Government mulls funding new stadium at Lansdowne

THE GOVERNMENT is considering funding a new national stadium at Lansdowne Road which would cost taxpayers millions of euro.

The Irish Rugby Football Union and the Football Association of Ireland want the ageing stadium to be re-developed as a 65,000-seater stadium at a cost of around €350m.

In a significant move yesterday, Tánaiste Mary Harney said she did not support a new stadium in Abbotstown and said the Lansdowne Road option could be prove to be much cheaper.

Her comments also expose a split in the Cabinet on the issue, with Sports Minister John O’Donoghue last week describing Abbotstown as his favoured option.

Ms Harney said the Government would be willing to provide funding for the IRFU and the FAI, but declined to say how much.

Informed sources, however, say the State could end up spending as much as €100 to €200m on a new version of Lansdowne Road.

This appears to signal a shift in Progressive Democrat policy, which previously ruled out any public money being used in the construction of a new national stadium.

Yesterday, speaking on RTÉ’s News At One, she said the Government would contribute “as little as possible” to a project.

“I’m not agreeing to a new facility at Abbotstown, we never ruled out the possibility of supporting the FAI and the IRFU. I don’t know what the nature of that support will be,” Ms Harney said.

“I think the FAI and the IRFU do require some pro-rata funding from Government and certainly that would be forthcoming in that context,” she said.

The sporting bodies’ plans for a re-developed Lansdowne Road will be formally considered by Government shortly, along with expressions of interest from more than 20 consortiums who want to build a national stadium in Abbotstown.

The Government is expected to make a decision on what option to take in the coming months.

The Lansdowne Road option would entail turning the pitch around by 90 degrees and building the stadium on land owned by Lansdowne Rugby Football Club.

The more ambitious Abbotstown option would be certain to contain tax incentives for investors to put new infrastructure in place, but there is little appetite for such measures in Government at present.

Finance Minister Charlie McCreevy said in December’s Budget that he did not favour property-based tax incentive scheme due to the demand for property and the desire to improve equity in the tax system.

Instead, the Government has introduced tax breaks aimed at encouraging the private sector donors to pour money into the construction of a new national stadium.

Under the measures, the tax-free status of charitable donations of up to €40m has been extended to major sports projects.

Only sporting bodies approved by the Government, such as the FAI and IRFU, will be able to receive the tax-free donations.

The measure is aimed at encouraging donations from corporations and individuals such as JP McManus, who offered to contribute millions to the construction of the so-called ‘Bertie Bowl’ in Abbotstown