Noel Coonan (Tipperary North, Fine Gael)
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Question 7: To ask the Minister for Arts, Sport and Tourism the legislative status of the horse and greyhound racing fund; the implications a reduction in funding will have on the industry in 2010; his plans for an alternative system of financing this sector; and if he will make a statement on the matter. [47584/09]

Michael D Higgins (Galway West, Labour)
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Question 10: To ask the Minister for Arts, Sport and Tourism the Exchequer contribution to the Horse and Greyhound Fund in 2008, 2009 and that projected for 2010; and if he will make a statement on the matter. [47400/09]

Martin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 7 and 10 together.

Government support for the horse and greyhound racing industries is provided under the horse and greyhound racing fund, which was established under section 12 of the Horse and Greyhound Racing Act, 2001. Section 12(6) of the Act specifies that, of the moneys paid into the fund each year, 80% shall be paid to Horse Racing Ireland and 20% shall be paid to Bord na gCon.

In 2004, and earlier in 2009, the Government put in place regulations to increase the limit of the fund. By the end of 2009, a total of €613.9 million will have been paid out of the fund. In 2008, €76.3 million was allocated to the fund. Of this, €36.4 million was derived from excise duty on off-course betting, with €39.9 million provided by the Exchequer. In 2009, of the €68.1 million allocated to the fund, €36.6 million was derived from betting duty, with €31.5 million provided directly by the Exchequer. Some €59.3 million has been allocated to the horse and greyhound racing fund for 2010. There are no projections available for excise duty on off-course betting for that period.

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 horse racing.

The Deputy will be aware that a review of the horse and greyhound racing fund has been completed this year. In that context, a report on the horse and greyhound racing fund by FGS Consulting has been produced.

The report states that, while not all aspects of the total contribution of the sector can be definitively quantified, adequate direct and indirect evidence supports a strong argument that the horse and greyhound racing industries constitute a major source of direct and indirect employment, give rise to considerable domestic and export earnings and are a key driver of substantial economic activity, especially in rural areas. On this basis, the report argues there is a strong underpinning for the original objectives of the fund in providing Exchequer support to promote and enhance these indigenous industries based on their potential to yield a substantial economic return.

The report maintains any sharp withdrawal or curtailment of funding in the short term would likely have major detrimental impacts on the industries involved, with the consequent risk of undoing much of what has been achieved since the fund came into existence in 2001. At least in the medium term, these industries need secure State support. If this were not available, employment would fall, infrastructural development would not take place, the product would deteriorate, integrity would become compromised and the industries would be seriously undermined.

Some €59.3 million has been allocated to the fund for 2010. This substantial funding will build on the almost €614 million already invested in the industries since 2001. I intend to work closely with Horse Racing Ireland and Bord na gCon to ensure that these important industries continue to contribute to the economy. To give effect to this Estimates allocation, it is necessary under the relevant provisions of the Horse and Greyhound Act 2001 to have the increase in the horse and greyhound fund specified by regulation. The process commenced earlier this week with the laying of the draft regulations before the Houses. The appropriate offices of the Dáil and Seanad have been contacted to request the resolution be placed on their respective Order Papers.

I hope to appear before the Joint Committee on Arts, Sport, Tourism, Community, Rural and Gaeltacht Affairs in January with a view to making the regulations shortly thereafter so that the 2010 funding to Horse Racing Ireland and Bord na gCon can be paid out.

Olivia Mitchell (Dublin South, Fine Gael)
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No Member will disagree this valuable industry must be supported. It provides not just 28,000 jobs but the unquantifiable benefit that it internationally showcases Ireland. I am concerned, however, as are those involved in the industry, as to how it will be funded. Many times the Minister has claimed he is examining new ways of funding. I note in his Department's submission on the cuts proposed by an bord snip nua that great savings would be made in the new scheme for the horse and greyhound fund. How are these savings to be effected? What new taxation scheme will be introduced? Has any progress been made in devising a new scheme to capture Internet betting. Will new legislation be introduced for a new horse and greyhound fund?

Martin Cullen (Waterford, Fianna Fail)
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I will be presenting my proposals on that in January to the Joint Committee on Arts, Sport, Tourism, Community, Rural and Gaeltacht Affairs.

Mary Upton (Dublin South Central, Labour)
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There are several elephants in the room that were not mentioned at all, one of which is betting tax. The Minister indicated there is no figure potentially available for the coming year for betting tax. The Irish Bookmakers Association predicts it could be €30 million, leaving a shortfall of €30 million from direct Exchequer funding. This shortfall will be made up from funding for other sporting organisations and the Department's general Vote.

All Members are supportive of the horse and greyhound racing industries and recognise they are hugely important to the economy, particularly in rural areas. The point is where the funding for the industry comes from and how it is put in place to ensure the industry can be sustained without taking it from direct Exchequer funding, as was intended originally until the change in the 2001 to the rules.

Martin Cullen (Waterford, Fianna Fail)
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I had to fight very hard to get the amount for this fund. Everyone accepts the Exchequer cannot continue to put the resources that it has already. We all accept it is not just a sport, but a hugely important and significant industry. The Minister for Finance is directly involved in examining the taxation issues surrounding the industry, which I welcome.

I am deeply frustrated with the general across-the-board support from the industry. I have spoken to all the players and everyone blames everybody else. That is no longer going to cut any ice. We are seeing an industry that has boomed over the past several years with large amounts of money being bet on telephone and the Internet outside of the country. I believe that so much resources are being spent on the industry that a small percentage from it would more than adequately assist the horse and greyhound fund. I hope this will be resolved because the Exchequer will not continue to add to the fund in the future.

Brendan Howlin (Wexford, Labour)
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That concludes questions for today and for this Dáil session. I wish all my colleagues present in the House a peaceful and happy Christmas.

Martin Cullen (Waterford, Fianna Fail)
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I wish the Leas-Cheann Comhairle, the Ceann Comhairle, the staff and all my colleagues on the Front Bench of Fine Gael and Labour and their families a peaceful and happy Christmas. We have had a good year working together and I am sure we will again next year.

Joe McHugh (Donegal North East, Fine Gael)
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What about us backbenchers?

Martin Cullen (Waterford, Fianna Fail)
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I meant everyone on all sides of the House, back, front, no matter where.

Olivia Mitchell (Dublin South, Fine Gael)
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I too would like to be associated with those good wishes. I would like to wish everyone and all their families a happy Christmas.

Mary Upton (Dublin South Central, Labour)
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I wish everyone a very happy Christmas.