State aid: EC approves £110m aid for three sports stadiums in Belfast, Northern Ireland
10 Apr 2014 04:42 PM
The European Commission has concluded that
Northern Irish plans to grant £110 million (around € 133
million) for the reconstruction of three sports stadiums in Belfast is
consistent with EU State aid rules. The Commission found that the proposed
funding contributes to urban regeneration and social cohesion, in line with EU
objectives, without unduly distorting competition in the Single
Market.
The
Commission's Vice President in charge of competition policy, Joaquín
Almunia, said that: "The reconstruction of the three
stadiums will contribute to the regeneration of disadvantaged urban communities
in Belfast. It will furthermore promote social cohesion across religious
divides and encourage communities to come together through the most popular
sports of the region.''
In
2013 the UK authorities notified plans to rebuild three old sports
stadiums in Belfast with a view to providing modern, state-of-the-art venues
for the three main sports of the region, namely football, gaelic games and
rugby. The aid will be granted through the regional budget of the Northern
Ireland Executive. The total amount of the public funding is £110
million, shared between three beneficiaries: the Irish Football
Association for the soccer Windsor Park Stadium (£31
million / €37.4 million), the Ulster Council Gaelic Athletic
Association for the gaelic games Casement Park Stadium (£62.5
million / €75.4 million) and the Ulster Branch of the Irish
Rugby Football Union for the rugby Ravenhill Stadium (£16.5
million / €19.9 million). Any surplus money will be
invested in grassroot and community projects by the aid
beneficiaries.
The
Commission assessed the measure under Article 107 of the Treaty on the
Functioning of the European Union (TFEU), which allows state aid to facilitate
the development of certain economic activities or areas. The Commission found
that reconstruction of all three venues met public interest policy objectives
as they will be accessible to the general public (e.g. to schools, community
sport, programmes for people with disabilities, programmes tackling poverty
etc.). Moreover, the aid is well-targeted as it addresses a specific problem of
under-investment in local sports infrastructure. Finally, the Commission
concluded that the professional activities at the sports venues are of a local
character and the aid therefore will not affect trade in the Single Market to
an extent contrary to the common interest.
Background
These three stadium projects are part of an
overarching programme to promote urban regeneration, neighbourhood
renewal, social cohesion, inclusion and equality in Belfast, particularly
in light of the recent peace process. The funding is intended to underpin and
support the peace dividend. The three sports involved, football, gaelic games
and rugby, cut across political, social and religious divides and are the
principal sports played and supported in Northern Ireland.
The
project is also intended to raise participation levels in sport and physical
recreation generally in Northern Ireland, to improve the health of the
population and to increase Northern Ireland’s sporting profile through
better playing and training facilities.
Moreover, the plan will improve local
infrastructure development and upgrade the three
stadiums tomodern health and safety requirements, which will also
improve disabled access to the venues. This will create modern and
fit-for-purpose disabled facilities to provide truly inclusive sporting
locations, which can be used by all regardless of
abilities.
The
non-confidential version of the decision will be made available under the case
number SA.37342 in theState Aid Register on the competition website once any confidentiality issues have been
resolved. New publications of state aid decisions on the internet and in the
Official Journal are listed in the State Aid Weekly e-News.