Alan Shatter (Dublin South, Fine Gael)
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Question 10: To ask the Minister for Arts, Sport and Tourism the plans he has to extend the Horse and Greyhound Racing Fund; and if he will make a statement on the matter. [31519/07]

Séamus Brennan (Dublin South, Fianna Fail)
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Government support for the horse and greyhound racing industries is provided under the Horse and Greyhound Racing Fund, which was established under the Horse and Greyhound Racing Act 2001 for the purpose of further developing both racing industries. Under the provisions of the 2001 Act, the fund receives a guaranteed level of finance based on excise duty on off-course betting in the preceding year, subject to a minimum level based on the 2000 amount adjusted for inflation. Any shortfall in the amount generated by the excise duty is made up by direct Exchequer subvention.

In 2004, the Government agreed to increase the aggregate limit on the fund from €254 million to €550 million, to allow for continuation of the fund for a further four-year period to 2008. Since 2001, this fund has provided a guaranteed level of funding to Horse Racing Ireland, HRI, and Bord na gCon, which, by the end of 2007, will have amounted to over €375 million and almost €94 million respectively. In 2007, HRI has received more than €58 million and Bord na gCon has received over €14 million. Since the establishment of the fund, a major period of development of both the horse and greyhound racing industries has resulted.

This funding has allowed Ireland to develop into a world centre of excellence for horse racing. Horse Racing Ireland has undertaken a capital investment programme that has underpinned growth in the sector. In 2004, HRI launched a €250 million capital development fund for Irish racecourses, which is being spent over five years, to continue the substantial upgrading of racecourses. HRI will provide up to €150 million in grant aid and the racecourses will finance the balance from their own resources.

The fund has also contributed significantly to the almost €90 million that has been invested in the improved facilities now available at greyhound tracks around Ireland. The allocation of €70 million under the new national development plan for capital investment for the horse and greyhound racing industries will assist long-term planning, which will result in the further development of a network of modern well-managed facilities that will continue to be attractive to the public.

To date the fund has not only helped towards providing some top class racing venues and facilities, but it has also underpinned significant employment in both industries. The prize money it has facilitated has been an important boost for both horse and greyhound breeding, which are significant net contributors to the economy and have an important role to play in generating employment, particularly in the tourism and agri-economy sectors, making it a significant regional employer and an important contributor to rural communities.

The current round of the fund is due to expire at the end of 2008. A review of the Horse and Greyhound Racing Fund will be undertaken in the coming year and any extension of the fund will require the approval of the Government and the Oireachtas.

Olivia Mitchell (Dublin South, Fine Gael)
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I thank the Minister, who has partially answered my question. When the funding arrangement runs out next year, would an extension to either the date or the funding cap level be effected by regulation or would it require primary legislation?

My second question pertains to the ending of the stallion regime, which I understand will expire in August. I am aware its abolition was due to pressure from the EU and from the Irish trade union movement. It is easy to dismiss this issue as being unimportant because horse breeding is considered to be the preserve of the very rich, although I am unsure whether this is the case. However, this industry is extremely valuable to Ireland and, over the years, we have developed a tremendous reputation in this regard. Certainly, Ireland is the leading horse breeder in Europe. Other countries against which we compete, such as Australia and the United States in Kentucky, have extremely generous incentive schemes. In that context, is the Minister open to replacing the stallion scheme with a measure to ensure that we will maintain our position and status in the world?

John O'Donoghue (Kerry South, Ceann Comhairle)
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The stallion scheme is a matter for the Ministers for Agriculture, Fisheries and Food and Finance and is not a matter for the Minister for Arts, Sport and Tourism.

Olivia Mitchell (Dublin South, Fine Gael)
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Perhaps the Ceann Comhairle was not listening to the question. I asked whether the Minister was open to other kinds of incentives and aids. They do not have to be tax incentives. I accept the tax incentive has gone.

John O'Donoghue (Kerry South, Ceann Comhairle)
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I assure the Deputy that the breeding issue is a matter for the Minister for Agriculture, Fisheries and Food and she is discussing breeding.

Olivia Mitchell (Dublin South, Fine Gael)
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However, tourism is also involved in this case.

John O'Donoghue (Kerry South, Ceann Comhairle)
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The Minister may reply if he wishes.

Séamus Brennan (Dublin South, Fianna Fail)
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As I noted in my reply on the current round of the fund, this statutory fund has been of enormous benefit to both industries. The fact that it is on a statutory basis and is ring-fenced in that fashion has made it enormously successful. In the normal course of events, the current round of the fund is due to expire in 2008. A review of that fund will now be undertaken in the course of the year. It is well known that any extension of the fund will require the approval of the House.

Olivia Mitchell (Dublin South, Fine Gael)
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Will it require legislation?

Séamus Brennan (Dublin South, Fianna Fail)
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Yes.

Olivia Mitchell (Dublin South, Fine Gael)
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It will require primary legislation. Has the Minister a view on the tourism potential of the horse racing industry?

Séamus Brennan (Dublin South, Fianna Fail)
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What is the Deputy's question?

Olivia Mitchell (Dublin South, Fine Gael)
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I refer to the need to ensure that Ireland maintains its position and the reputation it has built up over many years and on which much money was spent.

Séamus Brennan (Dublin South, Fianna Fail)
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I refer to the figures I provided regarding the hundreds of millions of euro that are associated with the industry, as well as the employment levels. For example, 16,500 people are employed in the horse industry, as well as almost 11,000 people on the dog racing side. In addition, between 80,000 to 90,000 tourist visits are involved. Consequently, it is clear that the scheme has been operating highly successfully. However, this does not detract from the Government's requirement to review it next year and to bring forward any necessary legislation before the Oireachtas in due course.

Seán Barrett (Dún Laoghaire, Fine Gael)
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I concur with my colleague, Deputy Olivia Mitchell. This is of tremendous importance to the entire industry and those involved in establishing this scheme must be congratulated because it has done a power of good for the image of Irish racing and the associated industry. Does the Minister agree there is much misinformed comment regarding rich people receiving money? This measure protects employment in areas where it would not exist otherwise. I refer to rural areas in particular. This industry is highly mobile and the fear is always that unless one can retain one's stallions in Ireland, the mares will not be brought into the country. Consequently, this industry could be destroyed overnight. As both the racing industry and the breeding industry are important, I urge the Minister to ensure the renewal of this scheme. As Deputy Mitchell has suggested, other schemes should be considered to ensure that our breeding industry is not affected in any way.

Séamus Brennan (Dublin South, Fianna Fail)
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I share the view that this is a major industry, which in many ways is unique to Ireland because of our association with the horse and greyhound industries. Whatever is done, care should be taken to ensure that its success will be enhanced and one should not do anything that would take from it. It has been an enormously successful story for Ireland and is one on which we should build. Nevertheless, this does not detract from the Government's obligation to review constantly legislation, which we also must do in this case.

John O'Donoghue (Kerry South, Ceann Comhairle)
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I should have called Deputy Upton earlier. I apologise.

Mary Upton (Dublin South Central, Labour)
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I thank the Ceann Comhairle. While I appreciate the value and importance of the horse breeding and horse racing industry, lest the greyhounds feel somewhat neglected on this issue——

Seán Barrett (Dún Laoghaire, Fine Gael)
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I agree with Deputy Upton.

Olivia Mitchell (Dublin South, Fine Gael)
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They are highly sensitive.

Mary Upton (Dublin South Central, Labour)
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—— the Minister should comment on the greyhound industry. A major social agenda has developed around greyhound racing, which is also highly important. There are some excellent greyhound tracks in Dublin and around the country in locations such as Cork and Galway. I have visited each of the aforementioned tracks fairly recently. It is important to recognise that, to a great extent, this is a developing industry and resources should also be committed to it.

Séamus Brennan (Dublin South, Fianna Fail)
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As I noted, more than 11,000 people are employed either directly or indirectly in the greyhound sector, which is highly significant. The Deputy is correct to suggest that apart from its intrinsic value, greyhound racing has become a major tourism and social attraction nationwide. It is a good way for everyone to enjoy themselves, perhaps as an alternative to the traditional couple of hours in the pub.