Tommy Broughan (Dublin Bay North, Independent) | Oireachtas source

The Minister might remember that it was almost 25 years ago when Gay Mitchell, the former Deputy and Minister, was Lord Mayor of Dublin and put forward the idea that Dublin and Ireland should consider bidding for the Olympic Games. The proposal was controversial given the history of grossly inflated and costly FIFA World Cup and Olympic Games. Some of these events have expanded even further and have cost host countries vast sums since the early 1990s. The recent FIFA World Cup and Olympic Games in Rio de Janeiro seem to symbolise the exploitation of host countries by the wealthy elites running world football and Olympic sports. No one can doubt that much of the expenditure that did not go on lasting infrastructure in Brazil for the 2014 and 2016 events would have been far better spent on essential health and education services for the people of Rio, Recife, São Paulo and the other great Brazilian cities. While the Athens Olympiad in 2004 did enable Greece to greatly upgrade its transport and other infrastructure, the massive costs were a major factor in the growth of Greece's vast national debt, which was greatly magnified by the subsequent EU-imposed austerity and debt repayment programmes.

Consequently, the Government and Oireachtas need to carefully evaluate the likely costs and benefits to Ireland from the proposed hosting of the 2023 Rugby World Cup. I am sympathetic to the general thrust of the amendments before us. The Rugby World Cup needs to be sustainable and singularly well run with tight financial controls. From what I have read and heard of the proposal from my former colleague, Dick Spring, and the Ireland 2023 bid oversight board, those involved seem to have tried hard to meet the necessary strict requirements.

Through major funding of the GAA, the FAI and the Irish Rugby Football Union, the people already have contributed to a network of stadiums throughout the island that are of high quality and easily fulfil the criteria necessary to host the tournament. The GAA, whose director general is a member of the 2023 bid oversight board, must be greatly commended on working closely with the IRFU and providing its iconic stadiums, including Croke Park, Páirc Uí Chaoimh, Casement Park and Fitzgerald Stadium, to support the leading rugby grounds such as the Aviva, Thomond Park and Ravenhill Kingspan. The key sporting infrastructure is already in place and is easily the equal of the infrastructure in New Zealand or Wales, which have hosted previous tournaments. Moreover, mention of Wales reminds me that Ireland has been a co-host of this tournament twice already.

It is striking that the cost of the bid fee for the Rugby World Cup has escalated over the years from £66 million for New Zealand in 2011 to £80 million for England in 2015. The cost will be £96 million for Japan in 2019. This is expected to rise to £120 million in 2023, which could be the year it is held here.

Rugby World Cup Limited is registered in the Isle of Man. I am not sure of the significance of that, but it is an interesting fact. The tournament company mentioned in section 2, of which the Irish Government, the Northern Ireland Executive and the Irish Rugby Football Union, will be shareholders, as well as running the tournament, is underpinned in sections 3 to 7, inclusive, by a series of onerous financial support guarantees to the tournament owner, Rugby World Cup Limited. These include, in section 3, underwriting the Rugby World Cup operating budget of up to £120 million and providing for the advance of loans, if necessary, to the tournament company. Section 4 provides for the purchase and disposal of commercial rights, although we have no estimate of the likely cost-benefit of such rights. Section 6 commits the State to the provision of security, facilitation of participants, public infrastructure and all the other requirements to stage the tournament. The deadline by which the Minister must sign these guarantees has been set at 31 July 2017.

This Bill, in terms of its key provisions, commits the State to considerable potential spending. Perhaps on Committee Stage the Minister will inform the Dáil of the likely costs and benefits under section 4, which deals with the commercial rights relating to the tournament. He might also enlighten us as to the input, if any, of the Government into the feasibility studies, how the Government was consulted in the context of the original feasibility study and about the follow-ups that have been undertaken by the committee. I understand that Ireland’s bid is targeting ticket sales of 2 million and that the receipts relating to these sales will be retained by the tournament company. I echo the comments made by my colleagues, Deputy Boyd Barrett and Barry, to the effect that ordinary supporters of clubs such as Clontarf or Suttonians, both of which are located in my constituency, must be able to attend the great games. Can the Minister give us an estimate of what benefits will accrue to the State from ticket sales and the much more lucrative media rights and sponsorship? The issue of free-to-air has, quite rightly, been raised by Deputy Eamon Ryan.

The involvement of the Northern Executive in this project is important and noteworthy. It highlights the fact that the IRFU was able to maintain an all-Ireland identity after 1922 while the much more popular game of association football was sadly divided when southern soccer clubs formed their own football association. The all-Ireland quality of rugby football is now one of the game’s most attractive qualities. In addition, rugby has evolved in recent decades to become more than a game of the elite and upper middle class. Since the professional era began in the 1990s, rugby has generally flourished and most regions of the State now have rugby football clubs. The exploits of the national team in recent decades and the performance internationally of the four provincial professional clubs has greatly enhanced our national life. The achievements of Leinster, Munster, Ulster and Connacht and the Ireland team often lifted national spirits in the austerity years since 2008. This is a major reason why, in principle, I am supportive of this Bill. I wish the former Tánaiste, Dick Spring, and the bid oversight committee success on 15 November next.

I understand that the World Rugby technical review group has already carried out a two-day fact-finding mission to Ireland and that this group will make a recommendation to World Rugby in October. I presume it will be its decision as to whether we are successful. It is claimed by Ernst & Young that the England-Wales World Cup in 2015 was worth at least £900 million to the UK, with a multiplier effect of up to £2 billion. The 2011 World Cup in New Zealand is said to have generated net profits of £120 million, with a net profit for England-Wales 2015 of approximately £200 million. The proposers also rightly stress the role of the Irish diaspora in supporting the Ireland football and rugby international teams and the closeness of the Irish venues to the three British nations across the Irish Sea and to rugby supporters in our competitor nation, France.

It is critical that the Irish World Cup Committee also proposes and delivers financial support for the further development of sport in the more deprived areas of our country. I echo the statements of previous Deputies in this regard. For example, efforts are being made by Dublin City Council, Fingal County Council and the other Dublin local authorities to develop the game of rugby in lower income areas where it is traditionally unknown but these efforts need significant support. Financial benefits from the event should be earmarked for the many soccer, Gaelic, boxing, athletics and other sports clubs in areas where facilities are minimal or non-existent. I acknowledge that the Minister has been open to receiving delegations from sports clubs from some of the lower income areas where there no facilities and where, for example, in terms of boxing, valiant groups of coaches are supporting 50 or 60 children and youths and giving them an outlet on a shoestring budget and without a proper headquarters. Some of the profits from this event must be invested in our communities, particularly those that are most deprived, and across the island from west Belfast to north and west Dublin.

Ireland has had a shockingly poor record since 2008 in the provision of essential infrastructure, a point made a few minutes ago by Deputy Ó Snodaigh. Most years since the crash, the Government has barely reached depreciation and essential replacement levels of investment in health, education and transport facilities. Owing to a continuous lack of investment, much of our roads and other infrastructure is crumbling. The virtual cessation of housing supply has crippled our society and left thousands of families and individuals homeless. Ireland needs targets to reach for and attain to encourage badly needed investment. Regardless of whether the rugby World Cup bid is successful - I hope it is - we must greatly expand a national investment programme. The summer of 2023 is a reasonable target date for a first phase of national regeneration in respect, for example, of the metro north line from Swords and Dublin Airport, the cross-city Luas in Cork and Galway, which we have discussed many times in this House over the past two decades, the building of the north-west motorway and the massive upgrade of roads such as the N71 and N72, which, in my view, are currently unsafe. These should be priorities in the transport infrastructure brief. These projects will enhance Ireland’s attraction for visitors of all kinds, including rugby followers, and they will remain valuable to our people long after 2023. This, too, is a target to attain.

Our constituents will question the necessity of the Government underwriting a major event or festival and ask whether event organisers should not take all the risks involved. In terms of the organisation that is World Rugby, there are ten or 12 major countries, significant organisations and many other countries where the game is played and people are of the view that should be the case for this event and all events. Perhaps, internationally, institutions such as the EU and United Nations need to examine the structure of the organisation of major sporting events like the Olympics, the Football World Cup, the Rugby World Cup and all the other major continental competitions.

The bid oversight committee and Dick Spring had to operate under the current ground rules relating to these events. They have made a huge effort to get this competition for Ireland and I wish them every success. I will be supporting the Bill.

See this speech in context