League, union suffer after government reneges on funds

parragirl · League, union suffer after government reneges on funds

February 07, 2008 12:00am

AUSTRALIA's rugby union and league officials were furious last night after Kevin Rudd's razor gang stripped $35 million in funding.

Rugby league lost $10 million which had been set aside for its centenary celebrations - already underway - while union will go without the $25 million allocated to set up an academy at Ballymore.

Kevin Rudd's Government regarded them as "last minute" promises by the outgoing Howard administration and has included the programs in cuts intended to save $642 million over four years.

But NRL chief executive David Gallop said: "It is particularly disappointing given that the grant was announced by the then prime minister on grand final day before the election was called. It wasn't an election promise but a commitment by the government of the day."

The decision has cost the already cash-strapped ARU $500,000, which they spent on the academy project after former prime minister John Howard announced the capital contribution on June 30 last year.

"We're absorbing the shock of this decision. The disappointment is profound," ARU chief executive and managing director John O'Neill said last night.

League was to spend the funding on halls of fame in Sydney and Brisbane plus education programs and volunteer recognition.

O'Neill said that, together with the QRU, the ARU had been working towards finalising a funding agreement on the basis it was government-guaranteed and was essentially "money in the bank".

"We engaged architects, undertook feasibility studies and opened discussions with proposed tenants," he said. "There was no contemplation of risk given we were dealing with our federal government."

ARL chief executive Geoff Carr said the opposition had raised no objection to the funding when it was first announced.

O'Neill said at the time of the announcement the project had the support of the Queensland Labor Government, which had committed to ensuring security of tenure on the home of rugby at Ballymore.

The Ballymore facility was to have included a gym, covered training area, 50m pool, accommodation, a rugby hall of fame, conference centre and sports medicine facilities.

http://www.news.com.au/dailyteleg.../0,22049,23171620-5006066,00.html