Martin Cullen (Waterford, Fianna Fail)

I propose to take Questions Nos. 7 and 10 together.

Government support for the horse and greyhound racing industries is provided under the horse and greyhound racing fund, which was established under section 12 of the Horse and Greyhound Racing Act, 2001. Section 12(6) of the Act specifies that, of the moneys paid into the fund each year, 80% shall be paid to Horse Racing Ireland and 20% shall be paid to Bord na gCon.

In 2004, and earlier in 2009, the Government put in place regulations to increase the limit of the fund. By the end of 2009, a total of €613.9 million will have been paid out of the fund. In 2008, €76.3 million was allocated to the fund. Of this, €36.4 million was derived from excise duty on off-course betting, with €39.9 million provided by the Exchequer. In 2009, of the €68.1 million allocated to the fund, €36.6 million was derived from betting duty, with €31.5 million provided directly by the Exchequer. Some €59.3 million has been allocated to the horse and greyhound racing fund for 2010. There are no projections available for excise duty on off-course betting for that period.

Funding of both Horse Racing Ireland and Bord na gCon 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. These industries, together, 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.

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 in what are, in many instances, less affluent regions of the country. The funding has also contributed significantly to the almost €90 million that has been invested in the improved facilities now available at greyhound tracks around Ireland. The funding has allowed Horse Racing Ireland to undertake a capital investment programme that has underpinned growth in the sector. The funding has allowed Ireland to develop into a world centre of excellence for horse racing.

The Deputy will be aware that a review of the horse and greyhound racing fund has been completed this year. In that context, a report on the horse and greyhound racing fund by FGS Consulting has been produced.

The report states that, while not all aspects of the total contribution of the sector can be definitively quantified, adequate direct and indirect evidence supports a strong argument that the horse and greyhound racing industries constitute a major source of direct and indirect employment, give rise to considerable domestic and export earnings and are a key driver of substantial economic activity, especially in rural areas. On this basis, the report argues there is a strong underpinning for the original objectives of the fund in providing Exchequer support to promote and enhance these indigenous industries based on their potential to yield a substantial economic return.

The report maintains any sharp withdrawal or curtailment of funding in the short term would likely have major detrimental impacts on the industries involved, with the consequent risk of undoing much of what has been achieved since the fund came into existence in 2001. At least in the medium term, these industries need secure State support. If this were not available, employment would fall, infrastructural development would not take place, the product would deteriorate, integrity would become compromised and the industries would be seriously undermined.

Some €59.3 million has been allocated to the fund for 2010. This substantial funding will build on the almost €614 million already invested in the industries since 2001. I intend to work closely with Horse Racing Ireland and Bord na gCon to ensure that these important industries continue to contribute to the economy. To give effect to this Estimates allocation, it is necessary under the relevant provisions of the Horse and Greyhound Act 2001 to have the increase in the horse and greyhound fund specified by regulation. The process commenced earlier this week with the laying of the draft regulations before the Houses. The appropriate offices of the Dáil and Seanad have been contacted to request the resolution be placed on their respective Order Papers.

I hope to appear before the Joint Committee on Arts, Sport, Tourism, Community, Rural and Gaeltacht Affairs in January with a view to making the regulations shortly thereafter so that the 2010 funding to Horse Racing Ireland and Bord na gCon can be paid out.

See this speech in context