Dáil debates

Wednesday, 21 October 2009

3:00 pm

Photo of John DeasyJohn Deasy (Waterford, Fine Gael)
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Question 102: To ask the Minister for Arts, Sport and Tourism if he has completed his review of new funding opportunities for the horseracing sector; and if he will make a statement on the matter. [37441/09]

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
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Question 110: To ask the Minister for Arts, Sport and Tourism the date of publication of the horse and greyhound review; and if he will make a statement on the matter. [37389/09]

Photo of Martin ManserghMartin Mansergh (Tipperary South, Fianna Fail)
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I propose to take Questions Nos. 102 and 110 together.

Since 2001, Government support for the horse and greyhound racing industries has been provided under the horse and greyhound racing fund, which was established under the Horse and Greyhound Racing Act 2001. 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 to continue the fund for a further four years to 2008. By the end of 2008, a total of €545.8 million was paid out of the fund. The remaining balance in the fund at the start of 2009 was €4.2 million. Some €68.1 million has been allocated to the fund for 2009 and a regulation which increased the level of the fund by €63.907 million has been made.

Funding of both Horse Racing Ireland and Bord na gCon supports two very important productive industries and helps to sustain the important role of 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 very substantial economic activity and make a vital contribution to the rural economy, including farm incomes.

The funding given to the greyhound racing sector helps in sustaining a tradition that has existed for hundreds of years and in underpinning the economic activity in what are in many instances less affluent regions of the country. The funding 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 funding has allowed Horse Racing Ireland to undertake a capital investment programme that has underpinned growth in the sector. The funding has allowed Ireland to develop into a world centre of excellence for horseracing.

A review of the fund has been completed and is currently being considered in the context of deciding on the future funding options for these industries. The level of funding to the horse and greyhound racing industries in 2010 will be dependent on overall budgetary conditions taking into account the significant contributions that these industries make to the economy in general and the rural economy in particular.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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This year's budget for the horse and greyhound racing fund is €68 million of which I believe it is estimated €31 would come from the betting tax. That was the forecast at the beginning of the year and I suspect that the outturn is considerably less. One way or another, the Exchequer was going to invest considerable money into the industry. All sides of the House would accept that this is not sustainable. I believe the industries themselves recognise it is not sustainable. They want as much as we do for the industries to provide the tax to support them.

For some time the Minister has been saying that he is considering alternative forms of tax. However, he says that one month and the next month he comes in and tells us how difficult it is to find an alternative form of tax and particularly to capture the on-line betting. Given that the review is complete, is it possible to bring forward a form of tax to ensure these industries can survive? I note that the submission of the Department of Arts, Sport and Tourism to the Department of Finance offered savings as a result of a new form of tax. Therefore, can the Minister of State confirm that a new form of tax, including perhaps capturing on-line betting, has been found?

Photo of Martin ManserghMartin Mansergh (Tipperary South, Fianna Fail)
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I cannot pre-empt what further decisions will be made on either tax or funding in the context of the budget and Estimates. I am certainly well aware of the arguments the Deputy has put forward. If she is expecting me to mark her card as to exactly what will happen, I regret I am unable to do that.

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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The Minister promised the review of the funding of the industries. The review has taken place. My understanding from the Committee Stage debate is that it was to be discussed in the House. We have not had that opportunity. We are lining ourselves up right beside the budget and there is no decision. We have all agreed that it is a really important industry that needs to be supported. However, from where will that funding come? I understand the Minister of State may not be able to answer that question today. There has been total failure to tax Internet gambling. The Government has also capitulated on taxing bookies. There are aspects that can and must be addressed. There are opportunities. It does not need to come from the Exchequer's standard tax take. It is really important for us to know the plan prior to the budget.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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I wish to confirm that the Minister gave a commitment to bring the matter to the Dáil to give us the opportunity to discuss it. As the Minister of State is a Tipperary man, I know this important industry is close to his heart. It is an export service industry and a regional industry that provides jobs in areas where there are very few other jobs. It is of great value to the economy. I can envisage it being put on the long finger and then the opportunity will come to stop the funding because of the financial situation facing the Government. I am sure there are opportunities to capture tax from these industries to fund horseracing and greyhound racing. I want the Minister to outline to the House the details of the findings of the review. I ask the Minister of State to bring that to the Minister to ensure that it happens between now and the budget.

Photo of Martin ManserghMartin Mansergh (Tipperary South, Fianna Fail)
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I can really only note what the Deputies have said and report it back to the Minister. Of course the equine industry is very important to the entire country. As the Deputy observed, it is particularly important to County Tipperary. Together the two industries employ approximately 27,500 people with approximately 80% in the horse industry and 20% in the greyhound industry. I was formerly a nominee of the Irish Thoroughbred Breeders Association when I sat in the Assembly that Deputy Mitchell's party apparently wishes to abolish.

Photo of Séamus KirkSéamus Kirk (Louth, Ceann Comhairle)
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We are moving off on a tangent.