Seán Barrett (Dún Laoghaire, Fine Gael)

I wish to raise a point relating to section 46 of the Bill which makes a number of amendments to Chapter 1 of Part 2 of the Finance Act 2002, in connection with the taxation of betting and related activities. Subsection (2) provides for the repeal of sections 17(2) and (3) of the Finance Act 2009, relating to the rate of betting duty. This provision was made in 2009 which allowed the Minister to increase the betting tax from 1% to 2%. I am aware of the changes being proposed here and to which I have no objection. However, I find it extraordinary that the Minister sees it necessary to repeal this subsection. It is included as a precaution. In the event of the new system not working, it would be easy for the Minister to increase the rate from 1% to 2%.

With regard to betting tax in general, one of the most important industries outside of the cities and towns in this country is rural-based horse breeding and horse training. It supplies a great number of jobs in areas where it is extremely difficult to get employment. Regardless of whether we like it, the number of jobs is reducing. A total of 85% of foals born in this country are exported so this is a valuable export industry in itself. People will not breed horses unless there is a reasonable chance of a reasonable return in prize money when the horse is put to race. Horse Racing Ireland does not have the money to give to prize money or to provide any other grants for improving conditions at race tracks or at dog tracks in the case of the greyhound industry. Both industries are vitally important.

When Fine Gael went into Government in 1982, betting tax was 20%. In his first budget, Alan Dukes reduced the tax to 10%. Over the past number of months and years, we have heard whingeing from bookmakers about a 1% or a 2% levy. We cannot expect the taxpayer to fund racing and those involved in the industry do not want the taxpayer to have to fund it. I enjoy a bet from time to time and I have no problem paying 2% tax on my bet. For every €100 bet, I will pay €2 and 20 cent for every €10 bet. Kids will not pick up a 20 cent coin off the street nowadays and yet we are allowing an industry to collapse. We are fussing around with bookmakers who are complaining, the Paddy Powers and the Ladbrokes of this world. They go on about the jobs they are creating but they forget about the jobs being lost.

I appeal to the Minister not to include this provision as there is no reason to repeal that subsection. It should be left in the Bill in the event that a future Minister may think it necessary to increase the rate from 1% to 2%. I ask the Minister, not from a party political stand point but in the event of helping the industry as a whole, to leave the tax alone. If the new provisions do not work then there is a fall back to increase the rate from 1% to 2%. I ask the Minister of State to ask the senior Minister to agree to delete this provision on Report Stage if not now and to allow the rate stand. I welcome the efforts being made by all concerned, including those in the Department of Finance, to deal with offshore betting and the attempt to deal with the exchange betting. Great efforts have been made and I congratulate those involved.

We must ensure that an important national industry does not fall by the wayside like it has in other countries. It should be borne in mind that Ireland and Britain are among the few countries with off-course bookmakers. All other countries depend on funding racing and the greyhound industry through Tote betting. I have no vested interest other than to see an industry thriving as it is a great flagship industry for the country. Ireland is renowned for its horses and nothing should be done to damage that industry. This provision is completely unnecessary, in my view.

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