Dáil debates

Wednesday, 5 July 2017

Rugby World Cup 2023 Bill 2017: Second Stage

 

7:55 pm

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance) | Oireachtas source

That is the estimate referring to expenditure by people who would come to visit. That is obviously significant and would generate employment, spin-off activity and tax revenue.

I note in passing, because it is relevant, that we need to look again at the 9% VAT rate. The rate was brought in because the economy was on its knees. There was an argument about the need to resuscitate tourism, retail and so on when those sectors were on their knees. Those sectors have picked up significantly. I believe they have gained significantly from an economic recovery that, to say the least of it, is uneven in terms of who has benefited. In fact, many people are not benefitting. One group that is not benefitting is made up of low-paid, precarious, zero-hour or banded-hour contract workers. Many of these work in the hospitality, hotel, retail and bar sectors. Yet those sectors have benefited and gained a significant boon from the 9% VAT rate. I believe the case for that VAT rate has expired. I do not believe they need that boon anymore. At the least, it needs to be examined. I am keen to see that considered when we are thinking about who would benefit from the additional expenditure in the context of the Rugby World Cup taking place.

It is one thing to say that the State may get back revenue. However, I believe we must be absolutely certain that the State covers its investment from various sources - primarily, I would have thought this will come from areas like VAT – and that we would expect to cover any investment we put in or perhaps make a profit for the State out of it. I believe we should look at the issue of VAT. More generally, we need to be confident that we have a plan to recover any public moneys invested in this event. I do not believe it would be acceptable, although I do not believe we are in danger of it, to repeat some of the scandals we have seen in big sporting bids in some countries, whereby billions were put into projects that, after the events were concluded, were effectively massive white elephants. Such projects included stadia and infrastructure built but never to be used again by anyone.

When I was first asked about this six or eight months ago, the first thing I said was that if we are talking about building stadia then I would be against it, as much as I would like to see a sporting event. We are not talking about that, which I welcome. Therefore, we can be more confident that this event can work and not cost us. However, I would like to see and hear as much detail as possible about how the public interest and public moneys and so on are going to be managed and secured such that we do not lose out as a result.

I wish to echo the points made about free-to-air television viewing. That is critical. There would be rage, frankly, if public money was spent underwriting and supporting this bid only for a position to come about whereby not everyone was able to watch the tournament on television. There would be absolute anger. I warn the Government not to cause a problem for itself and everyone else and to ensure that does not happen. Otherwise, the Government will endure a backlash.

The point about ticket prices is critical. We need to ensure this is an event for everyone and not simply for an elite few. Rugby is not as it is sometimes presented, that is, purely an elitist sport. People from a vast cross-section of Irish society play rugby and they come from all different social backgrounds. However, let us be quite honest. Historically, there has also been in the Dublin and Leinster regions in particular an association with the more privileged sections of society. To some extent that has reflected the reality of the game in certain parts of the country. It is different in other parts of the country but we need to acknowledge this is a fact. Consequently, it will grate badly with people if we do not ensure that this event benefits everyone, that everyone is included, that everyone has an opportunity to go and that no one is prohibited because of the cost of so doing. We need to ensure that the benefits accruing to rugby and the rugby bodies and any benefits that accrue to the State go back into disadvantaged areas to enhance access to sport, rugby and so on. The benefits should go to clubs that perhaps are not part of the elite of the rugby world. They should go to the grassroots game and not only to what might be perceived as the more elite elements of the game.

These are critical matters and we need more detail from the Government about how all of this will be managed. We need to be sure that some of the more concerning outcomes – I am not saying they will transpire but they could and have done in other countries – do not transpire in the context of this bid.

I am broadly supportive and will not oppose the Bill. I support some of the amendments put forward by Deputy Eamon Ryan. I am keen to hear the Minister's response to those issues and the other issues of concern that have been raised.

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