Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

I did not hear the Deputy mention once in his contribution the valuable contribution that the thoroughbred and horse racing sectors make to our national economy or indeed the fact that it supports 29,000 jobs across the country and underpins a thoroughbred industry that has an annual economic impact of €1.84 billion. I did not hear him mention that once and I do not think that is something he is too concerned about either. It is one of the sectors and industries in which Ireland is a true global leader. The broad geographic distribution of this industry contributes to the achievement of more balanced regional economic growth and rural economic activity, providing a wide range of employment and income opportunities from stable staff to trainers to jockeys to breeders and farmers.

The support provided by public funds through investment in the industry has enabled Ireland to develop a world-class reputation for excellence in horse racing and breeding. The Irish thoroughbred breeding industry is extremely competitive at a global level. We are the second largest producer of bloodstock in world by value sold after the USA. Ireland has the world’s third highest number of thoroughbreds foaled each year after the USA and Australia.

Successive Governments have acknowledged the importance of this industry and supported it. Horse Racing Ireland, established under the Horse and Greyhound Racing Act 2001, a commercial State body, is responsible for overall administration, promotion and development of the industry. The horse and greyhound racing industries receive financial support through the Horse and Greyhound Fund. My Department makes payments through HRI and Rásaíocht Con Éireann.

On the current expenditure allocation, no more than 80% is to be applied to prize money. In 2020, €67 million was allocated to HRI from the fund and €76 million last year. In 2020, €54 million of the HRI allocation was assigned for current expenditure. The total prize money paid out in horse racing for 2020 was some €51.5 million, of which HRI contributed €35 million, or 68%. Private sponsorship of prize money was some €16.3 million, of which race horse owners themselves contributed some €11.7 million with the balance of private sponsorship contributed by corporate bodies.

The HRI factbook for 2021 shows that there were 394 fixtures, with 8,700 individual runners and 25% of these horses winning at least one race. More than 6,000 of the individual runners won prize money at some stage, which equates to around 69% of individual runners.

We are not outliers in this space. The support provided by public funds through investment in this industry has enabled us to develop a world-class reputation for excellence in horse racing and breeding. Horse racing in other major jurisdictions is also funded by government, either directly or indirectly. Ireland’s racing industry obviously is in direct competition with Britain, France, Australia, America and Hong Kong, for example. The global nature of the racing and breeding industry means that these countries compete for the same pool of foreign direct investment, which ultimately fuels horses and training and therefore employment. In France, there is approximately €400 million in government support per annum. In Hong Kong, the state supports are approximately €800 million per annum. In Australia, returns to racing differ from state to state, however, in the state of Victoria, for example, this amounted to the equivalent of €251 million in revenue in the years 2020 and 2021.

The owners of race horses who earn prize money are not subject to taxation in respect of this income. Race horse trainers and jockeys, however, are subject to taxation. There is no revelation in that our horse racing and thoroughbred sectors are truly world class. To conclude, we perform way beyond our size and scale. This is a sector that supports thousands of jobs in rural parishes across the country and is one that we should definitely support.

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