James Browne (Wexford, Fianna Fail) | Oireachtas source

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.

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