Cycling Australia made the announcement, stating that its funding would be geared toward other disciplines, notably the track, because they represented improved Olympic medal prospects.

The Tasmanian Government, which had pledged $400,000 toward the program, and the Tasmanian Institute of Sport, where it was based, both expressed disappointment at the announcement.

They stressed that established elite riders, such as Launceston's Rowena Fry, would continue to be supported.

``This has been a very difficult decision to arrive at and one that has come after a considerable period of review,'' said Cycling Australia CEO, Graham Fredericks.

Sport Minister Michelle O’Byrne said the State Government was extremely disappointed with the decision.

She said the State Government would ensure that Australia’s number one ranked female MTB athlete in Tasmanian Rowena Fry was not disadvantaged by the decision.

“Rowena has made outstanding progress in the sport and the fact that she is now identified as Australia’s best female mountain biker and is on a performance curve to compete in London at the 2012 Olympics is a tribute to her dedication and perseverance.”

Ms O’Byrne said there had been some significant benefits for the TIS from its involvement in the program.

“In particular, mountain bike head coach Neil Ross has been extremely valuable in sharing expertise and skills to TIS athletes and coaches.”

ROB SHAW'S FULL REPORT AND REACTION IN THE EXAMINER TOMORROW