Martin Cullen (Waterford, Fianna Fail)

Government support for the horse and greyhound racing industries is provided through the Horse and Greyhound Racing Fund, which was established under the Horse and Greyhound Racing Act 2001. Under the provisions of the Act, the fund has received a guaranteed level of finance each year from 2001 to 2008. This was based on excise duty on off-course betting in the preceding year, subject to a minimum level based on the year 2000 amount adjusted for inflation. Any shortfall in the amount generated by the excise duty was made up by direct Exchequer subvention. In 2004, the Government put in place regulations to increase the limit of the Horse and Greyhound Racing Fund from €254 million to €550 million to continue the fund for a further four years to 2008. By the end of 2008 a total of €545.8 million had been paid out of the fund. The remaining balance in the fund at the start of 2009 was €4.2 million. Some €69.6 million has been allocated to the fund for 2009.

The rationale of the fund is that the horse and greyhound racing industries need certainty about funding support on a multi-annual basis and that the mechanism for such certainty should be derived from the duty generated from off-course betting. Prior to 2001 the horse and greyhound racing bodies were funded with annual grant-in-aid allocations as well as 0.3% of turnover and a fixed fee from off-course betting.

Funding of both of these agencies supports two very important productive industries and helps to sustain the important role of horse and greyhound breeding and training enterprises in the development of the rural economy. Together these industries these account for an estimated 27,500 direct jobs, generate very substantial economic activity and make a vital contribution to the rural economy including farm incomes. This is often forgotten. The funding given to the greyhound racing sector helps in sustaining a tradition that has existed for hundreds of years and in underpinning the economic activity of what are in many instances less affluent regions of the country.

This funding has allowed Ireland to develop into a world centre of excellence for horseracing. Horse Racing Ireland has undertaken a capital investment programme that has underpinned growth in the sector. The fund has also contributed significantly to the almost €90 million that has been invested in the improved facilities now available at greyhound tracks around Ireland. A review of the fund is nearing completion and will be submitted to the Government in due course in the context of deciding on the future funding of these industries. Any extension of the fund will require the approval of the Government and the Oireachtas. I will shortly bring proposals to the House as there is a technical requirement for me to do so.

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