Simon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I move: "That the Bill be now read a Second Time."

I am pleased to introduce the Horse Racing Ireland Bill 2015 to the House. The Irish bloodstock breeding and racing industry is of major national importance in terms of employment, especially in rural areas, and in terms of exports and tourism. It is estimated that the industry employs approximately 18,000 people when breeding, racing, betting and other elements of the industry are included. It contributed almost €1.1 billion to the Irish economy in 2012 and achieved exports of over €205 million to 37 countries in 2013. It is estimated to attract up to 80,000 tourists to Ireland each year. Those tourists are among the more than 1 million people who attend horse races each year in this country. The Irish thoroughbred sector has built a global reputation for excellence. In sporting terms, Ireland can consider itself to be among the best in the world.

Horse Racing Ireland, HRI, is a commercial State body that was established under the Horse and Greyhound Racing Act 2001. It is charged with the overall administration, promotion and development of this very important industry. These activities are funded to a significant extent by the Exchequer funding of the horse and greyhound fund, which comes within the ambit of my Department's Vote. After a period of necessary retrenchment over the past several years, I have started a significant restoration of the Exchequer provision for HRI - to €54.4 million in 2015 and €59.2 million in 2016 - to assist with the development of the sector. HRI also provides funding for integrity services to the racing regulatory body. The Turf Club, which includes the Irish National Hunt steeplechase committee and is a private body, is designated as the racing regulatory body and is charged with carrying out these functions under the current legislation. HRI provided €7.1 million for these activities in 2015. The independent role of the racing regulatory authority is protected in the Bill I am introducing today.

Before I deal with the substance of the Bill, I want to refer to a report, Review of Certain Aspects of the Irish Horse Racing Industry, which I commissioned and which was published by Indecon International Economic Consultants in July 2012. The Department facilitated a stakeholder consultation process as part of that review. Written submissions were sought from interested parties and forwarded to Indecon for consideration. The resulting report examined the legislation, governance structures, funding and management of the industry, including the streamlining of functions assigned by legislation to HRI and the racing regulatory body. It made a number of recommendations in this regard. Following the Indecon report, HRI and the racing regulatory body established a streamlining task force with a view to achieving efficiencies, and a consultancy firm, Smith and Williamson, was appointed to act as a facilitator in these discussions. The consultants estimate that the 18 recommendations contained in its report could result in savings of €1.8 million.

My Department drafted the general scheme of the Horse Racing Ireland Bill 2015 taking account of this general background and the recommendations of the Indecon and Smith and Williamson reports. The general scheme was subject to thorough pre-legislative scrutiny by the Joint Committee on Agriculture, Food and the Marine in 2014. I believe the joint committee heard from all the major players in the industry and departmental officials appeared before it on two occasions. The comprehensive report produced by the committee was useful in finalising the Bill and we changed the Bill accordingly. On foot of the pre-legislative scrutiny report, I have increased the proposed membership of the board and reserved a seat for a representative of the stable staff.

I have also made some changes in the structure of the sections dealing with the functions of HRI and the Racing Regulatory Body, RRB, to increase transparency.

I am also inserting an obligation for both bodies to consult each other when making rules within their own remit to avoid changes that may adversely impact on operations of the other body and to create greater synergies. This requirement is simply for the sake of good order and does not prejudice the independence of the RRB, which explicitly remains solely and independently responsible for the making and enforcing of the rules of racing. I have also inserted a provision requiring HRI to consult with the executives of the authorised racecourses when negotiating media contracts. I am happy to detail these changes on Committee Stage. In the meantime, I acknowledge and thank the members of the committee for their useful input in the development of this Bill.

Before going through the Bill in detail, I would like to draw the attention of the House to a small change in the Forestry Act 2014, which was not in the general scheme. Last year during the passage of the Forestry Bill the rather burdensome requirement for two separate consents for a forestry road was raised. Under the existing regime, consent is required from my Department for the construction of a forest road while an entirely separate consent is required from the local planning authorities for the entrance of a forest road on to a public road. I am pleased to announce that in this Bill I am taking the opportunity to introduce an amendment to eliminate this duplication, following consultation and agreement with the Departments of the Environment, Heritage and Local Government and Transport, Tourism and Sport. On enactment of this provision, only one consent will be required. This will be administered by my Department and will cover the construction of the forest road as well as its entry on to the public road. While this is a small change, it will reduce the administrative burden on the industry and will make the consent process quicker and more efficient.

Turning to matters relating to horse racing, which is what this is about, the Bill before us builds on the recommendations of the Indecon report and is intended to strengthen governance and transparency within the administration of horse racing, clarify the respective roles of HRI and the RRB, improve accountability and control over State funding and provide a foundation for streamlining the functions of the two bodies, where it makes sense to do so.

I will now provide Deputies with detail on the Bill. Section 1 provides the definitions for the Bill. Section 2 introduces new definitions of jockeys and qualified riders and betting intermediaries to be inserted into the Act for the purposes of defining the membership of the new statutory committees. The section also extends the definition of integrity services to allow for off-course activities and of the RRB to include limited companies established by that body, these latter two at the request of the RRB. This section also amends the definition of the rules of racing so that the rules explicitly apply to point-to-point racing. Section 3 provides for modernisation of provisions relating to fines under the Irish Horseracing Industry Act 1994 and the deletion of continuous offences in line with current standard legislative practices. Section 4 changes some of the constituencies that ordinary members of the board represent by re-enacting the Schedule to the 1994 Act. The number of ministerial representatives on the board is increased to three, in line with the Indecon recommendations. In addition, in direct response to the report of the Oireachtas committee following the pre-legislative scrutiny of the heads of this Bill, I have provided for two board representatives from the industry services committee, one of whom shall be a representative of stable staff. The section also explicitly requires HRI to have regard to Government policies and guidelines in determining the remuneration or allowances paid to its chairman and to comply with any directions given by the Minister for Agriculture, Food and the Marine, with the consent of the Minister for Public Expenditure and Reform, in this regard. Furthermore, the chairmen of the new statutory committees established in subsequent sections shall be members of the board of HRI. This is intended to provide greater transparency and better communication between the statutory committees and the board. Finally, this section updates references to the Minister for Finance and to the Minister for Public Expenditure and Reform. Subsection 2 provides for the transitional arrangement.

Section 5 of the Bill consolidates and clarifies the general functions of HRI and clearly provides that HRI is responsible for the overall administration, governance, development and promotion of the industry other than the integrity functions that are assigned in a later section of the Bill to the RRB. It provides that HRI may use directives to set rules and procedures in order to guide its activities, but also requires HRI to consult with the RRB before issuing any directive. Section 6 provides for the statutory committees in HRI and standardises their size. Subsection 1 simply re-enacts the provisions for the race fixture committee, in line with the other statutory committees. Subsection 2 provides for the establishment of a new industry services committee to focus on the requirements of those employed directly in the horse racing industry. It provides that the members shall elect the chair of the committee who will be a member of HRI. It also provides for a new betting committee to focus on the requirements of the betting section on the same basis as the industry services committee. Subsection 3 increases the membership of the media rights committee to five and provides that members of the committee need not be members of the board of HRI so that specialists can become committee members. It also provides that the committee will consult with the executives of authorised racecourses when negotiating any contract, thus increasing the influence of the authorised racecourses in matters relating to media rights, an issue which has been a topic of discussion in recent weeks.

Section 7 clarifies that HRI may make deductions from monetary prizes in accordance with its directives, as is current practice. Such directives provide for payments to various associations, to jockeys' and trainers' pension trusts and other welfare funds. The section further provides that HRI cannot make changes in the directives governing deductions for charitable funds administered by the RRB without the prior agreement of that body. Section 8 strengthens governance arrangements by explicitly providing that HRI must provide information to the Minister about its activities or its compliance with the code of practice for governance of State bodies, by including provision for the issue of a direction to HRI by the Minister regarding such compliance and by providing that the Minister may require HRI and the RRB to agree procedures relating to such compliance.

Section 9 provides that the owner or keeper of a thoroughbred foal must pay the thoroughbred foal levy in advance of registering the foal in the stud book and allows the registering authority to refuse to register a foal if the levy has not been paid. Section 10 permits HRI to establish companies to carry out any of its functions and substitutes references to the Minister for Public Expenditure and Reform for references to the Minister for Finance. Section 11 defines the role of the RRB and its functions under the Act. It maintains its responsibility for the integrity services and licensing individuals involved in horse racing. It requires the RRB to consult HRI about new rules but does not provide any imprimatur to HRI in that regard. It also provides that funds due to the RRB but processed by HRI as a result of administrative streamlining, such as payments for licences, registrations and fines, must be paid by HRI to the RRB and such funds shall be taken into account when determining the budget for integrity services.

I assure anyone who may have concerns in this regard that the purpose of the Bill is to streamline the process as opposed to changing where money is allocated. The money that used to come into Turf Club offices will come through a central office, if one likes, provided by Horse Racing Ireland but will continue to be automatically allocated to the Turf Club. I will ensure, on Committee Stage, that this is made absolutely clear in the Bill. Concerns expressed in this regard are unfounded.

It is inconceivable that the State body charged with providing funding from the taxpayer to a third party in respect of statutory functions would not be in a position to take into account funds levied as a result of the exercise of those functions. Strong checks and balances are already built into the legislative framework to protect the independence of the integrity function. Given that a State body is being allocated more than €7 million per annum for its integrity budget, the other income of the Turf Club will obviously be taken into account when determining this budget. However, current funding streams for licensing and regulation should not be affected.

Section 12 develops the theme of accountability and requires the RRB to prepare accounts in respect of its statutory obligations and forward such accounts to the Comptroller and Auditor General. This was a requirement of the Department of Public Expenditure and Reform and is consistent with the general theme of improving accountability.

Section 12 also provides that the chief executive of the RRB shall attend Oireachtas committees if requested to do so. It also obliges the RRB to furnish information to the Minister, on request, regarding its statutory activities, including its compliance with Government codes and policies. The section provides that the RRB must provide information to Horse Racing Ireland with regard to future funding requirements and disposal of funds in order that HRI may comply with its statutory obligations in accounting for funding for the industry.

There is no intention whatever to change the status of the RRB, the private nature of the Turf Club or its relationship with its members. These provisions are simply intended to improve accountability for taxpayers' money, as all of us have an obligation to do.

Section 13 - head 14 in the general scheme that was submitted to pre-legislative scrutiny - places the existing RRB practices in respect of transparency on sanctions imposed by it on a statutory footing. Section 14 - head 13 in the general scheme submitted to pre-legislative scrutiny - provides that bookmakers at point-to-point meetings will be subject to the same rules as they are at authorised racecourses.

Section 15 provides greater control over disbursements from the horse and greyhound racing fund by permitting the Minister to withhold payment of instalments from Horse Racing Ireland or Bord na gCon where either organisation has failed to provide satisfactory strategic plans, make reasonable progress on its strategic plans or provide the Minister with required information. The section also provides that moneys paid from the fund through instalments reflect the financial needs of HRI and Bord na gCon in order that the fund is used to best effect. It should not be forgotten that the fund amounts to more than €70 million per annum, a substantial figure.

Section 16 has been introduced following pre-legislative scrutiny and is consequential on section 15. The section inserts a new provision into the Greyhound Industry Act 1958 to provide that Bord na gCon is obliged to furnish information on its compliance with the code of practice for State bodies. It is similar to provisions referred to earlier in respect of Horse Racing Ireland.

Section 17 provides for the sharing of data between HRI and the RRB in accordance with the Data Protection Acts to facilitate administrative streamlining.

Section 18 amends the provisions regarding the appointment of authorised officers for the purposes of the Animal Remedies Act 1993. Under the existing provisions, an authorised officer would have powers under all of the provisions of the Animal Remedies Act. This revised provision empowers the Minister to appoint authorised officers for all or any of the functions specified in the Act. It would, for example, permit the Minister to appoint officers of the RRB to be authorised officers for the purposes of the Act in respect of horses only. This will

Section 19 is the minor amendment to the Forestry Act, to which I have referred. Section 20 repeals the Horse Racing Ireland (Membership) Act 2001, as the measures in that Act are re-enacted in section 4 of this Bill. Section 21 contains the normal provisions for citation and commencement of the Bill.

This legislation will strengthen governance and transparency within horse racing, lay the foundations for increased efficiency and cost reduction through streamlining of administrative operations, clarify the respective functions of Horse Racing Ireland and the RRB, strengthen the RRB integrity functions, and improve accountability and control over State funding in the horse and greyhound racing sectors.

I intend to introduce a Committee Stage amendment to repeal sections 10(9) and (10) of the Horse and Greyhound Act 2001 which deal with media rights, and include a provision requiring any media rights deal negotiated collectively on behalf of the industry to be ratified by the Horse Racing Ireland board and representatives of the authorised racecourses. I also intend to introduce a minor technical amendment to section 7(2) to ensure that Horse Racing Ireland cannot alter the contributions to charities either administered or established by the Turf Club without the approval of that body. This is simply a technical amendment. I may introduce one or two other amendments if they make sense, are appropriate and will improve the legislation.

The Bill will strengthen the Irish horse racing industry, enable it to deal with the existing challenges and maximise its future potential. Horse racing is an extraordinary industry that is full of extraordinary people who set incredibly high standards. As a result, horse racing, as a sport and an industry, has been extraordinarily successful in Ireland. The sector will continue to be protected and supported, which is the purpose of this legislation. I commend the Bill to the House.

John Browne (Wexford, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I welcome the Bill and compliment on the Minister - an unusual position for me to take - on allocating more money for the horse and greyhound racing fund. Following the reductions in funding for horse racing during the recession, the Minister's decision to allocate additional money to this important industry in the years ahead is an important one.

Horse racing calls to mind names such as Jim Bolger, Aidan O'Brien, Paul Nolan, Colm Murphy and the Mullins brothers. As a Deputy from the south east, I recognise the importance of horse racing in terms of employment, tourism, sport and culture. It is an important industry in the south east, and almost every farmer in County Wexford owns one, two or three horses. The horse industry has a number of different elements, including racing, breeding and show jumping.

The Fianna Fáil Party will support the Bill's passage through the House. I hope it will build on existing legislation in this area. As the Minister noted, the Bill strengthens governance and transparency within the administration of horse racing on the island of Ireland and incorporates the findings of an important independent report published by Indecon in 2012. I am pleased to note that the Minister has recognised the importance of the contribution of the Joint Committee on Agriculture, Food and the Marine during pre-legislative scrutiny of the Bill. It is welcome that he took on board some of the comments and recommendations made by the joint committee.

As the Minister stated, Horse Racing Ireland is the governing body for horse racing on the island. The proposed legislation improves accountability and control of State funding in the horse racing sector.