Oireachtas Joint and Select Committees
Wednesday, 24 April 2013
Joint Oireachtas Committee on Transport and Communications
Sponsorship of Major Sporting Events by Drinks Industry: Discussion (Resumed)
9:40 am
Ms Sarah O'Connor:
As our chairperson stated, Irish sport matters. It is easy to assume in a country as passionate about sport as we are that sport is something which simply happens, or that the success Irish sport has enjoyed in recent years in terms of increased success on the international stage and the growing number of people who are partaking in sport at home is a lucky coincidence. Nothing could be further from the truth. Sport, although it has a largely voluntary work force, still needs to be managed, planned, delivered and, above all, financed. Money for sport matters and funding is crucial. It would be naive to believe that only the three major field sports would suffer from the introduction of a ban on alcohol sponsorship of sport. The removal of an entire category of sponsor would reduce the pool of available sponsors to all of Irish sport, reducing both the availability and the value of the overall sponsorship pool. This would damage all of Irish sport.
The reality is that funding for sport is already in short supply. In particular, overall Government investment has dropped from a peak of €311 million in 2008 to just over €54 million for the current year. Irish Sports Council funding, on which our members are so reliant, has fallen from just over €57 million in 2008 to just over €43 million for the current year. This decline in Government funding has been matched by increased pressure on other revenue streams, in particular, member affiliations, ticket prices, where applicable, and sponsorship. Our members, many of whom struggled to get sponsorship during the best of times, maintain they have never operated in such a challenging sponsorship environment. This is backed up by the reality that some of our most prominent sporting brands have yet to confirm sponsorship agreements for the coming season.
In addition, sport, unlike the rest of the not-for-profit sector, does not benefit from charitable status. This is a reality that places sport at a distinct disadvantage in terms of attracting philanthropic investment compared to the remainder of our colleagues in the not-for-profit sector, for example, those in arts and culture. When discussing sports funding, it is important to reflect on the return that sports provides to the people. The real impact of sport to Ireland is not only on the playing fields or in the sports facilities dotted throughout the country. Irish sport has a significant impact on our communities. Ms O'Shea has already referred to the fact that more than 500,000 Irish adults volunteer in sport each year. This makes sport the biggest single driver of active citizenship in Ireland. A depletion of funding streams would inevitably lead to a redirection of funding from programmes benefiting our communities throughout the country.
The economy is another consideration. Some 40,000 jobs are supported in Ireland from sports. It generates €1.8 billion of household spending each year and contributes 1.4% to GDP. A reduction in funding is likely to see pressure on jobs supported by the sports industry in Ireland. Sport delivers dividends of in excess of €850 million in tourism receipts to Ireland. Banning alcohol sponsorship is likely to have a significant impact on Ireland's ability to bring international sports events to Ireland. The Volvo Ocean race, the Ryder Cup, the European Rugby Cup finals are all examples of past and future sports events coming to Ireland that are dependent on alcohol sponsorship.
Irish sport recognises the significant health and social challenges facing Irish society from alcohol misuse. However, there are many ways in which these issues can be addressed. This point is outlined by the report of the task force on substance misuse which made 45 recommendations regarding the issue, only one of which is the issue before us today. The report also commended the sports industry for its adherence to the existing self-regulation codes, including, for example, the non-display of alcohol sponsors on underage replica jerseys. Irish sport is firmly of the view that a ban on alcohol sponsorship in sports would have a detrimental effect on Irish sports and on the returns sports generates for Ireland. There is a better way which, we believe, is at least worth trying before such a blanket ban is introduced. The alternative is for active engagement between sport and public health officials to ensure that Ireland's sporting network, which is unrivalled in terms of its reach and the number of people involved, can assist the Government in the implementation of its strategy to tackle responsible alcohol usage and other public health issues. When he was before the committee recently, the director general of the GAA, Paraic Duffy, highlighted two programmes the GAA is currently running to address these issues, the alcohol and substance abuse prevention, ASAP, programme and the healthy clubs project. This is something that all in sport would be willing to adopt and roll out. The federation in conjunction with the HSE would be more than happy to facilitate this process.
If a ban on alcohol sponsorship was introduced, where would the line be drawn? Sport could be left vulnerable to similar plans on sponsors from other sectors such as food, soft drinks and betting, thereby further reducing the pool of potential sponsors and, ultimately, funding for support. Sport is good for our economy and it is good for our health. More important at the moment, it is good for our communities. Irish sport matters but it does not simply happen. We need to encourage funding for sport not obstruct it.
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