Shane Ross (Dublin Rathdown, Independent) | Oireachtas source

I welcome the co-operation we have had from all sides of the House on this Bill. I would like to mention in particular Deputy Troy who has already interjected on this Bill and made a contribution, Deputy Munster and others on the joint Oireachtas committee who have shown an interest in it over time. I have been supportive of the principles behind the Bill. That does not mean I expect it to pass without controversy.

I appreciate and welcome any scrutiny of it, and I recognise the need for this.

As Deputies will know, this is an enabling Bill to allow the Minister for Transport, Tourism and Sport to support the bid and the hosting of the Rugby World Cup in 2023. The Rugby World Cup is one of the largest global sporting events after the Olympics and the FIFA World Cup. It is held every four years, with the next tournament to be played in Japan in 2019. It has grown substantially since its inauguration in 1987, and it is expected to continue to grow in the future.

The hosting of a Rugby World Cup by Ireland has the potential to be very beneficial to Ireland in terms of visitor numbers and sporting and international profile, and for communities across the island. A successful bid for the Rugby World Cup would have the dual advantage of promoting sport and tourism. There would be very considerable tourism potential as the tournament would take place during Ireland's shoulder season for overseas tourism, between mid-September and late October. It is estimated that the tournament would draw approximately 450,000 high-spending visitors. There would be many other benefits to the country, not least the profile received through television coverage of the tournament across the world and the exposure that the country would get through the thousands of visiting media. In addition, hosting a Rugby World Cup on the island of Ireland would provide communities all over Ireland with the opportunity to host teams from places as diverse as Tonga, Georgia, Japan, New Zealand and Argentina.

The Governments in the North and South view hosting the Rugby World Cup as a unique opportunity for Ireland and have been supporting this project since 2013, when the initial feasibility study was received. This study was the subject of in-depth examination by the cross-Border Rugby World Cup Working Group during 2014. Its report was agreed by the Government, and in December 2014 it was agreed that the Minister for Transport, Tourism and Sport should support the preparation of an all-island bid by the IRFU, in co-operation with the Northern Ireland authorities. The bid also has the full co-operation of the GAA, which has put key stadiums, such as Croke Park, at the disposal of the bid.

An oversight board, chaired by former Tánaiste, Dick Spring, and comprising key sporting and business figures and Government representatives, has guided the compilation of the bid. This has been supported by interdepartmental groups in both jurisdictions, chaired respectively by the head of the Northern Ireland Civil Service and the Secretary General of the Department of the Taoiseach. My Department led the co-ordination of the public sector input and managed relations with the IRFU and the Department of the Economy in Northern Ireland. The Government has regularly reviewed the project at Cabinet and approved the submission of the applicant and candidate phase bids.

Ireland has now completed two of the three phases to the bid to host the Rugby World Cup in 2023. The applicant phase was completed on 25 August 2016, with the submission of a bid questionnaire comprising detailed responses to over 90 questions. Ireland then progressed to the more detailed candidate phase in October 2016. The candidate file posed over 350 questions, and the compilation of the bid required extensive Government involvement and support. As part of this phase, the World Rugby technical review group visited candidate countries to discuss the progress of the compilation of the candidate file. The visit to Ireland took place on 21 and 22 March. It viewed key stadiums and met with the President, Taoiseach and Ministers, the IRFU and the oversight board and received a number of presentations from sectoral experts.

The formal bid to host the Rugby World Cup was submitted on 1 June 2017. The candidate file ran to approximately 1,000 pages, setting out responses on a range of topics, including finance and governance, transport, match venues, security, ticketing strategy, accommodation provision and commercial rights protection.

In response to the templates issued by Rugby World Cup Limited on 7 April, the bid also contained draft guarantees and undertakings seeking the support of governments to stage the tournament in 2023 for the payment of the tournament fee, the underwriting of the tournament budget, and the provision of public sector supports for the staging of the tournament. They will be discussed further with Rugby World Cup Limited over July, with final versions to be agreed and signed by 31 July.

At an earlier stage of planning for Rugby World Cup 2023, the preliminary legal advice was that legislation was not likely to be required in respect of the State's contribution to a new company that might be established regarding hosting Rugby World Cup 2023. After further examination, however, the Attorney General's office advised in early May that express statutory authority through the passing of primary legislation is necessary for a Minister to provide capital support to a tournament company and to provide the necessary guarantees and underwrites to Rugby World Cup Limited. This is based on the judgment of the Attorney General that there is no specific statutory power for the Minister for Transport, Tourism and Sport to expend money or give guarantees directly on a unique major sporting event such as the Rugby World Cup. Therefore, for the avoidance of doubt, the advice is that express statutory authority is required. This statutory authority must be in place before the Minister signs the guarantees. This means the Bill has to become law before 31 July.

Based on this advice, the Bill before the House has been drafted. The purpose is to enable the Minister for Transport, Tourism and Sport to provide the guarantees and undertakings as part of the bid and, if the bid is successful, enable the Minister for Transport, Tourism and Sport to support the staging of the tournament.

I will now outline the provisions of the Bill. Section 1 defines the terms used in the Bill.

On section 2, if the bid is successful a tournament company must be formed with the Irish Government, the Northern Ireland Executive and the IRFU as shareholders. Section 2 empowers the Minister to play a full part as a shareholder in that company. An agreement on a comprehensive governance structure for the envisaged company that would protect the State's interests is currently being finalised between all three parties.

Regarding sections 3 and 4, as part of the bid the Government is providing an underwrite for the tournament budget and the provision to enable the Minister to give this underwrite is set out in section 3. The underwrite is to give Rugby World Cup Limited the assurance that the tournament would still proceed even if ticket revenues were not sufficient. The underwrite will cover any shortfall in the budget and would come into effect only if the tournament revenues did not cover the tournament costs. Current projections are that the tournament company will make a substantial surplus, which would accrue to the Governments and, in these circumstances, the guarantee would not be called upon.

As with all previous Rugby World Cups, the hosting of the tournament will be funded by ticket revenue. Those revenues will begin to be received in 2022 and the company will be in operation for a number of years before those revenues are available. It is planned that the tournament company would source the cash flow requirements in those years from commercial sources prior to the receipt of ticket income. In the event that unexpected cash flow needs arise, section 3 enables the Minister to advance funding, including loans, to a tournament company.

A number of rights held by Rugby World Cup Limited, such as those concerning selected sponsorship categories, hospitality and licensing, are on offer for potential hosts to bid. This matter is still under negotiation and Rugby World Cup Limited may decide not to sell any of these rights. The provisions in sections 3 and 4 grant the Minister all potential options to support any purchase of these rights and to structure that purchase in such a way that would be of best advantage to the State and the tournament.

Section 5 enables the Minister to pay the tournament fee for the territory of the island of Ireland to be the host territory for Rugby World Cup 2023. The bid proposes that, after receipt of the projected surplus from the operation of the tournament company, the Government will pay the tournament fee directly to Rugby World Cup Limited. As with the tournament underwrite, this support would be shared with Northern Ireland along an agreed ratio. These provisions in sections 2 to 5, inclusive, would be exercised with the consent of the Minister for Public Expenditure and Reform and the Minister for Finance.

On section 6, a number of other assurances are sought from the Government by Rugby World Cup Limited that the broader environment will be suitable to stage the tournament. These include protection for its trademarks and intellectual property and the support of the Garda in the provision of a secure environment to host the tournament. Section 6 empowers the Minister to provide such undertakings on foot of a decision of the Government. Sections 7 and 8 cover expenditure under the Bill and the commencement provisions.

Hosting Rugby World Cup 2023 is a unique opportunity for Ireland. It would be of great benefit to the country from sporting, economic, cultural and profile perspectives, and this Bill enables the Government to fully support it. Working closely with our colleagues in the Northern Ireland Executive, the Government has been examining the case for hosting for over four years now and we are confident of the case for hosting and of the strength of the bid. The support of the House through the passing of this Bill would send a strong signal to World Rugby of Ireland's desire to win the bid and to host the tournament in 2023. I commend the Bill to the House.

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