The Cabinet has formally sanctioned Ireland's bid for the 2023 Rugby World Cup, agreeing to underwrite the costs of the tournament as well as the £120 million (€139 million) fee to the tournament owners.
Part of that fee will be underwritten by the Northern Ireland Executive if and when it is re-established.
The Government has secured a written promise from all five party leaders in the North to pay a share of the tournament costs, as the event will be held in the North as well as in the Republic.
The Government will also fund the upgrade for many of the stadiums, a spokesman for Minister for Sport Shane Ross said. He was unable to supply costs for this programme due to "commercial confidentiality" he said, but previous estimates have put the figure at €200 million.
Mr Ross’s spokesman said the Government would have the stadiums after the event, but conceded that they are in fact owned by sporting organisations.
He said it was an investment that would be part of the Government’s capital plans, but it would not go ahead unless the bid was successful.
He added that it was a condition for the bid that the entire cost of the event would be underwritten by the Government, but he stressed that the tournament had always made significant profits in the past.
Insurance
Although Mr Ross’s department would not supply any details on the costs, a parliamentary response by the Minister last December shows the Government may have to take out insurance to cover “unforeseen events” – such as a terror attack – which could disrupt the tournament and leave the exchequer facing a significant bill.
“As part of the bid, both Governments will have to guarantee the payment of the tournament fee of £120 million,” Mr Ross told the Dáil.
The IRFU anticipates 475,000 visitors would come to Ireland during the tournament and the economic benefit is estimated at €800 million.
The bid, which must be submitted by June 1st, will be evaluated over the coming months and a decision announced in the autumn. France and South Africa are also bidding for the tournament.
