The construction of a stadium in Port Elizabeth for the 2010 Soccer World Cup has received a boost with the announcement that national government will contribute to financing requirements.

Port Elizabeth is in line to host pool games and possibly a quarter-final.

The Medium-Term Budget Policy Statement tabled yesterday states that South Africa’s successful bid to hold the tournament “will require provision for government’s role in preparing for the competition, which holds large potential benefits for the country. Government will contribute to funding part of the stadium infrastructure requirements.”

Finance Minister Trevor Manuel has also allocated R1,6-million in his adjustments budget to sport and recreation for the appointment of a project management unit “to handle matters related to the hosting of the Fifa World Cup and other major international events”.

Manuel also announced yesterday that proposals would be brought to Parliament next year to deal with tax matters relating to the hosting of the Soccer World Cup.

Expanding on this, the policy statement says that clarification is required with regard to the “tax treatment” of the operations and activities of Fifa and other parties involved in hosting the event. Legislative amendments might be required for this.