Lack of funds take gloss off redevelopment

THIS morning, as leading GAA officials gather in Croke Park for the official opening of the redeveloped Canal End and Hogan Stands, they won’t need reminding the financial outlook is not quite so rosy — with current borrowings in the order of €70 million and no indication when the last phase can be tackled or how it can be paid for.

After the Government abandoned plans for the building of the National Stadium last September, they announced the balance of the grant committed to the association

€38m approx would not be paid over. Instead, a fresh application would have to be made.

Prior to the start of the 2001 Congress in Dublin, Sean McCague promised that Croke Park would never be a financial burden on the association. That assurance was given largely on the strength of a capital injection of Ir£60m (€76m) from the Government, to be paid over the following three years. A quarter of it was allocated for remedial work to be carried out on the Northern (Hill 16). The aim was to have it ready for the opening ceremony for the Special Olympics this June.

Additional funds were promised for other grounds as well as games development, but these were also frozen.

The formalities today will be carried out by McCague in one of his last duties before he hands over the presidency to Sean Kelly the weekend after next and Taoiseach Bertie Ahern.

The GAA leadership hasn't been given any hint that Mr Ahern might use the occasion to announce payment of some part of the grant, or even that it may be in the pipeline.

More interestingly perhaps, they don't expect such an announcement. In an interview last December, Director-General Liam Mulvihill pointed out that future planning was being carried out on the basis that they wouldn't be receiving it.

"We have not been told we aren't going to get the money. We have been told we are not getting the money as of now.

"We recognise the Government is in a difficult financial situation. We are not trying to embarrass them in any way. We are very appreciative of the money we have got in the past and we recognise the difficulties they have. But we hope there will be money there in the future and that we will be treated as fairly as we were in the past. We can't ask for any more than that," he stated.

These sentiments were echoed by McCague at a recent press briefing when he said: "We entered into an agreement in good faith and so did the Government. But circumstances have changed and we have to accept that."

The only good news in the interim period was the successful outcome of the Bord Pleanála appeal which allows the association to retain Hill 16 end as a standing area.

The plan is to extend the existing terrace incorporating the area formerly occupied by the Nally Stand over to the end of the Hogan Stand. The two sections will be divided. Apart from meeting the obvious need to provide a percentage of tickets at a lower price to stand tickets, the other benefit will be to enhance the capacity to 79,500.

This, incidentally, was the figure projected when the grandios plans for the redevelopment of the stadium were revealed early in February 1992.

The belief then was it would cost Ir£100m and would take 15 years to complete.

Under the dynamic leadership of Mulvihill and the support and guidance of the serving presidents, starting with Paddy Buggy, the work was completed ahead of schedule. Prudent financial management, hugely boosted by the support of the corporate sector through long-term suite and premium level seats, meant the association only had to resort to borrowing to complete the Hogan Stand side.

The Ir£35m cost of the Cusack Stand was met from its own resources. Significantly, it was only possible to tackle Phase Two (the Canal End) and Phase Three (Hogan side) almost simultaneously, because back in 1998 Dublin Corporation gave permission to commence the work before tackling the Northern end. The original planning permission stipulated the Hill end would have to be redeveloped following the construction of the new Cusack Stand.

Based on current building prices, it's estimated it would cost up to €25m to develop the Northern end. Officials stress it's only an estimate, that the figure could rise once it's put out to tender and that costs would rise in the event of the project being deferred for a year or two.

The intention is to hold the level of current borrowings at a maximum of €70m, with Mulvihill stating in his annual report that even this level of indebtedness will stretch them to the limit for some time. He also points out the association would not have committed itself to such expenditure if they suspected the promised funding would not materialise.

In real terms, borrowing a further €25m to finish the redevelopment is not an option at the present time unless of course, the Government comes up with the rest of the grant. However, that appears highly unlikely.