THE leading European rugby unions are to join forces to avoid being

left behind by Rupert Murdoch's $550m broadcasting deal with the major

Southern Hemisphere countries.

Vernon Pugh, immediate past chairman of the International Rugby Board

and current chairman of the Welsh Rugby Union, said a stronger Five

Nations committee would come into force later this year.

The existing four Home Unions committee, comprising England, Scotland,

Wales and Ireland, will disappear in September with Italy invited to

play a bigger role which could eventually lead to a place in the current

Five Nations' Championship.

''The idea is to end the committee of Home Unions as a separate

entity, to drive forward the Five Nations organisation and actively pull

in Italy,'' said Pugh.

Pugh, who is chairing an IRB working party on the future of amateurism

that will be discussed in Paris in August, said the deal had done the

European game an ''enormous favour.''

Murdoch's News Corporation will broker an annual Test competition

involving New Zealand, South Africa and Australia that many see as the

final nail in the amateur coffin.

The 10-year agreement will also incorporate an inter-provincial

competition involving teams from the three countries, as well as

incoming tours from northern hemisphere nations and the British Lions.

Scotland will be one of the first visiting sides to campaign in the

Southern Hemisphere under the terms of the Murdoch agreement. The Scots

are due to tour New Zealand next summer.

It is unlikely that the Scots would benefit from a deal struck with a

broadcaster by a host union, but it will be a matter of no little

interest to see how Murdoch's exclusive right to televise the games will

translate into viewing arrangements back in Scotland and the UK.

''I think the southern hemisphere have done us an enormous favour,''

said Pugh. ''They have raised the stakes. I believe it sets the market

for the value of the game in the Northern Hemisphere.

''In truth, they're being paid a significant amount of money for a

part of the world in which the viewing population is relatively small.''

The deal works out at around #36m a year -- compared to the #32m BBC

and Sky paid last year to screen the Five Nations and English club games

until 1997.

It also raises the prospect of Murdoch increasing the stakes when the

Five Nations' Championship deal is up for renewal, with the possibility

of another major occasion heading for satellite subscribers only.

Incoming Rugby Football Union secretary Tony Hallett said: ''This is

the biggest deal in history and a huge challenge for us to come up with

something. The three Southern Hemisphere nations have devised new

competitions. We have nothing new.

''The Five Nations remains the jewel in our crown and we will have to

see how we can make our domestic programme more attractive.

''This deal will certainly affect the future of TV bids in the north,

where we look threatened by three strong unions.''

The deal, announced on the eve of the World Cup final between New

Zealand and South Africa, has been described as smashing the last

vestiges of amateurism in the game. But Pugh added there were still

concerns among the 67 member unions at the increasing march of

professionalism.

''They believe if it becomes pay for play, it may be impossible for

unions and the International Board to retain control,'' said Pugh.

''Three out of the four believe it is important to retain some type of

ethos in the game and thirdly they want to retain some equality among

the players, so that the market value of a forward compares to a

half-back or another star.

''It's only New Zealand who have been pressing for a position where

players are paid to play. The others favour, and New Zealand are happy

to accept, a position where they continue to operate throught their

developing trust funds.''

Scottish Rugby Union chief executive Bill Hogg said: ''Our position,

which is the one we will be putting forward when the IB meets in August,

is that we want the game to remain amateur but with a relaxation on what

the players can receive for off-field activities.

''Perhaps, also, we might reach a situation where players receive full

re-imbursement for money lost through playing the game. Nobody wants to

see players suffer financially because they are playing the game.

''In Scotland most of our international players already have good jobs

and they would not be able to become fully professional players because

of their careers.''

But Irish RFU president Ken Reid warned that the deal pushed the sport

further down the road to professionalism. ''When we were in South Africa

these past few weeks, it was clear that payment was being made to

certain players and it is hardly a coincidence that this deal was

announced the day before the World Cup final,'' said Reid.

Hallett added: ''This sort of deal will drive a hole through

amateurism. We must redefine the boundaries of professionalism. This

sort of money and the concentration of playing will prevent a player

sustaining a job and I think he will need support from these amounts of

money.''