THE Scottish Rugby Union is considering plans for housing and a sports centre on land adjacent to Murrayfield in a bid to clear part of its GBP21m debts.

A Scottish Executive report decided recently that the SRU can protect land to the west of the stadium rather than having to leave it open as a flood plain for the nearby Water of Leith.

The SRU has still to negotiate with Edinburgh City Council on how to proceed with the protective work while separate plans for a light railway - which could run through land at Murrayfield - may also cost the union a large piece of land.

However, it is still expected that, with land valued between GBP2m-GBP4m per acre in that part of the city, more than four acres could be developed while preserving substantial rugby facilities behind the stadium.

It has been reported Miller Developments are discussing a deal with the owners of the neighbouring ice rink, which would involve them building housing and a leisure complex on adjacent land. Gordon McKie, the SRU chief executive, yesterday indicated that their thinking was in line with that.

He said: "We could be looking at residential developments subject to planning permission but we also have other issues vis-a-vis the planned tram route that would encroach on our land down by the railway."

Similar plans were mooted in the late 1990s, when there were accusations that, by doing so, the SRU would be selling off the sport's crown jewels. Since then, though, the state of the union's finances has placed such planning in a different light with most accepting the need for solutions to soaring debts.

A leisure-based development would be more warmly received by rugby clubs, but that must be set against the greater value attached to selling it for housing.

"We are looking at two sets of proposals, " said McKie. "One is up market housing, the other involves sports with the creation of an indoor centre. which could have development potential for the sale of the land."

McKie also said that the SRU are considering re-housing the Edinburgh Gunners while plans to move Glasgow Warriors to Scotstoun are still on the table.