Michael Creed (Cork North West, Fine Gael) | Oireachtas source

I move:

That Dáil Éireann approves the following Regulations in draft:Horse and Greyhound Racing Fund Regulations 2017,copies of which were laid in draft form before Dáil Éireann on 13th November 2017.

I apologise to the House for being late. The horse and greyhound racing industries occupy a key position in the sporting and social landscape. As a nation, we have a strong affinity not just with racing but also with the social scene at its core. Government funding of these key industries provides an excellent opportunity to yield a high return on its investment. Support for certain strategic industries is important to future economic growth and can provide widespread benefits for society, as well as for the economy.

The industries receive financial support from the State through the horse and greyhound racing fund under section 12 of the Horse and Greyhound Racing Act 2001. My Department makes payments from the fund to Horse Racing Ireland and Bord na gCon. In the period 2001 to date, a total of €1.12 billion has been paid from the fund to the horse and greyhound racing industries in accordance with the provisions of the Act. The cumulative upper limit on payments from the fund provided for under the relevant regulations has, therefore, been reached. Exchequer funding provided from the fund is pivotal to the survival and continued development of the horse and greyhound racing industries. In order to give effect to the provisions of budget 2018, the cumulative upper limit must be increased by regulations.

This is because it is necessary to comply with the technical requirement under section 12(13) of the Horse and Greyhound Racing Act 2001. Doing so by way of these regulations allows us to increase the cumulative limit on the amount payable from the horse and greyhound racing fund by €80 million to some €1.2 billion.

The recent Deloitte report commissioned by Horse Racing Ireland indicates that the total estimated direct and stimulated expenditure of the Irish breeding and racing industry was €1.84 billion in 2016, with the core industry contributing €914 million of this and secondary expenditure the remaining €927 million. There are an estimated 15,200 jobs at the core of the racing and breeding industry and in directly related industries. The achievements of Irish bred and Irish trained horses abroad and the enduring influence of Irish born jockeys and stable staff underscore Ireland's global prominence. We hold the distinguished position of being the third highest producer of foals, coupled with having the third highest number of active brood mares in the world. Government funding is crucial to maintaining and building on our position as one of the world's leading breeding and racing nations. Moreover, this funding affords the State an excellent opportunity to secure a high return on its investment, leading to a flow of income throughout the economy. Support for certain strategic industries is important for future economic growth and can provide widespread benefits for our society, as well as the economy.

The greyhound industry is significant for Ireland and has been embedded in Irish society for decades. It is an important activity from an economic, social and cultural perspective and provides and supports considerable employment, both directly and indirectly, across the country. The greyhound sector went through challenging times during the economic recession, but it continues to make a significant economic and financial contribution to the economy, particularly at a local level. Bord na gCon's annual reports indicate that despite the severe recession, the industry is recovering, showing an increase in the operating surplus in 2015 and again in 2016. Funds generated from greyhound racing are reinvested in the industry through contributions to prize money and grants to various bodies involved in the greyhound racing and breeding sector, as well as the promotion of greyhound welfare and the regulation of the industry. Revenues generated have also contributed significantly to the improved facilities now available at greyhound tracks throughout the country. Greyhound racing is an activity that is inextricably linked with the farming community and while it is undoubtedly part of the fabric of rural Ireland, it also enjoys a strong urban support base.

The Horse Racing Ireland Act 2016 introduced a range of improvements in governance and accountability arrangements, many of which derive from recommendations made by Indecon International Economic Consultants following its review of the sector. Indecon was further commissioned to conduct a review of matters related to Bord na gCon in order to assess the suitability of the legal, governance and regulatory framework supporting the greyhound industry and identify opportunities to maximise its commercial income. In response to the recommendations made in the Indecon and Morris reports and the report prepared by the Joint Committee on Agriculture, Food and the Marine, I have introduced a draft general scheme of a greyhound industry Bill. The Bill will address the governance of Bord na gCon, strengthen regulatory controls in the industry, modernise sanctions and improve integrity with a view to building a reputation for exceptional regulation in the sector. The draft general scheme has progressed through the pre-legislative scrutiny phase and it is hoped a memorandum will be brought before the Government in the coming weeks requesting approval to publish the updated scheme and submit it to the Office of the Parliamentary Counsel for drafting. The legislation will bolster the greyhound industry, enable it to deal with existing challenges and maximise its future potential.

Horse Racing Ireland and Bord na gCon face significant challenges as they work to grow and develop the horse and greyhound racing industries in a competitive and mobile market. I am confident, however, that both industries have tremendous growth potential, with sporting, leisure, tourism and cultural appeal across a wide demographic, both national and international. The thoroughbred horse industry is a major driver of the economy and both industries breathe life and jobs into their respective communities from the grassroots up. The hugely important contribution made by the horse and greyhound racing fund since its inception in 2001 has been vital in ensuring the industries can continue to invest in their infrastructure. The €80 million allocation for which I am seeking the approval of the House is vital in securing rural jobs and sustaining communities. The regulations are necessary to ensure Horse Racing Ireland and Bord na gCon will receive the funding provided for in budget 2018 and that the very important role played by the industries and the economic activity generated by them will be sustained into the future.

I commend the motion to the House and look forward to discussing any matter arising.

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