Bruising climbdown by Ahern over financing stadium

The announcement that the Government is to seek private funding for the planned sports stadium effectively leaves the project…

The announcement that the Government is to seek private funding for the planned sports stadium effectively leaves the project dead in the water, writes Miriam Donohoe.

The announcement that not a penny of public money would be spent on the controversial "Bertie Bowl" project represents a bruising climbdown by the Taoiseach, Mr Ahern, who held the multi-million euro development so close to his heart.

After a long and tense Cabinet meeting yesterday, the Government announced it would seek private sector funding for the proposed National Stadium at Abbottstown, Co Dublin, and would ask the GAA to open Croke Park on a once off basis for the 2008 European Championship finals.

The announcement marked the beginning of the end of the Taoiseach's long-held dream to leave the people of Ireland with a massive legacy from his leadership. And the climbdown was seen as a major victory for the Tánaiste, who had vigorously opposed the development. There were few in Leinster House last night who believed there would be enough private sector interest in investing millions in a National Stadium in Abbottstown to ensure that the project go ahead. "It is dead in the water. This is the end of it as far as I can see," one Fianna Fáil backbencher said. "This is a bad day for Bertie."

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A senior Government source said there had been tough talking done yesterday. "It has been the Tánaiste's day. On this occasion, she has won."

Spokeswomen for the Taoiseach and the Tánaiste insisted that the decision was a reasonable compromise.

But for Mr Ahern, a man who hardly put a foot wrong over the past five years as the sun shone on the Irish economy, it was a particularly painful one. Only months ago he was on top of the world after the general election, with a united party and Government. There were no factions to speak of in Fianna Fáil. His partners in Government were happy and the Opposition was in tatters. But within weeks, the picture started to change. It became clear that public spending was running out of control and job losses were being announced almost on a daily basis. The Government announced it had to pare back €300 million from the public purse in order to achieve a budget surplus. Increased health charges, a freeze on employment in the health sector, a reduction in overseas aid and an increase in third level university registration fees was the tonic issued to an angry public.

Despite this gloomy economic backdrop, the Taoiseach insisted that the Bertie Bowl would go ahead. As recently as Monday he said he was still committed to the development. During the election campaign Mr Ahern dropped his commitment to build the full Campus and Stadium Ireland project at Abbottstown, and pledged only to build a national stadium posted at €400 million.

He said he would consider reducing the size of the stadium from 80,000 seats.

In their general election manifesto the PD's stated their preferred option was to open up Croke Park and to develop Lansdowne Road.

They had still not reached any compromise on the issue when they were drawing up the Programme for Government, which simply states that both parties were committed to the development of a world class stadium.

It did not specify when, where or how much it would cost. With UEFA due to visit Dublin next Monday on an assessment visit for Ireland's joint bid with the Scottish FA for the 2008 European Championship, and the public spending cuts, Mr Ahern's hand was being forced on the issue.

The five man committee set up by the Government in July to look at all the options for the stadium circulated its report last Friday and yesterday's meeting of Cabinet was seen as D-Day as far as the stadium was concerned.

Mr Ahern started to float the idea of private sector involvement last weekend.

One option he looked at was using the new National Development Finance Agency to raise money for the project. But the Tánaiste held firm and after some straight talking at a one- and-a-half hour meeting yesterday the so called reasonable compromise was hatched.