Martin Heydon (Kildare South, Fine Gael) | Oireachtas source

I welcome this much-anticipated Bill, which has taken a frustratingly long time to come before the House. The Minister's determination to have the legislation dealt with has ensured that it has finally been introduced, which is great. The Bill, which has been welcomed by the horse and greyhound industries, is also a positive for the betting industry in that it provides a regulatory system for remote bookmakers and intermediaries. It also provides for fair and equal treatment for all bookmakers operating in the State, regardless of their location. The Bill amends the Betting Act 1931 and I am sure everyone agrees that betting patterns have changed considerably in the intervening 83 years.

While the main purpose of the Bill is to extend the licensing and taxation regime to remote bookmakers and betting exchanges, it also provides for important change to the opening hours of registered bookmakers. I very much welcome the move away from the winter time-summer time scenario. As already stated, the Bill is also designed to provide a level playing field for all operators in the industry. Until now, there has not been a mechanism for taxing remote operators. The old winter-time rules forced bookmakers to close their premises early at certain times of the year. As a result, if an evening greyhound meetings was taking place in, for example, Dundalk, those who wanted to place bets were forced to go online to do so and the State was not able to obtain any taxation revenue as a result. There is a need for a level playing field and for everyone to be treated in the same way. This might have had an impact on larger bookmaking firms with a significant online presence but those who were really being caught out were the small independent operators who employ large numbers of people throughout the country. I welcome the proposed change in this regard.

The Bill is a first step in a process to try to address an imbalance which developed as a result of a policy adopted by previous Governments. I listened with interest to the contributions of Deputies Michael McGrath and Browne, who bemoaned the fact that no attempt is being made to try to increase the tax on betting from 1% to 2%. They must remember that a Fianna Fáil Minister for Finance was responsible for reducing the tax from 2% to 1% in 2006. Colm McCarthy has stated that the decision made in this regard looks increasingly like a mistake and has resulted in inadequate funding for racing and inadequate returns for the Exchequer. In the report he compiled for the then Government, Mr. McCarthy pointed out that even if the betting tax were increased from 1% to 2% - which would generate between €60 million and €70 million in revenue - Ireland would still have one of the lowest rates of betting tax in the world.

Deputy Michael McGrath is correct in stating that the racing industry never wanted to be subvented by the Exchequer. However, it was failed Fianna Fáil policy which has led us to this point. The policy introduced by a previous Administration in 2006 in order to attract new entrants to the market has not worked. Not one new major bookmaker has entered the marketplace. What has happened instead is that betting turnover in Ireland has increased significantly, from €1.3 billion to in the region of €4.5 billion. However, the report compiled by Indecon in 2012 indicates that the tax take for the Exchequer fell from €68 million in 2001 to €27 million in 2011. Those figures are staggering. At a time when we are being obliged to make extremely difficult decisions which have an impact on every sector of society, we cannot justify such a low return in tax revenue. That is why I am of the view that the Bill should be on the first in a series of measures.

I was surprised that very few of the previous contributors touched on the key and inextricable link between the horse racing, horse breeding and greyhound industries and the Bill. The horse racing and horse breeding industry is absolutely vital to rural areas where there are not many jobs available. The industry has a turnover that is in excess of €1 billion and it employs approximately 16,000 people. Most of the jobs in the industry are located in areas in which there are not many other employment options. I know this because approximately 4,000 people in the county in which I live, Kildare, are directly employed in the industry. Ireland is the only country in the world in which the racing industry does not receive an automatic direct payment from the gambling industry. Ultimately, it relies on the product of the racing industry.

This Bill relates to the area of finance and I will not concentrate on the perils or otherwise of excessive gambling. However, in 2011 the gambling industry's turnover was €4.5 billion while it only contributed €27 million in tax revenues. Ireland's horse racing and horse breeding industry is a world leader, albeit on a shoestring budget subvented by the State. The horse and greyhound fund is probably the best value-for-money investment made by the Government in any industry. In the long term, however, we want to move to a position where the industry will again be able to stand alone financially and benefit from the funding it raises.

As stated, some 16,000 people are employed in the industry. It is not that long since that figure stood at over 20,000. I am of the view that, with proper support and investment, employment levels within the industry will return to this high. In the process, we will safeguard Ireland's position as a world leader in the horse racing and horse breeding industry. Ireland is there to be shot at and every other country wants to replicate what is done here in order that we might be taken down a peg. The level of investment being made by competitor countries such as France and Australia is both mind-boggling and frightening. We must be aware of the threat in this regard.

Racing revenue is not just for the wealthy. In that context, people have referred to Coolmore Stud and other establishments. It is an easy tag to apply but 90% of those who breed horses have four mares or fewer. Invariably, these people operate in rural agricultural areas and they are involved in real economic activity. The Punchestown racing festival in my constituency and the Galway racing festival are each worth approximately €60 million to their local economies. Ireland is the fourth largest producer of thoroughbreds in the world. It produces 40% of EU output in this regard and some 11% of world output. Irish horses are exported to over 35 countries across the globe and the total value of this activity last year amounted to in excess of €150 million. The industry is an important source of high-value foreign direct investment into Ireland, mostly in rural areas. It is not possible to have a successful breeding industry in the absence of a racing industry and vice versa. The two are interlinked. Neither industry will survive if adequate funding is not provided. There has been a massive decrease in the level of funding available to the racing industry in recent years. Obviously, all sectors of the economy have experienced similar drops. However, the low level of funding available cannot be sustained in the long term.

The Government is well on its way to ensuring that the economy recovers. The large multinationals responsible for foreign direct investment in Ireland and the smart economy are important aspects of our recovery. However, I am of the view that there is no need to reinvent the wheel in the context of seeking to get the country back on its feet. We must instead concentrate on what we are good at. In the context of the horse racing and horse breeding industry, we have the necessary expertise and individuals, the relevant soil type and the pertinent structures. In addition, we also have a reputation as being a world leader in the area. I am of the view that the industry must be protected to the very last. The Bill represents the first important step in ensuring that we will return to a position where the industry will be adequately funded and I commend it to the House.

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