We look forward to 2002 with confidence and the opportunity to make major investments in our residential centres and to rebuild the team of staff across all aspect of our activities

Jim O'Rourke

The movement's lucrative annual eisteddfod - claimed to be the biggest youth festival in Europe - which was due to be held in Cardiff in May was an early casualty of the foot-and-mouth outbreak which gripped large areas of Wales.

A total of 18 staff also lost their jobs as the Urdd struggled with financial difficulties.

The Welsh Assembly gave the organisation - the backer of Welsh-language cultural activies for young people in Wales - a �150,000 lifeline to help them through the crisis.

Now, however, the situation has improved and the Urdd is to invest in new sport facilities and accomodation at its centres in north and west Wales.

A further �4m will be spent at the organsiation's new centre in Cardiff - part of the Wales Millennium Centre in the bay.

The organisation said it was ending 2001 on a positive financial note after having sold its Aberystwyth central offices and made savings on running costs.

It also had secured substantial unforeseen income from additional grant aid and legacies.

A major investment is planned for the Wales Millennium Centre

"We look forward to 2002 with confidence and the opportunity to make major investments in our residential centres and to rebuild the team of staff across all aspect of our activities," said chief executive Jim O'Rourke.

"The losses associated with foot-and-mouth are now well behind us," he said, adding his thanks to everyone who had offered their backing and financial help.

By 2004 the Urdd hopes to be running residential facilities for more than 50,000 youngsters a year in three residential centres at Llangrannog in west Wales, Glan-llyn near Bala and Cardiff Bay.

The �4m redevelopment will begining at Llangranog next spring, providing a new sports hall, accommodation and a heritage centre in the farm buildings there.

A �750,000 welcome centre is to be built at Glan-llyn by spring 2003. The facility will include a lecture theatre, offices, meeting rooms and accommodation for 28 people.

And in Cardiff Bay, the organisation is part of the partnership working on the construction of the Wales Millennium Centre.

This will include a residential centre for 150 young people as well as classrooms, a theatre, lounges and dining facilities.

It is hoped that confirmation of a start date for this building will be clear early in the New Year.