Mr. Brian Kavanagh:

It will. It is not exceptional. Hong Kong is a good example. It has probably the most sophisticated betting sector in the world. People are only allowed to bet on horse racing and soccer and tax revenue goes back to fund the horse racing sector. It is a case of how one looks at it. The sector gets no real supports other than the horse and greyhound racing fund compared to other agricultural sectors. The total fund that goes into horse and greyhound racing fund is 2.7% of the annual budget of the Department of Agriculture, Food and the Marine. It is 5% of the voted expenditure. Of the money that comes from the EU, and the money that comes through the Department or through the Vote, it is a relatively small percentage. The food sector, fisheries and forestry get direct support. There is a logical argument that there should be direct support for this sector, in particular in terms of the arguments about rural areas. If we are serious about supporting rural Ireland, the Vote should support this sector because it is a bastion of the rural economy and it presents a good image for Ireland internationally.

The system worldwide is that betting funds racing. The horse and greyhound racing fund was set up and the betting tax was ring-fenced for horse racing and greyhound racing. The bulk of betting still takes place on horse racing and greyhound racing, in particular in betting shops. The betting that is not on horse racing and greyhound racing is largely on events that are outside Ireland anyway. Senator Lombard is correct that it needs to be looked at. There was a three-stage process - first, get the offshore issue addressed; second, look at the rate; and, third, look at the distribution of the rate. That is certainly something on which we would like to engage with the committee.