THE salvage operation for the 1998 World Equestrian Games, initiated by Nissan's injection of £2 million in sponsorship last Friday, cleared the final hurdle yesterday when the Government agreed to resume funding the operation.
The funding had been withdrawn in April but, following further discussion at Cabinet yesterday, operational costs of £500,000 have been agreed, split equally over the next two years in the build up to the Games.
The reversal of the Government's stance comes as a result of both the Nissan sponsorship and news on Tuesday that the International Equestrian Federation (EEI) had agreed to cut the £1.5 million performance bond in half.
Bord Failte had paid the bond to the EEI in 1994, when the right to host the Games was first granted to Ireland. But, following a meeting in Dublin on Tuesday between Bord Failte representatives and the EEI secretary general, Dr Bo Helander, and treasurer, Conor Crowley, the bond has been reduced to £750,000.
The Government had demanded a renegotiation of the performance bond last Thursday night, less than 24 hours before the deal with Nissan was rubber stamped. The share of £3 million profit that will fall due if the 1998 Games are a financial success has not been renegotiated, however. The Department of Tourism and Trade says this is not a Government problem, but is solely between the EEI and the Games organising company, World Equestrian Games (WEG) Ireland Ltd.
The company is now geared up to approach other sponsors to. come on board, and will also resume negotiations with the RDS and Punchestown, venues for the six discipline Games.
Details of the new streamlined budget for the project are still not available however, although in a bid to save costs the WEG Ireland offices are to be moved from the Bracetown Business Park in Clonee to Ashton House, home of the Irish Equestrian Federation (EFI).
WEG Ireland, which received £250,000 from Bord Failte in 1994 and 1995, still has outstanding debts of over £200,000.
The EEI secretary general, Michael Stone, is confident of the project's success, however following what he terms "rigorous examination" by both Nissan and the Government.
