Charlie McConalogue (Donegal, Fianna Fail)
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I thank the committee for facilitating this discussion and engagement this evening. Annual funding to the horse and greyhound fund is important to both the thoroughbred and greyhound sectors. It is important expenditure from the State in support of both sectors. It is good to have an opportunity every year to appear before the committee to answer questions and elaborate on matters pertaining to the fund that members may wish to discuss.

An important pillar of Government policy is to ensure 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 of the country. Both industries make a valuable contribution to a balanced regional economy. It is estimated that the thoroughbred industry has an annual economic impact of €1.84 billion, with direct and indirect employment amounting to 29,000 people. The greyhound sector benefits an estimated 10,000 people.

The thoroughbred industry brings a high level of international investment into the country. We are world class in this space and very much the envy of the world with the success we have achieved, as well as the continued excellence we achieve in breeding. The sector is crucial in driving a balanced economy and it is one that we strongly support. 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 the economy, thereby providing widespread benefits for our society.

The Irish equine breeding and racing industry is extremely competitive at a global level. It is a beacon of excellence. Ireland is the second largest producer of bloodstock in the world by value sold, after the USA. We also have the world’s third highest number of thoroughbreds foaled each year, after the USA and Australia. The thoroughbred sector is in our blood and DNA; it is part of our identity. Ireland has proven itself to be the land of the saints, scholars and stallions. Successive Governments have acknowledged the importance of these industries and supported them through legislative and policy initiatives. The support provided by public funds through investment in these industries has enabled Ireland to develop a world-class reputation for excellence in horse racing, greyhound racing and breeding. Thanks to the hard work done to maintain the industries during Covid-19 and the exceptional support of the Irish people for the vaccination programme, people can again enjoy the special atmosphere of full attendances at outdoor events.

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 to Rásaíocht Con Éireann, RCÉ. In the period from 2001 to date, a total of €1.54 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. In order to give effect to the provisions of budget 2023, this cumulative upper limit must be increased by regulation. The Estimates for my Department, passed by both Houses as part of budget 2023, include an allocation of €91 million for the horse and greyhound racing fund. This will be distributed in accordance with section 12(6) of the Horse and Greyhound Racing Act 2001, with 80%, or €72.8 million, going to HRI, and 20%, or €18.2 million, going to RCÉ. In order to allow the Department to provide the moneys allocated in budget 2023, 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 €91 million to €1.64 billion. This is achieved by way of the regulations submitted to the committee today. The aggregate limit on the horse and greyhound racing fund has been increased in this manner in 2004 and in every year since 2009.

The 2017 Deloitte report into the economic impact of Irish breeding and racing, commissioned by HRI, indicated that the total direct and stimulated expenditure of the Irish breeding and racing industry was estimated at €1.84 billion in 2016. In addition, it was estimated that the industry supports the direct and indirect employment of 29,000 people. Horse racing generates a significant return for the rural economy and a positive international profile. Behind the facts and figures are the thousands of men and women who, directly and indirectly, make the Irish racing and breeding industry what it is today. Statistics released by HRI for the horse racing and breeding sector in Ireland for the first six months of this year point to a continued resilience in the industry. While some of the metrics are down year on year, many figures compare favourably with the first six months of 2019, the last full year before the Covid-19 pandemic for comparison. As proven in 2022 to date, Irish owners, trainers, jockeys and horses are setting standards globally and their stellar achievements and enduring influence underscore Ireland’s international prominence.

The Irish equine breeding and racing industry is competitive at a global level despite other major racing nations having much larger populations and economies. We are consistently punching above our weight because of the incredible passion and commitment to excellence displayed by everyone in the sector, from yard staff to jockeys and owners. The importance of a strong welfare and integrity foundation to this highly successful industry is crucial and is recognised throughout the industry. We work with HRI, the Irish Horseracing Regulatory Board, IHRB, and other relevant stakeholders to ensure the highest standards of integrity and welfare are maintained. In that regard, in November last year, this 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 equine anti-doping programme. This review concluded that the programme at least matches international best practices in most respects and has made significant advances in recent years. Nevertheless, improvements are always possible. It is worth noting that Government funding, in addition to supporting this key industry, also presents an opportunity to yield a high return for its investment, leading to a flow of income throughout the economy. Support for certain strategic industries is important for future economic growth and can provide widespread benefits for society and for the economy overall.

The EU–UK Trade and Cooperation Agreement reached in December 2020, which included the Northern Ireland protocol, was welcome from an industry perspective. However, the facility to move horses freely without veterinary certification between Ireland and Britain under an agreement known as the tripartite agreement no longer applies. This has added cost and a significant administrative burden to such movements. The global nature of major breeding operations illustrates that while Ireland arguably now has a leadership position within Europe, this pre-eminence is never guaranteed.

According to the 2021 Power report, the greyhound industry provides and supports considerable employment both directly and indirectly across the economy. It is estimated that in 2019, the industry supported over 4,000 full-time and part-time jobs in the economy. In addition, there are over 6,000 active greyhound owners. The total number of people deriving economic benefit from the sector is estimated at over 10,000. The funding provided to the greyhound sector helps sustain a long-standing tradition as the industry is part of the social fabric of our country.

This funding underpins economic activity across the country and is of particular importance in rural Ireland. 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 strong regulatory system. There is a strong commitment to improved animal welfare in this sector in the programme for Government. Provisions in the Greyhound Racing Act 2019, which came into effect in May of that year, are making a real difference in this regard. The legislation strengthens 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 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 real tools with which it can 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, Rásaíocht Con Éireann will be enabled to ensure the important heritage associated with greyhound racing in Ireland continues under the appropriate rules and regulations. The Department, along with the sector, is committed to the continuing to strengthen welfare standards. Future funding of the sector is contingent on welfare standards being upheld and this is reflected in annual parameters set out by my officials in their liaison with Rásaíocht Con Éireann.

A key element of the new legislation is the provision, for the first time, for a full IT traceability system for racing greyhounds. The Rásaíocht Con Éireann traceability system, RCÉTS, came into operation in January last year. The system provides a mechanism to ensure racing greyhounds are properly registered and traceable throughout their lives up to the point of rehoming or retirement. Life stages include birth, registration, racing career, all changes of ownership and location and end of life. Data from the system at the end of September 2022 indicate that 32,500 greyhounds were subject to traceability. It is intended that RCÉTS phase 2 will be developed next year. This will include additional functionality to facilitate the recording of injuries at RCÉ-licensed stadia during racing, official and unofficial trials; the capture of details relating to euthanasia of a greyhound by a veterinary surgeon; the capture of medical records and health checks carried out by veterinary surgeons; the recording of sampling history and adverse analytical findings; and reporting details of offences under the Greyhound Racing Act 2019. In addition to its care and welfare programme, RCÉ has a comprehensive range of activities in the areas of regulatory, integrity and laboratory functions. This includes activities relating to welfare inspections or investigations, testing regimes, veterinary services, financial support for the Irish Retired Greyhound Trust, IRGT, and contributions to private rehoming agencies.

Given the wide geographic distribution of these two industries, they are fundamental to the achievement of more balanced regional economic growth. Nurturing rural economies is a key priority for the Government and in this context, these industries should be recognised for the considerable contribution they make to rural economic activity and employment. The welfare of horses and greyhounds is a cornerstone of both industries and I am assured that HRI and RCÉ are striving to ensure the highest standards for the sports and their participants, on and away from the racecourse. The Horse and Greyhound Racing Fund has played a key role in providing investment and been instrumental in shaping the destiny of these industries. Brexit and Russia’s illegal invasion of Ukraine continue to pose an array of challenges to the Irish economy and coupled with the fact that we are a small and open economy prone to volatility, it can be somewhat difficult to fully predict what the future holds. It is therefore crucial we support these important industries and their continued navigation through these challenges as we enter next year. Accordingly, I am seeking the committee's support to ensure Horse Racing Ireland and Rásaíocht Con Éireann receive the funding provided for in budget 2023 and that the important role played by these industries, and the economic activity generated by them, are sustained into the future. I commend this regulation to the committee and I look forward to discussing any questions members may have.