THE Welsh Rugby Union have taken over the running of the Welsh Schools (senior group) and Dragons Trust, as well as the Welsh Youth previously announced.

WRU chairman David Pickering explained it had been done to give the governing body greater control over its lite players and to save costs by making them more accountable.

"The WRU last year alone spent £2,526,932 on nurturing the grass roots of the game, no less than £1,456,120 of that given to youth, schools and the Dragons Trust.

"The duplication of costs for things such as administration, travelling expenses, handbooks, caps, ties and audit fees means there are huge opportunities to rationalise spending, save money and deliver a better service to the young players," said Pickering.

"While recognising that those three bodies have carried out great work down the years, we feel the time has come to give the Union's professional staff the chance to have more direct influence on how the game in Wales is developed, grown and funded.

"The WRU will now take complete control of delivering the programme of international fixtures at under-18 level. The first step that has been taken is to merge the former Welsh Youth under- 18 and Welsh Schools under-18 teams into one side.

"By coming together to form one team the Union hopes to improve playing standards at the lite end of the game.

"In the business environment in which the WRU now operates we cannot provide funding to any organisation which refuses to accept an undertaking to be accountable to the WRU for the management of those funds."

The WRU have recruited Peter Owens, their former administration and ticket office manager, to co-ordinate youth club rugby while management and a coaching team for the new Wales under-18s will be appointed soon.

Pickering revealed at yesterday's annual meeting how the WRU had stood firm to turn a heavy loss into a small profit.

And he revealed that to mark the Union's 125th anniversary they hope to play all three major Southern Hemisphere nations next November.

"We are no longer afraid to take tough decisions, we cannot build the future on sand. We now have a more secure future, and at long last everything fits in Welsh rugby and everyone is owing towards the same goal.

"The task now is to back rather than buck the new system. We have provided the right framework, and the bankers say the strides we have made are immense."

WRU chief executive David Mofffett explained: "The critical issue is to develop and implement a strategic plan, which is terribly important because we need stability, and to know where we agree going in the next five to ten years.

"We have to do what it takes to restore Welsh rugby in the world, on and off the field, where the world wants it to be.

"I was desperately hoping to announce that we finally secured the debt repayments to the banks, BT and the Millennium Commission, but time and the complexity made it impossible, though I hope to announce in the near future that we have got stability in our finances.

"We're going to insist on incredible discipline and we are not going to be deflected from running things properly. We're looking at a better future."

Sir Tasker Watkins handed over to Keith Rolands after his 11th AGM as WRU president.

"I have felt deeply privileged to preside over the affairs of our Union for the last 11 years and I put it aside with some regret, for this is a proud office," he said.

"We are at the beginning of a new era in Welsh rugby with new management and a board of directors with a heavy responsibility. I wish Mike Ruddock and the players at his diposal every success for the future. They are bringing Welsh rugby back to the forefront of world rugby.

"I'm not going away, but I want to thank you all for the many courtesies and kindnesses you have shown me." He received a standing ovation.