Jimmy Deenihan (Kerry North, Fine Gael)

I supported this motion when it was presented to the Joint Committee on Arts, Sport, Tourism, Community, Rural and Gaeltacht Affairs and I support it again today. The horse and greyhound racing fund was established under the Horse and Greyhound Act 2001 and by the end of 2004 Horse Racing Ireland will have received approximately €206 million from it and Bord na gCon, €51.6 million, leaving an Exchequer funding requirement, I understand, of about €45 million. I believe this is good value for money, judging from the results of the Indecon report and income figures from Bord na gCon over that period.

I am glad the Minister has stated that the fund will be self-financing and cost-neutral, requiring no Exchequer expenditure by 2008. Judging by the current increase in off-course betting, at about 20% per annum, a rate of 15% a year dropping down to 5% would guarantee the scheme is cost-neutral by 2008. I hope the use of taxpayers' money to boost this fund at that time would not then arise, if the trend continues. People should realise that the off-course betting market employs approximately 3,500 workers. This would not occur without horse and greyhound racing, and the jobs would not be there. There is the question of the redirection of taxes to support the greyhound and horse racing industries. This is commonplace throughout the world and is not peculiar to Ireland. We have thriving horse and greyhound industries because of the few incentives we have.

A report in the Sunday Independent of 17 October 2004 stated that last January the British horse racing board introduced incentives which give an extra 25% prize money to British horse breeders. British-bred fillies and mares running and winning under national hunt rules get 50% more than Irish runners in the same race. That surely is a major incentive. In France transport costs to races are refunded to native horse owners while French-bred winners get up to 75% extra prize money. Both Italy and France run closed races for native-bred horses, which critics suggest amounts to de facto protectionism. I notice in the Indecon report that in Kentucky, for example, which is a leading breeding location, the state legislature is considering the introduction of a sales tax exemption. When one looks at countries such as Australia and New Zealand as well as other states in America, the current trend is to give incentives to the horse racing and greyhound industry, especially to encourage breeding. Ireland is not unique in this regard.

As regards the greyhound sector of the industry, with which I am most familiar, this generates approximately €275 million annually and provides in excess of 2,000 full-time equivalent jobs. These are figures recently provided by Bord na gCon. The PAYE and PRSI generated is anticipated to exceed €8 million annually, with significant Exchequer revenues from VAT on fees and professional services as well as the costs of development expenditure by owners and breeders and the reinvestment in facilities to capitalise on this buoyant industry.

The sale of greyhounds generates approximately €40 million and this provides an important lifeline to supplement on-farm incomes, thereby preserving many farms. As we know income from mainstream farming is dropping. A number of farmers are supplementing this income by breeding and selling greyhounds. In many cases, they breed and sell horses as well. As the Minister pointed out, there has been major development in the provision of tracks across the country. I am aware of the advantages Tralee track has for the tourism industry in Kerry as well as for the greyhound fraternity and the fact that it has become a major social centre, with young and old enjoying weekend racing and whole families attending. This is being replicated across the country. People do not fully understand the social impact of greyhound racing because it is an evening sport. This is true of horse racing also, but particularly greyhound racing.

There are fine stadiums in Shelbourne Road and Harolds Cross in Dublin and throughout the country, as the Minister pointed out. The extension of the fund will enable Limerick to be built, for which a figure of €10 million has been earmarked. A figure of €4 million has been earmarked for Enniscorthy, €5 million for Kilkenny, €3 million for Clonmel and €2 million for Thurles. These are all important facilities which will give employment to people from the locality and will benefit people from all walks of life. In addition, there is a major employment factor for part-time workers and those currently without jobs. Therefore, it is not just the preserve of one sector of the community. Everybody benefits from it.

Without such investment over the past ten years, the industry would not have grown to the extent it has. The in-depth report by Indecon on the Irish racing industry shows that more than 13,000 people are employed in the horse racing sector. That is a considerable number and it should be recognised.

I hope advances will be made in getting the Northern Ireland Assembly functional again. I ask the Minister to promote the idea of having one greyhound board for the whole country. That is very important. There are just two tracks in the North, in Derry and Ballyskeagh, both of which are under funded. We are operating different regulations and control systems and it is important the Minister would promote the idea of having one greyhound board for the whole country. I will support him in doing that. I appeal to him to do that in case I do not get an opportunity to do so for some time.

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