Union rules out cup splurge

The New Zealand Rugby Union has ruled out spending all its reserves to ensure Eden Park meets World Cup criteria.

Chairman Jock Hobbs told yesterday's union annual meeting in Wellington it would be foolish to plunge all the union's reserves into increasing seating capacity to 70,000 to meet the IRB's stadium requirements for holding semifinals and finals and meeting ticketing requirements.

"Putting all the reserves built up over many, many years into one event would not be prudent."

The union yesterday revealed a record net surplus of $20.5 million for the year ending December 2004 - more than $9 million up on the previous year. Year-end reserves increased to $57.7 million, well up on the 2003 total of $37.2 million.

Hobbs confirmed the level of reserves was comforting in considering a bid for the 2011 World Cup, but could not say whether the money would be used for it.

"It's helpful for a lot of reasons to have cash reserves, but they are tied up with the review on provincial union funding which is to take place this year."

A bid has to be lodged with the IRB by May 13 and Hobbs said the NZRFU board would meet today to update its position.

A joint venture between the union and the Government was established earlier this month to assess New Zealand's ability to host the World Cup.

Hobbs would not confirm when a final decision on a bid would be made. However, he admitted it could be New Zealand's last chance to host the World Cup after the union fumbled the chance to co-host the 2003 tournament with Australia.

"Our feeling is that it's going to become increasingly more difficult. Their scale and demands of the IRB are increasing all the time.

"You couldn't say for certain this is the last opportunity, but I think the feeling is that as time marches on, it's going to get more difficult."

Hobbs dismissed claims that New Zealand could not compete with the Japanese union in terms of stadium size and financial backing in bidding for the World Cup.

"Japan may be favoured by some, especially in the media, [but] as far as I'm aware we're all on the same starting line."

1995 World Cup hosts South Africa have also expressed interest in holding the event.

In other developments from yesterday's meeting, NZRFU vice-president John Graham was elected to replace outgoing president Tane Norton. Andy Leslie succeeds Graham as vice-president.

One of Graham's first jobs could be placating the disgruntled unions who miss out on a coveted position in next year's NPC premier competition.

Fourteen unions have applied for the professional premier competition starting next year, which could consist of up to 12 teams, with a modified amateur 15-team first division created.

The unions likely to miss out will probably be drawn from Counties-Manukau, Manawatu, Hawkes Bay, and an amalgamated bid from Nelson-Marlborough.

First division sides, Northland and Southland, could also be feeling the heat ahead of the announcement which was originally due on May 27, but union chief executive Chris Moller said yesterday a decision was due next month.

"There will be some disappointment for those who miss out, but I think the whole process has been cathartic.

"We have seen teams drop out of NPC division one and teams still play rugby in those areas."

Former trade unionist Ken Douglas was appointed an independent director to the board, replacing Gavin Walker.

- NZPA