AUSTRALIA HAVE withdrawn their bid for the 2015 World Cup and may not bid for 2019 because of an “exorbitant” guarantee fee charged by the International Rugby Board, the country’s rugby union chief said.

Australian Rugby Union (ARU) chief executive John O’Neill said it would be a struggle to find a bank willing to guarantee the €108 million hosting fee amid the global credit crunch and 10 years in advance of the 2019 World Cup.

“We won’t bid for 2015 . . . We’re working on a bid for 2019, but I’ve got to say the numbers are horrendously difficult to justify with that level of tournament fee,” said O’Neill.

“As a board, because we’re a public company, our directors are saying ‘well that’s a contingent liability we would have to carry on our balance sheet and a bank isn’t going to guarantee it’.”

O’Neill said he was sure the IRB was aware the world economic recession was affecting rugby but that made it “even harder to get your head around a €108 tournament guarantee 10 years out”.

Australia, along with England, Ireland, Italy, Japan, Scotland, South Africa and Wales, confirmed their intention to bid for the 2015 World Cup last year.

England have since signalled their bid could be in jeopardy because of the difficulty of making the up-front payment amid the global financial crisis although the British government came out in support of the bid in February. Japanese officials have said the crisis would not affect their bid.

The IRB will make their decision on the host nation for the 2015 and 2019 tournaments on July 28th.

Meanwhile, O’Neill is confident the Wallabies can clean sweep the home nations after announcing they are close to agreeing the return of the “grand slam” tour following a 25-year absence.

O’Neill is hopeful England will agree to play Australia at Twickenham on November 7th following Tests against Wales, Ireland and Scotland – reviving memories of the famous 1984 tour in which Australia won all four Tests under Alan Jones.

O’Neill believes the Wallabies can repeat history a quarter of a century later. “There’s no reason why not,” he said. “I really think the way this team is developing off the back of last year, that a clean sweep will be on the cards.

“It won’t be easy but with the talent that is coming through – Robbie’s (coach Robbie Deans) been on deck now for a full year – so I think a grand slam repeat 25 years on would be a very, very significant achievement.”

The ARU boss also announced the “ink was almost dry” on an agreement to play a fourth Bledisloe Cup match in Tokyo on October 31st. It follows the success of the Australia-New Zealand encounter in Hong Kong last year.

“Negotiations have proceeded well with the Japanese Rugby Union,” O’Neill reported. “Taking the Bledisloe Cup to Japan will be another first for the game. It’s another clear message about how serious we are about Asia.”