Olivia Mitchell (Dublin South, Fine Gael)

I agree with the Minister that this is a highly important industry for many reasons, including employment and rural employment in particular. Horse Racing Ireland and the bloodstock industry together constitute one of our critical industries and it is appropriate that the State should ensure that horse racing is facilitated, if not subsidised. As this is such an expensive sport obviously it has difficulty breaking even and traditionally, betting has been used as a way of funding it.

However, the Minister must realise the present position simply is not sustainable. Even were a new fund to be created, I presume this would require legislation at some point during the year, it would not be sustainable for the taxpayer to pay more towards the sport of horse racing than to all other sports combined in respect of current expenditure. It is quite shocking to note that the Sports Council, which funds a considerable number of sporting bodies, received approximately €57 million this year while the racing fund, which admittedly also includes greyhounds, amounts to €66 million in current spending. This cannot be justified or sustained. Consequently, what thought has the Minister given as to how the industry is to be funded?

While I apologise for going on at some length, this is a complex issue. I understand the reason the tax rate has been reduced from 5% to 1% is because of the threat posed to bookmakers' shops by on-line betting. However, I am uncertain of the validity of that argument as I have not noticed any falling off in off-course betting. This year's results for Paddy Power PLC, show its profits were €72 million, half of which is attributable to on-line betting. However, the remainder came from the retail business that is done in off-course shops.

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