Oireachtas Joint and Select Committees

Wednesday, 19 November 2014

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance

Finance Bill 2014: Committee Stage (Resumed)

3:05 pm

Photo of Brian WalshBrian Walsh (Galway West, Independent)
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On the face of it, the proposal in amendment No. 67 appears reasonable in that the increase is modest. However, I would fear that the larger operators in the industry would be able to afford that 3% levy at the expense of the smaller, independent operators who employ thousands of people. We met some of those operators recently and they indicated very clearly that they would be against any increase in the levy. They support what the Minister is doing with regard to online and exchange betting but argued that any move to increase the betting tax for betting shops around the country would have a negative effect on the smaller, independent operators while the larger operators who have a big online presence would be able to absorb such an increase. The end result would be that betting shops across the country would be shut down, with the loss of thousands of jobs.

The opening hours provision in amendment No. 68 from the Minister has been welcomed by the industry. Industry representatives have given a commitment to increase the numbers they employ on the back of the extra hours their shops will be allowed to open. It is important that we listen to the bookmaking industry because it is an important supporter of horse racing in Ireland. If one attends race meetings anywhere in the country, one will see that the numbers attending have declined sharply in recent years. In that context, it is important that we support bookmakers because they are the drivers of much of the sponsorship of horse racing. There is an ongoing debate about the merits of the sponsorship of horse racing and sport in general by alcohol producers but bookmakers are ploughing lots of money into horse racing in this country. Horse racing is arguably one of Ireland's most successful international sports and employs huge numbers of people. We also have a significant horse breeding industry here. Indeed, Ireland is one of the largest breeders of thoroughbred horses in the world, surpassing both the UK and France. It is important that we listen to the bookmakers.

Again, while the increase proposed by Deputy Doherty is modest, it would have a detrimental effect on the smaller, independent operators across the country.