The decision follows a season where many of the 11-man squad failed to reach targets at international championships just two years before the Olympic regatta.
Sailing team manager James O'Callaghan has announced a new Olympic squad of five sailors (49er) Russell McGovern and Matt McGovern and (Radial) Ciara Peelo and Debbie Hanna and (Finn) Tim Goodbody, none of whom have Olympic Games experience.
The highlight of the season, with a full world class fleet at this year's test event in China, was how Ciara Peelo of Malahide turned a difficult season on its head by finishing eighth overall in the Pre-Olympic event.
Six squad members have been cut and O'Callaghan says that the only way back on to the squad is by an "improvement in performance".
Maurice O'Callaghan and Ed Peel failed to meet targets set this season in the Star keelboat.
The target is set by Irish Sports Council (ISC) carding criteria.
In some ways O'Connell and Peel are victims of their own success.
In their first year together in 2005 they scored sixth in the Star class World rankings and gained world class carding from the Sports Council but in 2006 funding methods changed and focused more on performance at major events rather than rankings.
Funding was determined by results in the Star European Championships in Germany in August and the World Championships in San Francisco earlier this month.
But the lack of success a these major regattas means the duo have now parted company and O'Connell is looking for a new crew to continue his campaign.
"I'll find a way around it. The loss of funding is a big blow but my sights are firmly set on representing Ireland competitively in 2008". O'Connell said yesterday.
If the lack of a crew and funding was not enough of a problem for O'Connell he also now faces the prospect of competition for selection from 2004 trialists Max Treacy and Anthony Shanks, also of the Royal St. George YC, who have declared for Beijing.
Athens Olympian Gerbil Owens, campaigning a 470 with Sam Hunt for Beijing, is also out of the squad. Owens has split from Hunt and is now teamed up with his former crew Phil Lawton in a two year campaign for selection.
Dun Laoghaire single-handers Aaron O'Grady in the Finn class and Roger Craig in the Laser are also dropped.
Despite the cut-backs the sailors will continue to be funded until December 31st and O'Callaghan himself is optimistic that some of the crews could make it back on to the squad with better performances within six months if the campaigns can continue unfunded.
Ireland has not qualified in any of the classes to date and three quarters of the nation qualification places are up for grabs at the 2007 World Championships in Cascais, Portugal.
There is also some irony in the fact that this windy Portuguese venue is a qualifying event for what is ultimately going to be a light air Olympic regatta in which Ireland's only stated aim is a top eight finishing position and no medals are expected.
Olympic Squad
49er Russell McGovern Matt McGovern
Radial Ciara Peelo
Radial Debbie Hanna
Finn Tim Goodbody
ENDS
