Martin Ferris (Kerry North-West Limerick, Sinn Fein) | Oireachtas source

All Deputies will be conscious of the contribution that horse racing makes to the national economy, including through the large number of people it employs. In 2012, horse racing contributed €1.1 billion to the economy, and in 2013, its exports to 37 countries were estimated to be worth €205 million. The industry is also of significant value to the tourism sector. It is important, therefore, that we get this legislation right and ensure transparency and accountability in horse racing. The entire horse racing structure must be democratised. In that respect, I am concerned about the proposals on ministerial appointments and changes in the structure of the board of Horse Racing Ireland, HRI. Deputies are democratically elected and we need to see democracy at play in all aspects of political life and beyond.

The Bill seeks to change the current status of the Horse Racing Ireland board and the committee that submits policy decisions to the board for approval. Since its establishment in 2001, it has been the policy of the HRI board to approve committee decisions and recommendations. It could be argued that the primary reason for the proposed changes to the HRI board is to give more central control to the executive and dilute the power of industry bodies whose representatives are elected to the board by members. One could also argue that this has allowed large corporate bookmaking companies to exercise control over Horse Racing Ireland, a semi-state company. Online gambling is worth approximately €2 billion per annum, while land-based gambling is worth approximately €1.7 billion each year. As such, the gambling industry is worth nearly €4 billion per annum. Many people will argue that vested interests in the bookmaking chains have a strong lobby and exercise considerable influence through Horse Racing Ireland and its connections. This sends out a very dangerous signal.

The changes in the Bill support my argument that the legislation increases the powers of the executive. For example, it is proposed to reduce the number of elected representatives on the HRI board and increase the number of ministerial appointments to the board.

The Minister articulated his case and there was a lot of merit in much of what he said. However, the issue is the message it sends to people in the industry, right down to the stable boy.

Powerful on-course bookmakers now have provision for a seat on the HRI board, which they did not have in the past. That does not sell the right decisions. The change in structures for certain financial committees, including on media rights, that take power away from race courses and traditional industry bodies means a move from three seats to five with two appointed by HRI who are not members of HRI. This changes the balance of power in favour of the executive. I am looking at a table of the current and proposed composition of the HRI board. Nominations from the race and regulatory authority currently stand at five while nominations to the racing regulatory authority in the new board are reduced to three. The position regarding nominations from persons employed directly in the horse racing industry, which was workers and union representatives, has been changed also. The number of ministerial appointments is three, one of which is from the North of Ireland. While I welcome the all-Ireland approach, ministerial appointments are seen on the basis of past experience as a form of cronyism and as political in nature. That can leave a bad taste.

The new Bill seeks to remove any independent financial support from the industry body, the Turf Club, and give it to the executive of HRI. That will control and further weaken the industry body. Anything that reduces the integrity of a body such as the Turf Club or gives the impression of having done so sends a very dangerous signal. The integrity of that body must be protected, maintained and strengthened. Point to point racing, a sport that has never been mentioned in any legislation to date, was not mentioned in the Indecon report and has long had a basis in volunteering, is now being converted into a State Act. What is the point of an applicant applying to the racing regulatory body for a licence, the licence fee having to be paid to HRI and the fees then having to be paid back to the racing regulatory body by HRI? What signal does it send and what does it achieve?

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