The State could be left footing a large bill if the troubled World Equestrian Games, due to take place in Ireland in 1998, make a loss or fail to go ahead.

The Comptroller and Auditor General, Mr John Purcell, told the Dail Committee on Public Accounts that the Irish operators of the games might return to the State seeking further financial support.

At the moment, grants worth £750,000 have been paid out and a further £250,000 is scheduled for later this year. The amount guaranteed by the Government in the event of the games making a loss stands at something like £1 million".

The major sponsor of the games, Nissan, has recently withdrawn, at a loss of £1.6 million. New proposals for sponsorship have been put to the government.

Mr Matt McNulty, director general of Bord Failte, said Nissan had withdrawn because of a continuing lack of clarity" over how much TV coverage the games would receive worldwide. The games, which have a projected budget of £9.6 million, are due to take place in July and August, 1998. An international TV deal has still to be finalised. Page 2