Oireachtas Joint and Select Committees

Tuesday, 27 November 2018

Joint Oireachtas Committee on Agriculture, Food and the Marine

Horse and Greyhound Racing Fund Regulations 2018: Motion

3:30 pm

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour) | Oireachtas source

The Labour Party has always recognised the important role that the horse and greyhound industries have played, especially in the rural economy where they are a backbone of employment. They are also important for the preservation of our cultural development and so on. We should maintain our important role in the equestrian and greyhound industries at home and abroad. The Minister has a copy of the submission from the IHRA. He wanted a copy of the five-year plan and I understand it was submitted to him in mid-October. He has an opportunity to review that. When we raised the matter last year at this committee, we understood that he would give it serious consideration and, therefore, I anticipate that he will do so. Only €750,000 is required. It is not just seed funding; the industry needs some capital funding as well. Seed funding is all right but capital funding is critical. It will make a contribution in the future and it has set a basis. The Minister was correct to insist on the IHRA satisfying certain criteria. It has done so in respect of the protection and integrity of the sport and its structures, as well as in respect of welfare and so on. It is important for the Minister to recognise this and give the sport an opportunity from 2019.

Last week, the Sports Horse Alliance made a forceful contribution to our committee on various issues and we cannot easily dismiss them. We should pay attention to the points Mr. Broderick and others made to the committee. I am long enough here and I think the Minister was here himself in 2001, when the then Minister, Joe Walsh, brought forward the Act in this area, which I supported. As far as I can remember, the ceiling for the fund at that time was €200 million. It has increased to €1.3 billion over a 17-year period. There has been 650% growth in that fund despite a recession in the interim. We had a couple of recessions, in fact, one of which was not just a recession but a blowout. That is fairly serious. It is significant funding that is going directly from the taxpayers to those two industries, and that has to be recognised. The important issue is to ensure value for money and the Minister is cognisant of that. The central question is whether the public is getting value for money from this increasing subsidy to both industries. Doubtless there is importance to preserving and protecting jobs in traditional industries, keeping traditions vibrant and protecting them going forward. However, the subsidy is increasing far in excess of inflation. Horse Racing Ireland appears before the committee, and we have certainly put new governance structures and so on in place.

It has indicated that its objective is to get to the point at which it does not have to rely on the Department or the Exchequer for any funding, and to enable tax revenues to be raised by remote and online betting. I would like to see that day. At the end of the day I am hopeful that this will happen. It is extremely important to people out there. In 2016, about €37 million went on prize funds. I am quite happy for prize funds to go to the ordinary small horse trainers and horse owners, and small racecourses like Kilbeggan, Ballinrobe, Roscommon, Thurles, Clonmel and Naas. Gowran is not too bad. Connolly's Red Mills is a good sponsor.

It is hard for those small concerns to survive. They are looking for sponsorship. As far as I can see a lot of prize money goes to two or three places. The big boys are cleaning up. Their stallions are tax-free. They are bringing home the bacon every weekend. That is grand up to a point, but soon the little people will be washed away. I do not mind taxpayers' money going towards minding the little people. I do not mind where it goes as long as it is protecting them. There are lots of great people down there, the Peter Downes of this world in concerns like Russelltown Stud. They have been great breeders over the years. They have given us great horses that have won major races. It is a tough job for those people to survive with three or four mares. It is a very easy job for those who can command €75,000 or €175,000 in stallion fees. It is not too hard surviving in that game. Those people can then go out on Saturdays and Sundays and clean up. A lot of this money is going into the prize funds.

I am in this game, so I have an idea about it. I am in it to represent the little people. The people who have accountants and everything else are well able to look after themselves. I have no sympathy for them at all. I am looking forward to Mr. Kavanagh's appearance here. This is not the job of the Minister, Deputy Creed, but I would still like to send a signal to him. I am looking forward to the appearance of the chairperson or chief executive of Horse Racing Ireland, HRI, before the committee. I have a few points to follow up on. For example, I refer to Kilbeggan Racecourse. Senator Daly is its chairperson. He is not here today as he is at another committee meeting. That racecourse was looking for a few bob for a long time. Conditions were attached that are not attached to other loans or grants. I want to drill down into this. I am quite happy for money to be provided. However, prize money must be increased for the sake of the small racehorse trainers, the ordinary owner and the little syndicates that keep the sector going through thick and thin.

In 2016, HRI saw a group surplus €4.8 million. That can obviously be achieved when owners are charged for renewing colours. If an owner has a set of colours in 2017 and wants to have the same set of colours in 2018, he or she has to pay to renew them. That is a nonsense. If a GAA club does not change its jersey it does not have to go the county board and pay for a renewal from January. As the former chairperson of a county board, the committee Chairman knows that.

There are too many little obstacles affecting the small players. As a man said to me years ago, if someone owes a bank manager £1,000 and they do not pay it they will be arrested. If someone owes £100,000, someone would be scrubbing the floors of the bank in case they fell on their way in. That was the way it was, and it is the very same with this. There is an old saying where I am from. I cannot use it because there is a little profanity in it. There is too much grease oiling the wheels. The very well-to-do are getting richer out of this game. The little people are struggling. With that reservation I support what the Minister is doing, but I wish to signal that my support is no longer free and easy. It is qualified support on the basis of ensuring that small tracks get a good share of the money and the small trainers and syndicates have an opportunity to secure decent funding through prize money when they enter horses in races.

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