Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

I thank the Cathaoirleach and members very much for facilitating this engagement. Ensuring that the horse and greyhound racing industries achieve their maximum potential and in so doing, contribute to economic and social development over a wide geographic distribution, is an important aspect of Government policy. The valuable contribution to a balanced regional economy made by both the horse and greyhound industries is well recognised. It is estimated that the thoroughbred industry has an annual economic impact of €2.46 billion with direct and indirect employment of 30,000 people and that the greyhound sector benefits an estimated 10,000 people.

The importance of these industries has been acknowledged by successive Governments and they are supported through legislation and policy initiatives. The world-class reputation for excellence in horse racing, greyhound racing and breeding that Ireland enjoys today has been enabled by the support provided through public funds. The thoroughbred industry, in particular, brings a high level of international investment into Ireland. We are truly world class in this space with the success we achieve on the track, as well as the continued excellence we achieve in breeding.

The Irish equine breeding and racing industry is extremely competitive at an international level with our excellence in this space well acknowledged globally. Ireland is the second largest producer of bloodstock in the world by value sold after the USA. We are the world’s third highest producer of thoroughbreds foaled each year after the USA and Australia. The thoroughbred sector is very much a firm part of our identity. We look forward to working with Rásaíocht Con Éireann, RCÉ, and its newly appointed chief executive as it develops a new strategic plan. It is important to acknowledge the significant strides made by the industry in the areas of integrity and welfare in the last few years. My Department supports RCÉ in its progress and ongoing work in these important areas.

Government funding, in addition to supporting these key industries, presents an excellent opportunity to yield a high return for its investment leading to a flow of income through many levels of the economy, thereby providing widespread benefits to society. The sectors are crucial in driving a geographically balanced economy throughout our country.

The horse and greyhound racing industries receive financial support from the State through the horse and greyhound racing fund under section 12 of the Horse and Greyhound Racing Act 2001. Payments are made from the fund to Horse Racing Ireland, HRI, and RCÉ. In the period 2001 to date, a total of €1.64 billion has been paid from the fund to the horse and greyhound racing industries in accordance with the provisions of the Act. The cumulative upper limit on payments from the fund provided for under the relevant regulations has been reached.

Exchequer support provided from the fund is crucial to the survival and continued development of the horse and greyhound racing industries. To give effect to the provisions of budget 2024, the cumulative upper limit must be increased by regulation. The Estimates for my Department, passed by both Houses as part of budget 2024, include an allocation of €95 million for the horse and greyhound racing fund. This will be distributed in accordance with section 12(6) of the 2001 Act with 80% or €76 million going to HRI and 20% or €19 million going to RCÉ.

In order to allow my Department to provide the moneys allocated in budget 2024, it is necessary to comply with the technical requirement under section 12 (13) of the Act to increase the cumulative limit on the amount payable from the horse and greyhound racing fund by €95 million to some €1.735 billion. This is achieved by way of the regulations submitted to this committee today. The aggregate limit on the horse and greyhound racing fund has been increased in this manner in 2004 and in 2009 and each year since then until now.

With regard to the horse racing industry, according to the Deloitte report in 2023, the Irish thoroughbred industry has an annual economic impact amounting to €2.46 billion and supports direct and indirect jobs of some 30,000 people. The total value of Irish foaled exports sold at public auction last year amounted to more than €293 million. Horse racing generates a significant return to the rural economy. Of course, behind all the facts and figures are the thousands of people who, directly and indirectly, make the Irish racing and breeding industry what it is today.

Statistics released by HRI for horse racing and breeding in Ireland for the first six months of this year point to a continued resilience in the industry. Many figures compare favourably to the first six months of 2019, which was the last full year before Covid-19. As proven this year to date, Irish owners, trainers, jockeys and horses are continuing to set standards globally and their exceptional standards and achievements and enduring influence underscore our international prominence in this sector. The Irish equine breeding and racing industry is extremely competitive globally. The incredible passion and commitment to excellence displayed by everyone in the sector, from yard staff to jockeys to owners, allows us to consistently punch above our weight.

The importance of a strong welfare and integrity foundation to this highly successful industry is crucial and this is well recognised throughout the industry.

We continue to work with HRI, the IHRB and other relevant stakeholders to ensure the highest standards of integrity and welfare are maintained. In that regard, in November 2021, the committee published a report on horse racing in Ireland. At the committee’s request, an international equine anti-doping expert, Dr. Craig Suann, was commissioned to conduct an independent review of the IHRB’s anti-doping programme. This review concluded that the programme does “at least match international best practice in most respects and has made significant advances in recent years.” It is worth noting that the Government's funding, in addition to supporting this key industry, also presents an excellent opportunity to yield a high return for its investment leading to a flow of income right through the economy.

The EU-UK Brexit trade agreement reached in December 2020, which included the Northern Ireland protocol and, more recently, the Windsor Framework agreement, were welcome for the sector in seeking to facilitate movement between us and deal with the impacts of Brexit. However, the facility to move horses freely without veterinary certification between Ireland and Britain under an agreement known as the tripartite agreement, unfortunately, no longer applies, and this has added to cost and is a significant administrative burden to such movements. The global nature of major breeding operations illustrates that while Ireland arguably now has leadership position within Europe, its pre-eminence is not guaranteed.

I will touch briefly on the greyhound racing industry. As highlighted in the 2021 Power report, the industry supports 4,000 full-time jobs with 6,000 active greyhound owners. The total number of people deriving economic benefit from it is 10,000. Greyhound racing is very much part of the social fabric of many parts of our country. The fund provides to the sector the capacity to sustain a long-standing tradition and underpins economic activity throughout the country.

The future of the industry is dependent on a strong governance platform, and on the industry having the highest standards of integrity and welfare, founded on a robust regulatory system. Provisions in the Greyhound Racing Act 2019, which came into effect in May that year, will make a real difference in this regard. That legislation will strengthen the legal basis for the industry, with a view to fortifying the integrity of the greyhound racing sector and improving provision for greyhound traceability. The new Act also improves the governance of Rásaíocht Con Éireann, strengthens regulatory controls in the industry, modernises sanctions and improves integrity within the sector. It provides the industry with the real tools it needs to effect fundamental change and reform. It facilitates the board in focusing on its priority objective of achieving the highest standards of care and welfare of greyhounds. Further commencement orders for the small number of remaining sections will continue to be phased in as expediently as possible and, as implementation continues, enable RCÉ to ensure the important heritage associated with the greyhound racing sector in Ireland can continue under appropriate rules and regulations.

My Department, along with the sector itself, is committed to the continued strengthening of welfare standards in the industry. A key element of the new legislation is the provision, for the first time, for a full IT traceability system for racing greyhounds. This system traces life stages, including birth, registration, racing career and all changes of ownership and location through to end of life. Data from the system at the end of September indicated that 42,600 greyhounds were subject to traceability. Phase 2 of that tracing system, RCÉTS, is currently in development and will include additional functionality to facilitate the recording of injuries at RCÉ-licensed stadia during racing and official and unofficial trials. It will also capture details relating to euthanasia of a greyhound by a veterinary surgeon, medical records and health checks carried out by veterinary surgeons. In addition to its care and welfare programme, RCÉ has a comprehensive range of activity in the areas of regulatory, integrity and laboratory functions.

Given the wide geographic distribution of both these industries, I strongly recommend the adoption of the increase in the ceiling. I look forward to engagement with committee members. I again thank the Cathaoirleach for taking the time to facilitate this.