SAINTS chairman Eamonn McManus is confident a major housebuilder which has been plunged into financial difficulties will fulfill a deal which will generate £8-million for the rugby league club’s proposed new stadium.

Taylor Wimpey has a contract with Saints to buy the club’s current Knowsley Road ground for housing, providing plans to build the £25m new stadium are given the go-ahead by the government.

But news of the housebuilder’s financial difficulties amid a slowdown in the UK construction industry raised questions about whether the deal to buy Knowsley Road could be thrown into doubt.

However, McManus told the Star this week: “The club is still confident that Taylor Wimpey will be making its stated contribution of £8-million which will go towards funding the new stadium.”

The stockmarket value of Taylor Wimpey plunged by nearly 50 per cent last week amid City warnings that its future was in doubt. The company also admitted it had failed to tie up a £500m rescue package and risked breaching its banking covenants next year.

However, in a trading statement Taylor Wimpey’s board also said it “remains convinced of the fundamental attractions of the business over the medium and long term” and it will continue to evaluate options for investment.

A spokesperson for the housebuilder also expressed confidence the deal with Saints is secure, saying: “We are pleased to be working as one of St Helens rugby league club’s partners to develop the site for housing in the near future once the new stadium is operational.

“We hope that all the schemes receive final approval in due course to allow the whole project to take an important step forward.”

Meanwhile, the Government Office for the North West is still assessing whether to give approval to three interlinked planning applications that are crucial to Saints’ dream to build a new home at the former United Glass site at Peasley Cross.

A 21-day target to decide whether the plans should be the subject of a public inquiry ends on Friday, however, that time period can be extended and sources have suggested it could be the end of July before a verdict is known.