SPORTING ASSOCIATIONS involved in the Lansdowne Road project have assured the Government that they can meet their financial obligations in the redevelopment of the stadium.
The assurances come as queries are being raised by Fine Gael's Olivia Mitchell TD about the projected cost, which is estimated by the Government to have increased by €101 million in the last 11 months, from €365 million to €466 million (including VAT).
The Government's own contribution is €191 million.
Copies of departmental briefings obtained by Ms Mitchell under the Freedom of Information Act show that, after last year's general election, the minister for arts, sport and tourism at the time, Séamus Brennan, was told the projected cost of redeveloping the stadium was €365 million. The department has confirmed that this figure included VAT.
However, a further briefing when the current Minister, Martin Cullen, took up the job last month gave the projected cost as €466 million (including VAT).
Secretary general of the Department of Arts, Sport and Tourism, Con Haugh, recently wrote to the Football Association of Ireland (FAI) and the Irish Rugby Football Association (IRFU) to confirm that they would meet their financial commitments, and those assurances were given.
A department spokeswoman yesterday denied that Mr Haugh's letter had arisen out of concern over increased costs, saying: "Letters of this kind would issue as a matter of course when it comes to major infrastructural projects."
She stressed that, "in terms of the prudent management of a project of this kind, that would be normal, standard procedure". In response to his letter, Mr Haugh had "received assurances from both organisations, the FAI and the IRFU, in relation to the funding that they are committing to the project".
Both of the associations concerned told The Irish Times they would be in a position to meet their commitments. An FAI spokesman said: "We have responded to that letter to confirm that the FAI has the finances in place to cover all its capital commitments relating to the Lansdowne stadium." An IRFU spokesman said: "As far as the IRFU is concerned it will meet its commitments as outlined."
In January 2002, the Government agreed to provide €191 million, phased over five years to the joint IRFU/FAI project for redeveloping Lansdowne Road as a 50,000-seater stadium for soccer and rugby by 2010. By the end of last April, €84.5 million of this had been drawn down.
Ms Mitchell, who is her party's spokeswoman on arts, sport and tourism, said: "The Government has capped its contribution at €191 million but what is of concern now is the security of that investment in the face of escalating costs." She continued: "The Government's responsibility is to clarify where the financial responsibilities now lie, and to reassure taxpayers that their contribution of €191 million is secure and that the stadium can be completed and paid for as planned."
A spokesman for the Lansdowne Road Stadium Development Company said: "All of the figures in relation to the stadium have been agreed with the Government since last year."
He added: "While the budget has increased this has at all times been planned. Any additional expenditure in no way impacts on the Government contribution which is capped at €191 million. The additional expenditure planned by the IRFU and the FAI is for additional facilities which are there to ensure the stadium will be operational all year round."
Additional facilities include an underground car park and enhanced provision for catering.
