Gerry Adams (Louth, Sinn Fein)
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To ask the Minister for Agriculture, Food and the Marine if the horse and greyhound fund continues to receive a subvention from the Exchequer; and the amount of that subvention in 2009, 2010, 2011 and to date in 2012. [48600/12]

Simon Coveney (Cork South Central, Fine Gael)
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The horse racing and greyhound racing industry are important indigenous Irish industries making an important contribution to the economic and social fabric of our country. It has been estimated these industries together support in excess of 27,300 jobs and contribute approximately €1.4 billion in economic output annually. A recent study on the Horse Racing Industry commissioned by my Department and undertaken by Indecon Economic Consultants, “A review of certain aspects of the Irish Horse Racing Industry”, considered inter alia the funding and management of the industry in Ireland. The report confirms the importance and potential of the Irish Horse Racing Industry and affirms that with appropriate policies and structures in place the sector can contribute significantly to the economic and social development of the country and to the expansion of employment.

The Horse and Greyhound Racing Fund (the Fund) was established under section 12(1) of the Horse and Greyhound Racing Act 2001 (the Act) for the purpose of giving support to the horse and greyhound racing industries. State funding provided through the fund is pivotal to the survival of the horse and greyhound racing industries.

Amounts paid into the fund are approved by both Houses of the Oireachtas in accordance with the provisions of Section 12 of the Horse and Greyhound Racing Act, 2001

When the Horse and Greyhound Fund was established in 2001 it was expected that it would be fully financed from the revenue from excise duty on off-course betting. However the reduction in the rate of excise duty charged on off-course betting (5% down to 1%) combined with an increase in on-line and remote betting (which are currently outside the tax net) has led to a severe decline in the revenue from duty on off-course betting. Revenue from excise cuty on off-course betting has declined from €68 million in 2001 to approximately €27 million in 2011.

The Deputy will be aware that the Minister for Finance has published the Betting (Amendment) Bill 2012 which, when enacted, will ensure that all bookmakers taking bets from Ireland will pay betting duty on those bets in the same way that betting shops currently do. Betting Exchanges will also be subject to tax under the new arrangements but the calculation of the tax will differ from that applying to bookmakers.

The Indecon report, referred to above, made recommendations aimed at securing the viability and sustainability of the horse racing industry so that it can make the maximum contribution to the economy. The report’s recommendations covering such areas as the funding of the industry, the structure, size and nomination process of the Board of Horse Racing Ireland (HRI), the opportunities for streamlining the functions of HRI the Racing Regulatory Authorities (Irish Turf Club/Irish National Hunt Steeplechase Committee) and strategies to optimise the marketing and competitiveness of the sector are at present being addressed.

Details of the amounts allocated to the Horse and Greyhound Racing Fund are presented in the Table below.

The Horse and Greyhound Racing Fund