Dáil debates

Wednesday, 5 July 2017

Rugby World Cup 2023 Bill 2017: Second Stage

 

7:25 pm

Photo of Imelda MunsterImelda Munster (Louth, Sinn Fein) | Oireachtas source

It is fair to say that all parties are hopeful that Ireland's bid for the 2023 Rugby World Cup will be successful. I commend all those working on the bid and wish them every success. This Bill is part of that process. It is unfortunate that the Bill has been so rushed. Our understanding was that legal advice received in February was found to be incorrect and the Department had only been aware of the need for this legislation since early May. We are not sure how or why that happened but this is certainly not the preferred way to legislate.

This Bill deals with a hypothetical situation. It is underwriting and providing finance and support in the event that Ireland's bid is successful because we are speculating on a sporting event that may or may not take place in six years time. The Bill is extremely vague and, in some instances, it seems that further detail cannot be provided at this point in time. It is also a worry when Deputies are being asked to agree to the handing over of a very substantial sum of money to a company that has not been established without having concrete details of the sums involved or indeed even the process involved.

This Bill allows the Minister to provide financial support and funding for the tournament, including a guarantee of that budget, with the consent of the Minister for Public Expenditure and Reform and the Minister for Finance. I understand that a tournament fee of £120 million will be given by the Minister for Transport, Tourism and Sport to the company and that this money will act as a guarantee should the company encounter financial difficulties or in the event that the company is in arrears after the tournament. Additionally, it is expected that approximately £200 million will be required to host the tournament. I am assuming that this money will be spent on upgrading venues, improving public transport links, policing and other State services. I understand that this money is expected to be recouped through ticket sales. Could the Minister give us a bit more clarity on that? World Rugby will retain the television rights and the majority of the commercial and sponsorship rights other than a very small amount of commercial profit, which may be available to Ireland should World Rugby agree to it. Ticket sales are the only method the State has to recoup its spend. This is apparently how the Rugby World Cup has always operated but it is important to be mindful of that fact. Of course, it is suggested that the State could make a profit on that spend and that the £120 million guarantee will be reduced if the tournament is as successful as previous Rugby World Cups. If this all goes according to plan, that is fine.

However, we need to be mindful of potential problems and pitfalls and we must protect the State's interest in this situation. There are some issues that have not been addressed by the Bill and there are issues on which we require reassurance. We have no figures. I assume that those involved with the bid have an idea of figures. However, there are no figures in this legislation which could prove problematic down the road should the figures escalate.

Section 3(a) states that the Minister for Transport, Tourism and Sport will "provide financial support in respect of the tournament budget (including any guarantee of that budget)". This could be interpreted as providing a blank cheque. What are the checks and balances to manage the budget and to protect the State's interests? I would like some clarity from the Minister on that aspect.

This should be amended to ensure that the handing over of these sums of money involves Oireachtas support rather than merely the consent of the Minister for Finance. These costs could spiral, and it is also important that there is accountability. While I understand that the criteria for the bid are broad, some of the guarantees sought by World Rugby and which are provided for in this Bill are vast and vague, to put it mildly. While there may be no malice intended, the lack of detail could have unintended consequences. For example, section 6 of the Bill requires that the Minister provide undertakings to the provisions of security, public infrastructure and other such public services. This part of the Bill is also open-ended and I assume that more services could be added. Does this mean that An Garda Síochána will be at the full disposal of the company and the tournament for its duration? If there was a failure in one of these services, would the State then somehow be liable? There is much detail missing here and we seek clarity on all the issues I have raised.

In this Bill, we commit to providing adequate infrastructure and accommodation. It could be argued that, to date, we have failed to provide adequate infrastructure and accommodation for our own citizens, never mind hundreds of thousands of additional visitors. I ask the Minister to elaborate and give clarity on what is specifically envisaged by this, whether it is stadium access or broadband. We also currently have the scandal of families living in hotel accommodation. The previous Minister for Housing, Planning, Community and Local Government promised to have all families out of this type of accommodation by last week. This obviously has not happened. The remedies are also totally unacceptable. Hubs are not appropriate homes for families. We also have a shortage of hotel rooms in Dublin. Anyone who has tried to look for a room in the capital city knows that rooms are scarce, and would also know that the prices of rooms are scandalous. How would we accommodate all of our visitors? If we host the tournament without sufficient beds and accommodation, it would be disastrous for the State, but also for our reputation.

Another issue that needs to be tidied up is the arrangement between the shareholders of the company. The shareholders will be the Minister for Transport, Tourism and Sport, a Minister from the Executive in the North and the IRFU. The Minister is the only one who is providing this guarantee to the best of my understanding, and we need clarity on the position of each of the shareholders as well. I know the Minister said there was a ratio breakdown. I ask him to be a little more definitive on what exactly that is, and we also need clarity on commercial rights and sponsorships. It is important that we have a mechanism to ensure that there is a transparent and open process for the allocation of commercial rights and sponsorships. This system should be fair and open to all relevant, interested parties.

Despite all the issues and the clarity I have sought, and the fact that I have said the legislation is rushed, vague and vast - which is an understatement - Sinn Féin will be supporting the Bill. We recognise that, if this bid is successful, it has major potential to showcase Ireland and for tourism and sport in general. Having said that, we still have concerns regarding the lack of detail, the potential for difficulties down the road, the blank cheque, the overrun, the oversight, the costings and all of that sort of thing. As I said at the start, it is not a very acceptable way to expect to have this Bill hammered through in one day.

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