we are keen to explore alternatives,” Cr Firth said.
“I would like to thank all committee members, community event organisers and participants for their work in planning for the festival so far and look forward to doing what we can for the community, when we can.”
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