Dáil debates

Tuesday, 23 April 2024

Saincheisteanna Tráthúla - Topical Issue Debate

Sports Events

9:00 pm

Photo of Pa DalyPa Daly (Kerry, Sinn Fein)
Link to this: Individually | In context

It is absolutely mind-boggling this Government has turned down the opportunity to host the World Rally Championships in Kerry, Waterford and Limerick over the next three years. Motorsport Ireland has been forced to decline the invitation due to lack of funding coming from Government. An event screening application was submitted to the Department back in October. We had the chance for a relatively limited amount of money of €3 million to €4 million per year for three years to showcase the whole of Munster to viewing figures of about 600 million and to have thousands of people thronging towns and cities in Munster for those years. I am aware there was a funding difficulty and a problem with timing, but the Government could have explored other options and made the funding conditional on it perhaps taking place during the shoulder season to avoid clashes with the tourism situation. It is clear there was nobody in government prepared to take this on and drive it. The lack of interest from Government and the Government parties is absolutely disgraceful.

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
Link to this: Individually | In context

Motorsport Ireland put together a bid to host a round of the World Rally Championships which would include Limerick, Kerry and the south east and host a stage of the World Rally Championships over the next three years. Many of us, especially those with a passion for the sport, were delighted to hear this. Businesses, especially in the hospitality sector, were keenly aware of the opportunities this presented.

We in Limerick will pull together to showcase our wonderful county, a county that is rich in history and culture and that has much to offer. A real opportunity was not grasped by Government. There is no doubt that the failure of Government to engage with Motorsport Ireland's bid to host rounds of the World Rally Championship is a major blow for Limerick, its business community and its people. Limerick will now miss out on hosting the rally. That did not happen by accident but as a result of Government failure. Despite repeated requests from Motorsport Ireland for feedback on its application and requests to meet the Minister, the body was met with almost complete silence. This represents an opportunity unforgivably squandered by the Government. Once again, the people of Limerick have been let down by Government. We had an opportunity to host that rally but it was squandered by the Government's inaction.

The Minister of State, Deputy Thomas Byrne, has shown utter contempt for Limerick and for the motorsport community in his reported failure to engage properly with Motorsport Ireland following its submission last October. As everyone knows, Motorsport Ireland made its proposals to the Minister of State in June 2023. It outlined its plans to showcase Ireland on the world stage by bringing the World Rally Championship to Ireland over a three-year period. It did as the Minister of State advised and submitted an application to the major sports event unit last October. Despite repeated requests for feedback on that application and requests to meet the Minister of State, it was met with complete and utter silence. Will the Minister of State explain this to me?

9:10 pm

Photo of David CullinaneDavid Cullinane (Waterford, Sinn Fein)
Link to this: Individually | In context

I was at the launch of the three locations, Waterford, Limerick and Kerry, at the headquarters of Motorsport Ireland in January of this year. There was a lot of enthusiasm. Many people were in the room, including representatives from chambers of commerce, motorsport enthusiasts and people from different local authorities who were part of the consortium that made the successful bid to host the World Rally Championship. I know at first hand that, in Waterford, the local council, the CEO of that council and many others put a great deal of effort into this. It was a real slap in the face when Motorsport Ireland had no choice but to pull the event from Ireland. We had an opportunity to showcase the best of Ireland, Kerry, Limerick, Waterford and the south east. In its response, the Government said that it was looking for additional information and independent economic assessments. All that was being looked for was a maximum of €15 million over three years to host a world rally. It is staggering that the Government would let the ball drop like this. It shows the incompetence of the Minister of State and the Government that they messed up something that, in reality, you could not mess up if you tried. It is a spectacular failure on the part of this Government. The Government talked about independent economic assessments. How does it not trust the local authorities in the regions, which supported all of the bids? It is absolute nonsense and a monumental failure by this Government and by the Minister of State.

Photo of James BrowneJames Browne (Wexford, Fianna Fail)
Link to this: Individually | In context

I thank the Deputies for their contributions. I am taking this issue on behalf of the Minister of State, Deputy Byrne, who is unavailable to answer this question today as he is abroad on official business.

At the outset, it is important to note that, before the Department and Government commits public moneys to supporting the hosting of a major sports event in Ireland, a significant range of factors needs to be taken into account. These factors include the projected cost to the State, the expected economic benefits accruing to the State and the proposed event’s capacity to contribute to wider policy objectives such as increasing physical activity and participation in sport and aligning with national environmental and sustainability policies. It is also imperative to ensure that, whenever Ireland is responsible for the hosting of a major sports event, adequate preparation and engagement with relevant stakeholders is undertaken. This includes consulting with all those who will be required to provide services to deliver the event including, for example, local authorities, An Garda Síochána and medical and transport providers. Account must also be taken of the impact that an event might have on existing businesses and daily life. In the majority of instances where Ireland has been selected to host a major sporting event, several years of advance preparation were needed.

In June 2023, the Minister of State, Deputy Byrne, met with Motorsport Ireland, at its request, to discuss its proposals to host rounds of the FIA World Rally Championship commencing as soon as 2025. Some months later, in October 2023, the Department received a formal proposal from Motorsport Ireland which sought significant public monies from the State towards supporting the hosting of rounds of the FIA World Rally Championship. As noted, Motorsport Ireland proposed that these rounds would commence as soon as 2025 with further rounds to follow in 2026 and 2027. In light of the relative immediacy of the proposed start date for hosting the World Rally Championship, commencing as soon as 2025, the Department was unable, at this time, to commit significant public moneys towards supporting an event starting in 2025, given the need for thorough further assessment. However, the Minister of State, Deputy Byrne, advised Motorsport Ireland that the Department is prepared to fund an independent economic analysis and business case assessment should hosting of the World Rally Championship in later years, beyond 2025, be feasible.

For the sake of clarity, it should be noted that the independent economic analysis and business case assessment is separate to the assessment the Department has already undertaken. The Department would have to procure outside independent expertise to conduct the economic impact work, which would examine all of the possible associated costs and all of the benefits to the State accruing from the hosting of this event. I note that Motorsport Ireland has welcomed this commitment and has advised that it will engage with the event promoter regarding the feasibility of alternative hosting years. It is now a matter for Motorsport Ireland as to whether it wishes to submit a formal request to the Department to commit public monies towards undertaking the separate independent economic analysis and business case assessment.

It is important to emphasise that, in its initial assessment, the Department considered the experiences of hosting this event in the past in Ireland and outside of Ireland. The Department also engaged with key stakeholders, including Fáilte Ireland and Sport Ireland. In undertaking this assessment, the Department identified potential issues regarding Motorsport Ireland’s proposal, including the likely return on investment, the displacement impacts of holding an event in busy tourism months and capacity concerns. These concerns are such that it would not be prudent to commit Government funds to the proposal without the usual thorough investigation normally undertaken prior to committing to hosting major sports events. These factors underline the need for adequate time to consider any proposal for the hosting of major sporting events. A Government decision would also likely be needed in order to approve the allocation of the significant public moneys that are required for hosting a major sports event such as the World Rally Championship, including costs in areas such as security, transport and other logistical issues.

Photo of Pa DalyPa Daly (Kerry, Sinn Fein)
Link to this: Individually | In context

It is very rare that, the week before Christmas, a meeting would take place on the Tralee campus of MTU at which members and representatives of Tralee Chamber Alliance, nearly all of the local councillors and all of the Kerry TDs were present. That shows their enthusiasm when they saw an opportunity to bring a major event such as this to County Kerry in the coming years. I note the Minister of State's reply. I will be speaking to local representatives of Motorsport Ireland on committing to a separate economic analysis and business case assessment. I hope that more flexibility than has been shown heretofore will be given when speaking to the local representatives in order to get this over the line.

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
Link to this: Individually | In context

As I have said, last week, Motorsport Ireland was informed that the major sports event unit would need another six months to process its application. This is shameful. How did this happen? As a result of the time delays, Ireland will no longer be considered, which represents a major blow to Motorsport Ireland, Limerick and the wider community. It is simply not acceptable that Motorsport Ireland was met with nearly complete silence from the Department and from the Minister of State. It is the duty of the Minister of State and his Department to engage with and be supportive of all national governing bodies. Their failure to do so with Motorsport Ireland represents an unforgivably squandered opportunity for Limerick. The World Rally Championship was supposed to come to Limerick and showcase our wonderful county. Limerick people are becoming well used to a Government that is out of touch and out of road with no ambition and no energy. The Government has shown utter contempt for this application. As I have said, it is a missed opportunity.

Photo of David CullinaneDavid Cullinane (Waterford, Sinn Fein)
Link to this: Individually | In context

In his response, the Minister of State said that there needs to be sufficient engagement with relevant stakeholders when considering funding events like this. He mentioned local authorities, An Garda Síochána and existing local businesses. One of the leading advocates of the Waterford bid was the CEO of the council. Local councillors and all of the Oireachtas Members were behind the bid. An Garda Síochána was present when the bid was launched and was working with the local authority. The chamber of commerce was also a lead advocate. Not only were stakeholders engaged with this, they were enthusiastic supporters and got behind the bid. They did not drop the ball. It was not the chamber of commerce or the local authority but the Government and the Minister of State. This is a big missed opportunity and the people of Limerick, Kerry, Waterford and Ireland are the losers.

9:20 pm

Photo of James BrowneJames Browne (Wexford, Fianna Fail)
Link to this: Individually | In context

As previously stated, the Department is open to further engagement with Motorsport Ireland on this matter should the organisations engaging with the event promoter show that the hosting of the World Rally Championship in later years would be feasible. The Minister of State, Deputy Thomas Byrne, has informed Motorsport Ireland that his Department is prepared to consider supporting the hosting of the WRC in the years beyond 2025, if alternative hosting years are possible. He is also prepared to commit to an independent economic analysis in this regard. The Minister of State has written to Motorsport Ireland to reiterate this and to offer that organisation a meeting in the near future.

Major sports events have the potential to deliver a range of benefits to the State, including increased trade and tourism activity and furthering of sporting goals, as well as boosting national and community pride and well-being. Whether the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media or the wider Government supports the hosting of a major sports event in Ireland depends on a wide range of factors, as stated. These include the projected cost to the State, the expected economic benefits accruing to the State, the event's capacity to contribute to wider policy objectives, and alignment with national environmental and sustainability policies.

While various figures have circulated in the media regarding the potential economic benefit of hosting the WRC rounds in Ireland, it should be noted that the net economic benefit to the island of Ireland from hosting WRC rounds is significantly less than what has been reported in the media. It is imperative for the credibility of the event and the Government's own major events assessment process that the potential economic benefit of the current proposal is independently fully assessed. This will allow for a fuller assessment of the value-for-money proposition with regard to any investment made and will facilitate compliance with the requirements of the public spending code.

The major sports event unit in the Department has an extensive portfolio of events that are in the active planning stage, including next month's UEFA Europa League final, the 2027 Ryder Cup and the 2028 UEFA European Football Championship. That Department manages the assessment of new proposals for other major sports events, in parallel with the ongoing workload of supported events. The Department takes this function very seriously and allocates the time and resources needed to assess each proposal correctly and, if approved, helps to deliver the best possible event for Ireland.