Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

I move:

That Dáil Éireann approves the following Regulations in draft: Horse and Greyhound Racing Fund Regulations 2021, copies of which were laid in draft form before Dáil Éireann on the 20th October, 2021.

An important pillar of Government policy is to ensure that the horse and greyhound racing industries achieve their maximum potential and in doing so contribute to economic and social development over a wide geographical area. As we know, the horse and greyhound racing industries make a valuable contribution to a balanced regional economy. It is estimated that the thoroughbred industry has an annual economic impact of €1.84 billion with direct and indirect employment of 29,000 people and that the greyhound sector benefits an estimated 10,000 people economically. The thoroughbred industry, in particular, also brings a high level of international investment.

Government funding in addition to supporting these key industries presents an excellent opportunity to yield a high return on its investment leading to a flow throughout the economy thereby providing widespread benefit to our society. Support for certain strategic industries is important for future economic growth and can provide widespread benefits for society as well as for our economy. The Irish equine breeding and racing industry is extremely competitive internationally. It is a real beacon for excellence. We are the third biggest producer of thoroughbred foals in the world and estimates place Ireland only behind the United States as the biggest seller of bloodstock by auction globally.

The Government acknowledges the importance of these industries and has supported them through legislation and policy initiatives. The support provided by public funds through investment in these industries has enabled Ireland to develop a world-class reputation for excellence in horse racing, greyhound racing and breeding. Thanks to the hard work and exceptional support of the Irish people for the vaccination programme, the Government continues the gradual reopening of society. Since 22 October, following the easing of Covid restrictions in line with the strategy of Reframing the Challenge, Continuing our Recovery and Reconnecting, full attendances have been allowed at outdoor events. This situation is being kept under review.

The horse and greyhound racing 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 to Rásaíocht Con Éireann. From 2001 to date, €1.46 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 legislation has been reached. Exchequer support provided from the fund is crucial for the survival and continued development of the horse and greyhound racing industries. In order to give effect to the provisions of budget 2022, this cumulative upper limit must be increased by regulation approved by both Houses of the Oireachtas.

The Estimates for my Department passed by both Houses as part of budget 2022 include an allocation of €88 million for the Horse and Greyhound Racing Fund. That is to be distributed in accordance with section 12(6) of the Horse and Greyhound Racing Act 2001 with 80% or €70.4 million going to HRI and 20% or €17.6 million going to Rásaíocht Con Éireann.

In order to allow my Department to provide the moneys allocated in budget 2022, it is necessary to comply with the technical requirement under section 12(13) of the Horse and Greyhound Racing Act to increase the cumulative limit of the amount payable from the Horse and Greyhound Racing Fund by €88 million to €1.54 billion. This is achieved by way of the regulation submitted to this House today. The aggregate limit on the Horse and Greyhound Racing Fund was increased in this manner in 2004 and in 2009 to 2021, inclusive.

The 2017 Deloitte report into the economic impact of Irish breeding and racing, commissioned by HRI, indicates that the total direct and stimulated expenditure from the Irish breeding and racing industry is estimated at €1.84 billion in 2016. In addition, it is estimated that there are 15,200 jobs at the core of the racing and breeding industry or in directly related industries. Horse racing helps drive a balanced regional economy. It generates a very significant return to the rural economy in Ireland and a positive international profile for our country. Of course, behind all the facts and figures are the thousands of men and women who directly and indirectly make the Irish racing and breeding industry what it is today.

While the Covid-19 pandemic has had a major impact on all levels of the industry, particularly in attendances at racecourses, the numbers of horses in training, owners, racers, fixtures and races have all shown strong growth over the corresponding pre-pandemic figures for 2019. Figures published by HRI for the first six months of 2021 show that the number of horses in training, which is a key driver of rural employment for the industry, had increased by 24% on the comparable figure for 2019, with ownership up by almost 24% and new owners registered showing a 31% increase on the 2019 figures - all very strong figures. Turnover in 2021 is estimated to reach €154.7 million by the year end, an increase of €48 million on 2020, but down by €10.5 million on the pre-Covid pandemic year of 2019. HRI continues to engage with all racecourses to crystallise the losses incurred during the pandemic.

As proven in 2021 to date, Irish owners, trainers, jockeys and horses are setting standards globally. Their stellar achievements and enduring influence underscore Ireland's international prominence. The Irish equine breeding and racing industry is extremely competitive at a global level, despite other racing nations having much larger populations and economies.

The importance of having a strong welfare and integrity foundation is crucial to this highly successful industry and this is well recognised throughout the industry. My Department and I continue to work with HRI, the Irish Horseracing Regulatory Board and other relevant stakeholders to ensure the highest standards of integrity and welfare are maintained. In that regard, I have received the report of the Oireachtas Joint Committee on Agriculture, Food and Marine on integrity in racing published earlier this month. This followed a series of meetings with this forum involving officials from my Department, HRI, the Irish Horseracing Regulatory Board and the Irish Racehorse Trainers Association over the summer. We are examining that report and I will fully consider its findings shortly. I thank the committee, under the chairmanship of Deputy Cahill, for its work for producing such a comprehensive and important report.

The EU and UK trade and co-operation agreement for Brexit reached in December of last year, which included the Northern Ireland protocol, was a welcome development for all of us. It should be noted that challenges remain with the movement of horses between Ireland and Britain, and between Ireland and mainland Europe for those who are using the land bridge. The global nature of major breeding operations illustrates that while Ireland now arguably holds a leadership role in Europe, its pre-eminence is not guaranteed. According to the 2021 Power report, the greyhound industry provides and supports considerable employment both directly and indirectly across the Irish economy. It is estimated that in 2019, the industry supported more than 4,000 full-time and part-time jobs. In addition, there are more than 6,000 active greyhound owners. The total number of people deriving economic benefit from the sector is estimated at over 10,000. The funding provided to the sector helps sustain a long-standing tradition as the industry as part of the social fabric of the country. This funding underpins the economic activity in what in many instances are highly rural areas.

The future of the industry is dependent on a strong governance platform and on the industry having the highest standards of integrity and welfare founded on a strong regulatory system. There is a strong commitment to improve animal welfare in this sector under the programme for Government. My Department, along with the sector itself, is committed to continuing to strengthen the welfare standards in the greyhound industry and future funding in the sector is contingent on welfare standards being upheld. This is reflected in the annual parameters set out by my officials in their dealings with Rásaíocht Con Éireann. Provisions of the Greyhound Racing Act 2019 came into effect on 28 May of that year and will make a real difference in this regard. This legislation strengthens the legal basis for the industry with a view to fortifying the integrity of the greyhound racing sector and improving provision for greyhound traceability.

The new Act improves governance of Rásaíocht Con Éireann, strengthens regulatory controls in the industry, modernises sanctions and improves integrity within the sector. It provides the industry with the real tools with which it can effect fundamental change and reform.

A key element of the new legislation is the provision for the first time of a full information technology traceability system for racing greyhounds. The Rásaíocht Con Éireann traceability system came into operation on 11 January 2021 and the system provides a mechanism to ensure racing greyhounds are properly registered and traceable throughout their lives. The sections of the Act commenced on 1 October 2020, signalling a new era for greyhound racing. It facilitates the board in focusing on its priority objective, achieving the highest standards of care and welfare for greyhounds.

Further commencement orders to commence the majority of the outstanding sections are currently being drafted. The Greyhound Racing Act 2019, when fully implemented, will enable Rásaíocht Con Éireann to ensure the important heritage associated with greyhound racing in Ireland can continue under the appropriate rules and regulations. The industry is predominantly rural, with a strong urban support base. The Covid-19 crisis has, in a way similar to other sectors in the economy, resulted in a collapse in commercial activity in the sector and a significant reduction in activity generally. Recovery for the industry will require ongoing support to aid the restoration of normal levels of activity.

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