Michael Creed (Cork North West, Fine Gael) | Oireachtas source

I thank the three Deputies for their questions. Deputy Cahill asked about the broadening of the tax base in the context of developments in online betting. By the end of this month, we will have witnessed the impact of the first full calendar year of the new system which was introduced in mid-2015. If I am not mistaken, the Department of Finance has indicated that it intends to observe the performance of the sector under the new regime when it has an opportune window to do so. It is open to considering the appropriate next steps in that context. I appreciate that there are many views on the matter. I share Deputy Cahill's view that on-course bookmakers are part of our horse and greyhound racing traditions. The demise of the on-course bookmaker would remove much of the colour, entertainment and value from the experience of attending horse and greyhound racing fixtures. I suggest that the boards of Horse Racing Ireland and Bord na gCon should reflect on how they might incentivise the continued participation of bookmakers in on-course activity.

I should mention that on-course bookmakers are also of value from the perspective of providing competitive leverage to punters who might be interested in other forms of betting. I suppose the march of technology is inexorable. There is ample documentary evidence of the rampant growth of online betting as the choice of many punters. I share Deputy Cahill's view that on-track bookmakers bring something unique to the table. I would like to see how Bord na gCon and Horse Racing Ireland might be able to use their respective roles to facilitate such activity. The Department of Finance could also look at this area in the context of tax legislation.

I will try to deal in no particular order with the many issues raised by Deputy Martin Kenny. Bord na gCon and Horse Racing Ireland both have provisions in place under the protected disclosures arrangements. Anybody who feels he or she has something to disclose can do so within that protected legal framework. That is as it should be. We all share the objective of having an industry that works well and is properly regulated, and in which people feel they can speak freely. That is important.

The inference from Deputy Kenny's comments about the ownership of horses is that it is becoming the pursuit of the elite. It is inevitable as we emerge from a difficult economic period that a number of owners will have fallen out of the system. I am aware that Horse Racing Ireland and the industry generally are anxious to address this matter. Not long after I was appointed Minister, I met a group of people who are involved in the running of point-to-point races, including community organisers, handlers, owners and trainers. We all discussed this issue in the same room. Many sole owners and syndicates opted out of horse ownership when people's discretionary expenditure fell by the wayside during the economic downturn. I am pleased to report that the most recent trends for 2016 indicate that things are picking up. I do not want to over-egg the figures in these early days. The number of horses in training has increased by 4.5%, the number of active owners has increased by 1%, the number of new owners has increased by 11% and attendances at race meetings have increased by 1%. A number of other indicators are moving in the right direction.

It is important to acknowledge this because the more broadly based the industry is, the better. There are farmers in every county who are involved in breeding horses. It is a broadly based rural enterprise. We read and hear a great deal about the cream of the crop who give us our international reputation as a country that does this business exceptionally well. Their success is based on the industry as a whole having the very solid foundation that is put in place by point-to-point owners, trainers and organisers. The work done by such people feeds into the success of people like Aidan O'Brien and Willie Mullins, who represent us with distinction on international stages. The challenge is to make sure we keep the foundations of the industry in solid health. I know from my engagement with people in the industry that they are extremely concerned about this.

Deputy Kenny suggested that certain issues in Bord na gCon need to be, as he put it, "dealt with". The Department has acknowledged the report previously published by this committee, the Morris report and the Indecon report I mentioned in my opening remarks. As a consequence of all these reports, I am committed to introducing legislation in this area at the earliest possible date. I imagine that the heads of the Bill will not now be published before the end of this year. I expect that very early in the new year, we will publish legislation dealing with a range of the issues in the industry that have given rise to concern and comment in the public domain. We will ensure the legislative framework for the industry is fit for purpose for the years ahead. We will address the issues raised in this committee's report, the Indecon report and the Morris report. It is important for members of this committee to have an opportunity to make an input into the collective process of ensuring the best possible legal framework is put in place for the industry. Participation in this industry by owners and trainers brings colour to life in rural Ireland. There are greyhound tracks dotted all over the country, from Mullingar to Youghal and many points in between. It has a certain appeal and it makes a significant financial input. That is why we need to put it on a solid footing, legislatively and otherwise, for the future.

Deputy Pringle asked whether these industries should be self-financing. He questioned the need to provide State funding of €80 million to support horse and dog racing. I remind him that the ambition of the industry is to grow. I read in a document that the horse racing side of this industry is worth more than €1 billion. State assistance will be required if the ambition of doubling that figure over the coming years is to be achieved. The State is putting funding into the programme of capital investment in racecourses, for example. I was fortunate enough to be in Listowel, which is in Deputy Ferris's constituency, earlier this year to celebrate an investment that is being made through Horse Racing Ireland to redevelop the facilities and thereby enhance the experience of punters when they go to Listowel Races. On the other side of that capital development, a flagship project at the Curragh has secured planning and is going through capital evaluation now. If I recall correctly, this €60 million project is funded by the State, Horse Racing Ireland, the Turf Club and outside funding.

It is important, in an industry in which we are a global leader, to have facilities that can showcase the industry in its best light. Therefore, the Curragh is important. So too are Listowel, Ballinrobe, Thurles and Tramore. It is important the facilities are up to scratch and that there is a significant capital investment programme that the State is involved in providing funding for. That is why I think the industry will do a lot in terms of foreign earnings and job creation opportunities. The State can help. The State does not turn its back on any other sector that has growth potential. It does not say that because a sector has an ambition to grow it should do it all itself. If we can assist and accelerate growth that brings a dividend to all of us in terms of tax revenues and employment creation, we will. That is why it is appropriate for the State to invest. It is an industry that is very broadly spread. It is by and large a rurally based industry.

The Deputy also mentioned the issue of harness racing. It was an issue Deputy Ferris raised 12 months ago in the context of the industry. It is not particularly germane to HRI. The Irish Harness Racing Association, as I understand it, is affiliated to Horse Sport Ireland. We have engaged with it in recent times. We provided €24,000 for a stud book related project. We assisted with €22,000 for an animal welfare project. There is also some funding received under the Leader programme for assistance with the racetrack in Portmarnock. More recently, my Department has engaged Indecon consultants to look at the financial potential of that sector as a bedrock on which to establish whatever funding requirements we might provide to that sector in the future. It is not that we have turned our back on any particular sector, and certainly a lot has happened since we engaged here last year. It is hoped the consultants who are now engaged will provide us with the rationale to exploit the potential of the sector further.