Dáil debates
Thursday, 9 April 2009
Horse and Greyhound Racing Fund Regulations 2009: Motion
2:00 pm
Martin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context
I move:
That Dáil Éireann approves the following order in draft:
Horse and Greyhound Racing Fund Regulations 2009,
a copy of which order was laid before Dáil Éireann on 6 April 2009.
Under section 12 of the Horse and Greyhound Racing Act 2001, the horse and greyhound racing industries receive financial support through the horse and greyhound racing fund. Under the provisions of the Act, the fund has received a guaranteed level of funding each year from 2001 to 2008. In 2004, the Government put in place regulations to increase the limit of the horse and greyhound racing fund from €254 million to €550 million and to continue the fund for a further four years to 2008. By the end of 2008, a total of €545.8 million had been paid out of the fund.
Funding of both the relevant agencies, Horse Racing Ireland and Bord na gCon, supports two productive industries and helps sustain the role of the horse and greyhound breeding and training enterprises in the development of the rural economy. These industries together account for an estimated 27,500 direct jobs, generate substantial economic activity and make a vital contribution to the rural economy, including farm incomes.
The funding being provided to the greyhound racing sector helps sustain a tradition that has existed for hundreds of years. That funding underpins economic activity in regions of the country that are often less affluent. It has also contributed significantly to the sum of almost €90 million that has been invested in the improved facilities now available at greyhound tracks around Ireland. The fund has allowed Ireland to develop into a world centre of excellence for horse and greyhound racing and has allowed Horse Racing Ireland, HRI, to undertake a capital investment programme that has underpinned growth in the sector.
Prior to budget 2009, a review of the fund was under way. As the review had not yet been completed, provision had to be made for the extension of the fund and its subsequent continuation into 2009. The total allocation for the fund for 2009, both current and capital, as provided for in the Horse and Greyhound Racing Act 2001, would have been calculated on the basis of the excise duty on off-course betting in 2000, which was €58.89 million, multiplied by the relevant CPI figures. Taking a figure of 4.5% as an estimate of the annual average CPI for 2008, the 2009 fund allocation would have been €79.72 million. Of this, HRI would have expected to receive €63.78 million and Bord na gCon would have expected to receive €15.94 million. However, in view of the current economic climate, it was decided and announced in budget 2009 on 14 October last that the provision for 2009 would be €55.7 million for HRI and €13.9 million for Bord na gCon, a total of €69.719 million. This represents a reduction of almost 9% on 2008 funding and a reduction of almost 13% on anticipated funding. A further reduction of €91,000 was made in the context of departmental savings in February 2009, bringing the allocation to €69.628 million.
Given concerns about the funding gap between the income generated through duty on off-course betting and the amount of funding stipulated in the Act, it was decided to make changes to the off-course betting tax. In the Finance (No. 2) Act 2008, the tax was increased from 1% to 2% with effect from May 2009. Given recent trends and projections for betting tax receipts in 2008, this will serve to reduce significantly the amount of direct Exchequer subvention required.
The review of the fund is nearing completion and will be submitted to the Government in due course in the context of decision process on the future funding of these industries. In the meantime, so that HRI and Bord na gCon can draw down their allocations in the 2009 Estimates, provision must be made for the extension of the fund and its subsequent continuation during 2009. As I have already stated, an amount of €69.628 million was provided for the fund for 2009 in the Vote of the Minister for Arts, Sport and Tourism. The remaining balance in the fund at the start of 2009 was €4.2 million. Of that, €3.4 million was paid out to HRI and €0.8 million to BNG in February. In order to pay out the balance of €65,407,713 in 2009, the aggregate limit of the fund must be increased by that amount. On 3 March last, the Government agreed to increase the aggregate limit on the horse and greyhound racing fund by €65,407,713, pursuant to the provisions of section 12(5) of the Horse and Greyhound Racing Act 2001. On that basis, the draft regulation considered by the Joint Committee on Arts, Sport, Tourism, Community, Rural and Gaeltacht Affairs provides for an increase of €65,407,713 in the aggregate limit to give an aggregate figure of €615,407,713, which is the cumulative provision for the fund since 2001.
Deputies will be aware of the difficult budgetary situation facing the country. Over the past month, the Government has examined every line of public expenditure by Departments. In finalising the Estimates for my Department for 2009 in preparation for this week's budget, I was obliged to identify additional spending reductions in my Department's Vote. On this basis the Government decided that the horse and greyhound racing fund should be further reduced by €1.5 million. Therefore, the aggregate limit of the fund will be increased by €63,907,713 to €613,907,713, the cumulative provision in the fund since 2001. The level of funding available to these important industries will be €68.128 million, comprising the balance remaining in the fund of €4,220,287 plus €63,907,713 million.
The joint committee considered the proposed regulations yesterday and, following an extensive debate and another debate last week, approved the regulations. Committee members, while supporting the funding the horse and greyhound sectors have received in recent years and realising the importance of its continuation through the horse and greyhound racing fund, raised a number of issues with regard to the level of the fund in the current financial climate and the manner in which it is being spent. In the finalisation of the review of the fund, the issues raised will be fully examined so that when this subject is next considered by the joint committee and the House some of the concerns of members can be addressed.
Section 12(13) of the Horse and Greyhound Racing Act 2001 provides that a draft of these regulations be laid before both Houses of the Oireachtas and a resolution approving the draft be passed by each House before the regulations are made by the Minister. As I mentioned earlier, I will be making a submission to Government regarding the future funding of the industries in due course, but in the meantime I ask Members for their support to ensure that HRI and Bord na gCon can receive their funding provision for 2009 and that the very important role of the industries and, more importantly, the employment supported and economic activity generated is sustained.
Olivia Mitchell (Dublin South, Fine Gael)
Link to this: Individually | In context
We have discussed this matter at some length in the past ten days or so, but I must reiterate Fine Gael's support for the extension of this fund to allow the industry to continue to develop and to bring pride and excellence to Ireland. There is a mistaken impression out there - one must wonder about the source of this, and it may be a deliberate attempt to mislead by vested interests - that the general Exchequer is carrying the entire cost of this fund. That is simply not the case. Even if the levy on the industry remained at 1%, the industry would be contributing half of the fund for the current year. As it is, the levy will be doubled to 2% on 1 May and, at worst, the amount to be borne by the Exchequer will be a small residual amount.
When we discussed this at the Joint Committee on Arts, Sport, Tourism, Community, Rural and Gaeltacht Affairs yesterday, Senator Bradford, who spoke eloquently on the subject, pointed out that the one thing Ireland does well - in fact, the thing at which we are the best in the world - is horses.
Olivia Mitchell (Dublin South, Fine Gael)
Link to this: Individually | In context
We are not so good at so many things - apart from shooting ourselves in the foot, I suppose - that we can afford to ignore an industry in which we are a world leader.
We have discussed what the industry contributes but, in addition, it employs almost 30,000 people directly and many more indirectly. It is a major foreign currency earner and brings in a minimum of 80,000 tourists every year. Ireland is the third biggest exporter of horses, with one in every eight farmers participating in horse breeding. Hundreds of horses are sent here for stud every year. Every trainer has horses from the Middle East and all over the world. Whatever about our recognising that we are world-class, those in other parts of the world recognise that we are the market leader.
Olivia Mitchell (Dublin South, Fine Gael)
Link to this: Individually | In context
We are the best. The value of such a reputation when showcasing Ireland around the world is incalculable. Not to support this industry, and not to seek every possible way to ensure its continuance, would definitely amount to shooting ourselves in the foot. The trouble is that every job, from the farm in Kilkenny to the racecourse at Leopardstown, is sustained by the size of the purse on the racecourse. That is the paymaster for the entire sector through the chain of activities. If the prize is not attractive enough, there is no reason to raise a horse, much less to breed or train it, and the industry will ultimately die. No venue is in a position to provide solely from gate receipts the type of prize money that will sustain such expensive and risky undertakings. Other countries recognise this and support the industry through a levy on betting. It was folly to reduce the levy in this State in recent years. There must be a rapid return to a situation where the industry levy fully funds horse and greyhound racing. That is what the industry and taxpayers want.
There has been significant growth in Internet betting and the use of offshore servers. We must seek with all speed and ingenuity to capture some of that levy. The providers of offshore services are gaining at the expense of the ordinary bookmaker. However, the reality is that ordinary bookmakers are still taking in some €3.5 billion in turnover, which means there is potential for the industry to be self-sustaining. Bookmakers are piggybacking on an investment made by others. It is only right that they should make a contribution to the industry that gives them a lucrative reason for being.
It is incorrect and damaging to the industry and to the jobs it sustains to suggest that the small amount the Exchequer will contribute this year in supplementing the fund comes at the expense of other sports. This is not true except in so far as every cent spent for any purpose is at the expense of something else. One could argue that money given to the IDA, for cystic fibrosis services or for the provision of schools is given at the expense of sport. However, nobody is suggesting we should throw all those services to the wind. Nevertheless, just because this argument is inaccurate does not mean it is not persuasive, which is why it is being used by some to pursue a particular agenda.
I have suggested on several occasions that the allocation to the fund should not appear in the Department's accounts under the sports heading but should instead be included under tourism, for example. There must be a recognition of the importance of the jobs provided by the industry. The reason for supporting it is the jobs it provides. It is vital to our economy, both urban and rural, and a major employer in a variety of sectors across the continuum from production of animal feed to tourism in Leopardstown. Fine Gael is determined to support the industry.
Mary Upton (Dublin South Central, Labour)
Link to this: Individually | In context
I propose to share time with Deputy Ferris.
Noel O'Flynn (Cork North Central, Fianna Fail)
Link to this: Individually | In context
Is that agreed? Agreed.
Mary Upton (Dublin South Central, Labour)
Link to this: Individually | In context
The Minister agreed to this debate following the discussions that took place at a meeting of the Joint Committee on Arts, Sport, Tourism, Community, Rural and Gaeltacht Affairs. There is no doubt that the provision of a horse and greyhound racing fund has facilitated the development of a world class industry that supports the rural economy.
I disagree with those who contend it is a sport for the elite. Throughout the State, many small industries are working hard to retain staff and keep their businesses going. That is particularly the case in the horse industry. Small rural towns located near stables will stand to benefit from the knock-on effects of developments in the industry. It is also important to recognise the value of the greyhound industry both from an economic point of view, in terms of the substantial number of jobs it provides, and also as a sporting activity. While the provision of funding is 80:20 in favour of horse racing, the greyhound industry is of importance to many.
The Minister may have noted that I have referred to the horse racing and greyhound racing "industries". As such, it would make sense that they come under the remit of the Department of Agriculture, Fisheries and Food or the Department of Enterprise, Trade and Employment rather than the Department of Arts, Sport and Tourism. While I recognise their value from a tourism and sporting perspective, our discussion of them always takes place in the context of industry. We have referred to this on previous occasions and the Minister has responded to a certain extent.
My concern in regard to funding relates to the Act which established the horse and greyhound racing fund in 2001. The decision to establish the fund was correct, being an attempt to tackle the economic free rider principle that had beset the industry for decades, whereby its most successful commercial product, gambling, did not contribute. Bookmakers should contribute to the sports that have helped them establish themselves both nationally and internationally. However, the major flaw in the legislation was that the level of funding was benchmarked to betting levy receipts for 2000 and subsequently benchmarked against the consumer price index. Where there was a shortfall in funding, this was to be subvented by direct Exchequer funding. This is at the heart of the problem. The reductions in the betting levy from 5% to 2% to 1% meant this shortfall did not take long to materialise. As a result, in 2007, the Exchequer contributed almost €40 million more than was collected in betting levies. This is where the anomaly lies.
The Labour Party is acutely aware of the need to retain jobs. Given that this is an indigenous industry, it is perhaps even more important that we examine it clinically when we consider the issues relating to the retention of jobs. However, we cannot continue to have a situation where the direct Exchequer funding is of such a high level. In his Budget Statement in October, the Minister indicated his intention to double the betting tax to 2%. This will not cover the entire shortfall but it will go some way toward that objective. When will this tax increase be implemented? It cannot be put on the back foot and we must know for certain that it will be introduced.
Martin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context
To clarify, as I said in my speech, this change will be implemented on 1 May.
3:00 pm
Mary Upton (Dublin South Central, Labour)
Link to this: Individually | In context
There must be certainty that this vital measure will be taken.
The entire industry is in need of reform. Much of the money from horse racing goes directly into prize money. I have no difficulty with this principle. It is important that prize funds are sufficiently substantial to attract the big players. However, we are seriously out of kilter in this regard with our nearest neighbours in the United Kingdom, which is something the horse racing industry must examine. In a recession, current levels of prize money are not sustainable.
An issue that sometimes irritates people is that much of the prize money ends up in the hands of relatively few people, some of whom reside outside the country and are not caught up in any way in our tax net. In a recent analysis of the industry, commentators failed to explain why a State subvention is needed to support the fund. The reason is that the largest bookmaking operators have migrated their industries offshore for tax purposes. We discussed this issue at the committee meeting. It is rich of them to complain about the subvention to the horse and greyhound racing fund when they benefit so much from the industry but pay no betting taxes or levies on their profits. I appreciate the difficulties in restoring some part of these revenues to the State but it is an issue that must be addressed. If all the major players were to pay a 1% betting tax on all bets placed in the State, whether on the main street, via telephone or the Internet, we would have more than enough money to support the horse and greyhound racing fund and plenty of money for the development of other sports. The other anomaly is that the horse and greyhound racing fund is under the aegis of the Department of Arts, Sport and Tourism, while other sports are not being supported in the way they could and should be.
The Labour Party strongly supports the racing industry. However, in light of the economic situation - with massive cuts in sports funding, the failure of the Government to support industries such as SR Technics and the various cutbacks announced in the budget this week - we have serious reservations about the management and distribution of this funding. We are aware of the need to support the industry. In particular, we support the retention of jobs.
Martin Ferris (Kerry North, Sinn Fein)
Link to this: Individually | In context
I thank the Labour Party for sharing two minutes of its time with me.
Coming from an area in north Kerry hugely involved in the greyhound industry, I am acutely aware of the value of the industry locally and nationally. I do not believe anyone could deny the value of the horse and greyhound sector to this country. Thousands of people are employed in the industry which generates a significant part of national income and revenue intake. There are, therefore, good grounds for channelling revenue from betting to support both sports.
It is also the case, however, that other sports have been subject to massive cuts this year. I refer in particular to the scrapping of the sports capital fund for 2009 which has deprived many sports clubs involved in a wide range of sports of vital funding. It is ironic that a Government whose members are falling over themselves to be seen with boxers who won Olympic gold medals is not doing its level best to ensure that clubs like St. Xavier's and others will have the facilitates to cater for all the young people inspired by Darren Sutherland and Kenny Egan.
I suggest - unfortunately it is not possible to do so by way of an amendment - that part of the money accrued to this fund through betting tax be used to revive the sports capital fund and that the Government make up the shortfall to ensure a fund of at least €50 million. The sports capital fund has proved invaluable to small clubs throughout the country. Given that there is within the horse and greyhound industry a sector addicted to gambling, some money should be provided to assist such people.
While greyhound and horse racing tracks, which are the centre of so many domestic jobs, should not be at a loss, a case can be made in regard to public support for the big prize money events in horse racing, in particular when much of that prize money is won by people who are not resident here, some of whom, ironically, are Irish citizens but do not pay tax. There is no reason that the rest of us should contribute to increase their incomes. In light of the attack on the livelihood's of ordinary people, the Government needs to take a closer look at this fund and to ensure resources from those who do not need it at the top end of the racing and local sports clubs is reallocated to the sports capital fund. At the same time, we must ensure that the requirements of tracks and stadiums around the country are maintained in order to sustain many jobs connected with the industry.
John O'Mahony (Mayo, Fine Gael)
Link to this: Individually | In context
I wish to share time with Deputies Deenihan and Barrett. I would like to put on the record of the House, as articulated by Deputy Olivia Mitchell, Fine Gael's support for the horse and greyhound industry which provides 30,000 jobs and deserves funding and support. I am aware it has received more than €500 million in funding in this decade alone.
My concern arises from a response to a question I tabled some months ago to which the Minister replied that no new applications had been taken for sports capital funding in 2009. The Minister mentioned yesterday in committee that some projects would commence this year. In this regard, I assume he was referring - I do not wish to be splitting hairs - to projects approved in 2007 or 2008. The perception out there - I have experienced this reaction even since the decision was first announced at committee last week - among the sporting organisations is that other sports are being treated unfairly and that the horse and greyhound industry is, in some way, being supported at the expense of other sports, which I understand.
I said yesterday and say again today that not enough was done in the budget to support jobs and we must support these jobs. There is a need for support for the horse and greyhound industry within the Department of Agriculture, Fisheries and Food as I believe it is in its interest that sporting organisations are not at each other's throats. Other sporting institutions such as the GAA and those representing team sports such as rugby and soccer could also say they provided billions in revenue to the Exchequer. It is in everybody's interest that the message goes out that what we are doing is supporting an industry not a sport. The horse and greyhound industry is on record as saying that it does not want to depend on Exchequer funding. I look forward to publication of the review this summer which it is hoped will articulate the ways in which this is done. I support the view of other Members that sport is needed now more than ever and must be supported.
Jimmy Deenihan (Kerry North, Fine Gael)
Link to this: Individually | In context
Following on from Deputy O'Mahony, I suggest that the horse and greyhound industry be returned to the remit of the Department of Agriculture, Fisheries and Food. I was Minister for State with responsibility for the greyhound industry in 1994. I would like to correct the statement made yesterday by the Minister that everything began to happen in the industry when it was brought within the remit of the Department of Arts, Sport and Tourism. It began long before then.
Martin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context
I was speaking about the fund.
Jimmy Deenihan (Kerry North, Fine Gael)
Link to this: Individually | In context
The fund was established by the Minister for Agriculture, Fisheries and Food in 2001. I have nothing against the Minister's Department; it is a good Department. I do not believe it fair that we should enter into a major debate in regard to sports funding and support for the horse and greyhound industry.
Jimmy Deenihan (Kerry North, Fine Gael)
Link to this: Individually | In context
The whole debate has been distorted and manipulated. The greyhound industry is the lifeline and life blood of my constituency, particularly given the decline in agriculture. A great number of people are dependent on greyhound breeding, training and the care of greyhounds. The greyhound industry in Tralee has provided more money for Kerry General Hospital than has the Health Service Executive. All of the major equipment in that hospital has been purchased from funding raised at the Tralee track. In 2007, charities obtained approximately €9 million from greyhound tracks around the country. Tralee track is a good example in this regard. To affect this fund is to affect the potential of this type of input for charities.
In all major racing nations, the industry is funded from betting duties. The horse racing fund when established in 2002 was fully financed from betting duties. In the intervening period, while off-course betting has increased from €1.36 billion to €5.5 billion, the tax take has decreased from €68 million to €37 million, requiring the Exchequer to make up the shortfall. This has arisen owing to a series of reductions in the rate of betting duty from 5% to 1% and the emergence of off-shore telephone and Internet betting, which now accounts for almost half the turnover of Ireland's leading bookmakers and which escapes the taxation net. Deputy Barrett is an expert in this area and I am sure he will deal with this issue in his contribution.
The industry depends on the input of bookmakers and people who bet. It is unpatriotic of those people to evade paying tax.
Jimmy Deenihan (Kerry North, Fine Gael)
Link to this: Individually | In context
If they do not support the industry, they will having nothing to bet on in the future. If people pay their taxes rather than availing of schemes to evade paying it, we would have plenty of money for the horse and greyhound industry. As Deputy Mitchell said, we have achieved a great deal as a nation but we could achieve even more if we put more money into breeding. We could even introduce a national breeding policy and, perhaps, get involved in sports horses given the decline in our bloodlines. We support the motion and look forward to moving responsibility for the horse and greyhound industry to the Department of Agriculture, Fisheries and Food.
Seán Barrett (Dún Laoghaire, Fine Gael)
Link to this: Individually | In context
I join with other Members in seeking to quell the misconception that the taxpayer is subsidising the horse and greyhound industry, both of which, as has already been stated, employ in the region of 29,000 to 30,000 people. That is the reality.
Seán Barrett (Dún Laoghaire, Fine Gael)
Link to this: Individually | In context
Yes. Prize money in racing meets only a small part of the cost of maintaining a horse. Since the introduction of this levy and this fund, the number of horses in training has increased by 41%. In other words, more people than ever before are employed in training centres. There has been an increase of 41% since 2000.
Seán Barrett (Dún Laoghaire, Fine Gael)
Link to this: Individually | In context
Some 85% of the thoroughbreds that are bred in this country are exported. That brings a substantial amount of money into this country. We should not focus on the fact that people like the Maktoums, the Aga Khan and John Magnier may be based off shore. They have significant enterprises in this country. They provide large-scale employment and pay a great deal of tax. It should be recognised that we live in a European Union of 27 member states. People are entitled to live in any part of the 27 member states, as they wish. All that matters is that their enterprises here are providing employment. The people I have mentioned are providing large-scale employment in parts of the country that need it. They are contributing to the Irish economy through those jobs.
It is up to the Members of this House to deal with the issue of the lack of control of offshore and on-line betting. The United States has dealt with it by banning the use of credit cards for betting purposes. One cannot engage in on-line betting unless one uses one's credit card. If those involved in such activities are not prepared to contribute to the fund, I will propose the introduction of a similar ban here. In the US, Japan and France, the racing industry owns its own gambling product and all profits come back into the industry. In Australia, all off-course betting is controlled by state-licensed tote betting. The only people who have to contribute to the levy are on-course bookmakers. Ireland and Britain are unique in that we have given many people licences to make substantial profits without expecting them to contribute to a fund that supports those who own, train and ride horses and those who own racecourses. I have no sympathy for bookmakers who moan and groan about the 2% levy. Incidentally, it does not come out of their pockets - they can build it into the odds they lay. If they can deduct 5% of on-line bets for themselves, they can deduct 2% for the levy just as easily. If we had such a system, there would be no suggestion that the taxpayer funds racing. The taxpayer does not fund the racing industry. It is funded from a levy, as it should be. Nobody in the horse racing, bloodstock or greyhound racing industries wants taxpayers to put their hands in their pockets to provide prize money.
We should go a little further. The Exchequer funds generated by the racing industry, for example through employment, far exceed the State moneys that go into the industry. Many other industries get all sorts of State support. The horse racing industry does not get grants from Europe or anywhere else. The Curragh racecourse in County Kildare, which is represented by Deputy Stagg, is a perfect example of the magnificent establishments I am talking about. I hope it will soon be the greatest example of a racecourse in Ireland. It will bring in a significant amount of money. Somebody told me recently that the Galway and Punchestown racing festivals are worth a combined €105 million to their local economies.
Seán Barrett (Dún Laoghaire, Fine Gael)
Link to this: Individually | In context
Deputies should reflect on the tax receipts that accrue from €105 million. Those who write about this sort of thing should be honest and give proper information to the public.
I am pleased with this proposal. I hope all parties in the House will support it, in the interests of this important industry. We should get real. We should stop slagging people like William Hafner, the Maktoums and John Magnier, who supply a great deal of employment in this country, just because they do not live here. That is not my business. I am interested in people who want to invest in Ireland. We do not ask Mr. Dell if he wants to live in Ireland - we are happy if people like him bring industry to this country. If people provide jobs and pay their corporation taxes here, I am delighted to see them - they are very welcome. Those who create jobs and develop enterprises here should be supported.
Lucinda Creighton (Dublin South East, Fine Gael)
Link to this: Individually | In context
I echo much of what the previous speakers, including Deputies Barrett and Mitchell, have said. We have to put this in context. We have been debating the supplementary budget for the last few days. We all acknowledge that Ireland is in an economic crisis. The level of ill-informed debate about the racing, thoroughbred and greyhound industries is extraordinary. This is a hugely important debate in the context of the economic crisis. As Deputy Barrett pointed out, the thoroughbred industry is entirely surrounded by misconceptions. The horse racing industry in this country contributes massively to the Irish economy. At least 20,000 people are directly employed in the thoroughbred industry, without reference to sport horses or any of the rest of it. That is probably a conservative estimate - it could be argued that there are more employees in the industry.
The level of indirect employment that is generated by the thoroughbred industry is also massive. I refer to people who produce and supply feed, hay, straw, leather goods and horse boxes, as well as those who construct stables, yards and the new types of gallops found in training yards. We have to face up to the fact that tens of thousands, if not hundreds of thousands, of jobs are indirectly supported by this massively important industry.
Deputy Barrett highlighted the benefits of race days for local economies. The employment that is generated by the thoroughbred industry is not just day-to-day, or week-to-week. Many of the horse racing festivals throughout the country are growing and have significant potential to attract tourists to this country. Festivals like those in Punchestown and Galway generate periodic employment and facilitate investment in local economies. While some of the smaller festivals that take place four or five times a year might not generate €100 million, their importance for local economies should not be under-estimated. It is bizarre that they are being ignored in this debate. We need to showcase this important industry. I am sorry that the development of a new stand at the Curragh is no longer being considered. Such projects are needed if we are to show the world that Ireland has a first-class horse racing industry. If one looks at the Olympic Games, for example, it is evident that Ireland does not rate as highly in any other sport as we do in horse racing. That is a fact.
Deputy Deenihan referred to the sport horse industry, which is very dear to my heart as I was involved in it for many years. It has been abandoned by Government policy over the last 30 years. We used to have the best sport horses in the world. The top ten always used to include a number of Irish-bred horses. A lack of foresight has allowed that to dissipate completely. We need to decide whether we want to turn our banks on the thoroughbred industry, to make the same mistakes and to fail to support this industry. We used to be the best country in the world in terms of horse breeding and production, but we are now turning our backs on the direct and indirect employment associated with it, which is extraordinary.
The notion that taxpayers are subsidising an industry that is dominated by extremely wealthy elites is a myth. Nothing could be further from the truth. Anybody who has any understanding of rural life in this country will be aware of the importance of the horse industry. As others have pointed out, the horse and greyhound racing fund is almost entirely funded from the betting levy. This industry is more than an economic activity in rural areas - it is a way of life in. Many farmers take a brood mare or two to stallion every year. They get a little supplementary income from the breeding of foals. I fail to understand what is wrong with that. This is a sport that, by and large, is run by ordinary hardworking honest to goodness people. It is not the preserve of kings as some would have us believe.
We value very highly the jobs created by multinational corporations in this country. Rightly, there was an outcry about Dell when over 2,000 jobs were lost yet here we are talking about an indigenous industry that creates almost 20,000 direct jobs. How can we place a lesser value on our own domestic jobs in this country? They seem to be reduced somehow and deemed less important than those created by foreign investors. I do not accept that in any shape or form.
This industry is the lifeblood of rural communities. On a smaller scale, the greyhound industry is very important to rural communities and to people in towns and villages around the country who might have a couple of dogs. Their big social outlet, at minimal cost, once or twice a week or month, is to go to the local dog track. There has been wonderful investment here.
Lucinda Creighton (Dublin South East, Fine Gael)
Link to this: Individually | In context
I know this because I worked at dog tracks when I was young. My father is a bookie and I used to go to Mullingar, Longford, Galway among others. The standard of the improvements is fantastic, to take Shelbourne Park, for example.
Lucinda Creighton (Dublin South East, Fine Gael)
Link to this: Individually | In context
It is great and is a brilliant social outlet for people. Now in particular, when people will be unable to afford to go to Marbella, or take their ski holidays, or go away three or four times a year, they will look for a social outlet. What is so wrong with going to the dogs for a night, or going to the races on a Sunday afternoon? It is a fantastic way for Irish people to spend their spare time. It is a domestic investment in the country and in an industry at which we excel. We are the best in the world and we should be proud of this and shout it from rooftops instead of being afraid to be associated with horse racing and the greyhound industry.
Mary Upton (Dublin South Central, Labour)
Link to this: Individually | In context
I have one small point to make, namely, that the industry is not being funded from the resources that were originally intended for it. That is my only comment.
Joe Behan (Wicklow, Independent)
Link to this: Individually | In context
I thank the Acting Chairman for allowing me the opportunity to make a brief comment.
I have no difficulty agreeing with the general sentiments expressed here today. I wish to make a plea on behalf of the small independent bookmakers and perhaps the Minister might comment on it. They are currently competing against some of the major bookmakers and this is one of the difficulties with the betting tax, as I understand it. A woman contacted me from a rural town in my constituency on this issue.
My understanding is that the major bookmakers are absorbing the 1% levy, soon to be 2%, by paying it on behalf of their customers. Small bookmakers are not able to compete on that kind of playing pitch. In my constituency there is at least one bookmaker who will close down if the 2% levy is introduced, with a loss of five jobs in a small rural town. That person contacted me and asked me to make this plea to the Minister. Perhaps he might examine whether there is unfair competition. Some of the major multinational companies, because of their activities on the Internet, are able to fund the price of the levy in their betting shops in this country. That is unfair. The Minister might make reference to this situation when he makes his concluding comments.
Noel O'Flynn (Cork North Central, Fianna Fail)
Link to this: Individually | In context
Does Deputy Hayes wish to contribute?
Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context
I certainly do. I did not realise-----
Martin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context
Coming from the south east.
Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context
-----there was time available on this topic. I am pleased to have the opportunity to say a few words on this very important issue. The Minister mentioned the south east where the industry is a significant employer. Nationally, over 30,000 people are employed in the horse business, from animal and foal production to the maintenance and breaking of animals, racing and all aspects of the industry. The industry is hugely underestimated in respect of the numbers of people it employs and now we have the opportunity to talk about it.
It is important to note there are issues which may be misrepresented. There is a belief that people in the horse industry pay no tax. I heard people in recent days claiming that nobody in the industry pays tax. It is crazy. People who should be in the know, who should know better, must state that everybody in this industry, farriers, vets, farmers, jockeys - a group we must admire - is paying tax and working very hard. I live in a centre where many of these people operate and they are the most committed and dedicated people in any business or sport.
We should talk up this industry. There is another aspect to it. At a time when the economy is going through great difficulty and people will not have as much money as before to go on holidays all over the world, there are a great number of race meetings that people can enjoy, and holiday festivals in counties Cork, Kerry, Galway. There is Tramore, of course.
Martin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context
There are point-to-points.
Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context
There are others such as Punchestown.
Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context
There are festivals all over the place. I am really pleased that people know these exist. We should promote them. I say to those who own and run the race tracks to make sure the entry fee is kept low-----
Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context
-----to allow younger people, in particular, to attend. Gambling is going on and there is a compulsion about it among younger people. However, on the race course it is regulated and that is the place to go, whether for horse racing or for dogs.
I am conscious that the Minister is very anxious to speak but this industry needs to be protected. It is a good industry and we have the wrong impression about it. We should be proud of it. I live in the heart of it and I am proud of every person who works in the industry. We should talk it up at a time when the economy is going through difficulty.
Martin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context
I thank Deputies on all sides of the House for what has been a very good debate. Much knowledge was brought to the House. I particularly appreciate the spokespersons from Fine Gael and the Labour Party for the manner in which they presented their support today, and colleagues who contributed on all sides. It was important that a clear unequivocal message should go out from this House to those who have an agenda to undermine the industry. It is extraordinary to hear some of the commentary made outside the House about one of the greatest indigenous industries in the country, in which we are world leaders. I appreciate all that was said and the support for the fund.
Concerning the Vote, we removed the horse and greyhound racing fund in order to highlight it and it now has its own subhead rather than being placed under the sports heading.
Olivia Mitchell (Dublin South, Fine Gael)
Link to this: Individually | In context
Is it presented that way in the new budget?
Martin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context
Yes, it is presented now under its own heading, the Horse and Greyhound Racing Fund.
I listened to the debate on agriculture but the synergies being developed in the tourism sector are having a considerable effect. A tourism package was created last year by the greyhound industry which flew in several thousand people from France. It organised a specific dog weekend aimed at the French market. This was a great success and the project is to be expanded this year to include Austria, Germany, Spain and Italy. The tote was started up in Sweden and the greyhound sector generated €0.5 million last year. That expansion is being examined. There are many synergies at work here and the industry has much prominence now in the Department. We should not be guided by the current debate as to where the industry's future might lie. Those might be arguments for another day.
I would not undermine what is being achieved, not because I am the Minister in charge but, as Deputy Deenihan said, what we built up in recent years and the potential it has are factors that have a strong primacy right now. Perhaps if it was reduced this might not be the case. I do not mean that people would not care but it has a stronger remit in its present position. It is an important element within the Department.
Deputy Behan made an argument for the small bookmakers. Deputy Barrett captured it very well too and I have spoken on the matter myself recently, as have Deputies Mitchell and Upton. We all agree that the industry as a whole must contribute. The grievance is obvious. Some people are making considerable profits from the industry but they are killing many aspects of it and make no contribution. They are making no contribution but are reaping the rewards of the most successful racing industry in the world. I am no expert and I am sure Deputy Barrett knows much more than I do. Some people refer to English racing being much cheaper. English racing is in considerable trouble. They are all coming to Ireland to race. One of the reasons is that Ireland is successful - we have done the right thing. While many of the prize funds are relatively small, they keep horses in training and small farmers in the business. People should not forget that. That is why Irish racing is far more successful than English racing today. People like the Maktoums are not dependent on the prize money going into point-to-point racing or even some of the bigger races. There are only one or two huge money races and even they would not keep them going. They are in it for other reasons. However, the money generally goes right across the spectrum.
Horse breeding was mentioned earlier. It is ironic in some respects that some of the most successful horses in international show jumping and eventing are Irish bred but are not being ridden from Ireland. They are being bought up by Germans, Brazilians and others. The breeding lines are very good in terms of the production of Irish horses.
Lucinda Creighton (Dublin South East, Fine Gael)
Link to this: Individually | In context
That is not true.
Martin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context
Regarding our international show jumpers there is an anomaly with regard to what Irish horses are bred for. I attended the Olympic Games at which the gold and bronze medal winners were Irish bred. Two or three of the team horses were Irish bred. I was astonished at the amount of Irish bred horses. It has come to my attention - it is pretty bizarre - that there is an issue regarding what is happening in that area; I will discuss that with the Deputy. It is something about which I would like to try to do something. I thank Deputies on all sides.