Novel SSIA plan to build stadium

FINANCIAL services group Friends First say there are no obstacles to implementing a novel scheme to raise €500 million to build a national stadium using Special Saving Investment Scheme (SSIA) funds.

Friends First general manager, group planning and marketing, John Cunningham, said the policy proposal from financial and management consultant Eddie Hobbs to fund a national stadium from SSIA funds was a very workable proposition.

"It is a viable proposition, the industry can do it from a logistical point of view; it is not a pie in the sky proposition, far from it. It's a fantastic proposal that could be applied in other areas also," he added. Already, Finance Minister Charlie McCreevy and Arts, Sport and Tourism Minister John O'Donoghue have agreed to study Mr Hobb's proposal.

Mr Cunningham said Mr Hobbs' suggested solution to the financing of a new national stadium was: "deliverable, transparent and a way to give ordinary punters direct access to the public private partnership initiatives."

Mr Hobbs' game plan requires the support of just 4% of the 1.2 million holders of SSIA accounts. His suggestion includes the prospect of giving investors in the sports stadium fund special access to tickets for major sporting events.

Mr Cunningham said the details of providing tickets to big sporting occasions to investors would have to be worked out with the proposed users of the stadium the Irish Rugby Football Union and the Football Association of Ireland. "While linking the holders of SSIA stadium accounts to tickets is a logistical nightmare, it is something that is doable," Mr Cunningham said.

The broad outline of the scheme proposed by Mr Hobbs envisages SSIA investments being used to fund the construction of a new stadium in a government guaranteed scheme which would be paid back by the State over a specific time period. Mr Cunningham believes that if the scheme is successful in providing the finance for a national stadium, the idea could be developed to provide other facilities.

"If the State got into the business of building nursing homes, then ordinary people could invest their money with a eye on using the facilities themselves when they become older," Mr Cunningham suggested. He believes it will be easier to transfer future rather that existing SSIA investments into a new fund to finance the development of the national stadium. Mr Hobbs said he has been in contact with the finance directors with a number of banks and building societies who say they are available to talk with Mr McCreevy.