Tom Hayes (Tipperary South, Fine Gael) | Oireachtas source

The most recent estimates available suggest the horse and greyhound racing industries, combined, support in excess of 24,000 jobs and generate €1.6 billion in economic output throughout the country. These industries receive financial support from the State through the Horse and Greyhound Racing Fund in accordance with the legislation, specifically under section 12 of the Horse and Greyhound Racing Act 2001. My Department makes payments from the fund to Horse Racing Ireland and to Bord na gCon.

In the period 2001 to date, a total of €841.77 million has been paid from the fund to the horse and greyhound racing industries in accordance with the provisions of the Act. State funding provided from the fund is crucial to the survival and continued development of the horse and greyhound racing industries. The Estimates for my Department, passed by both Houses as part of budget 2014, contained an allocation of €54.22 million for the Horse and Greyhound Racing Fund. This will be distributed 80% to HRI and 20% to Bord na gCon in accordance with section 12(6) of the Act. In order to allow my Department to provide the moneys allocated in budget 2014, it is necessary to comply with a technical requirement in the Horse and Greyhound Racing Act which requires increasing the cumulative limit on the Horse and Greyhound Racing Fund by €54.22 million. This is achieved by way of the regulations submitted here today. The aggregate limit on the Horse and Greyhound Racing Fund has been increased in this manner in the years 2004, 2009, 2010, 2011 and 2012.

The Joint Committee on Agriculture, Food and the Marine, at its recent meeting held on 26 November 2013, considered this financial provision in detail and concluded by recommending the approval of these regulations giving effect to the €54.22 million allocation in support of the horse and greyhound racing industry.

The funding provided to Horse Racing Ireland and Bord na gCon supports two very important indigenous industries and helps to sustain the role of the thoroughbred horse and greyhound breeding, training and racing enterprises in the development of the rural economy. These industries produce a very good return on the State's investment and are a significant net contributor to the Exchequer.

Horse racing is a global industry and stallions and mares can move from one country to another. Ireland must compete with world class competition in all aspects of the industry. It is estimated the Irish bloodstock industry provided 14,000 jobs - many in rural areas - almost €l.l billion in economic output and exports worth some €174 million. Ireland holds a pre-eminent position in the thoroughbred racing world, being the biggest producer of thoroughbred foals in Europe and the fourth largest producer in the world. Approximately 40% of the EU output of thoroughbreds and 11% of the global total are produced in Ireland. The industry is widely distributed throughout the country with 83% of horses bred on farms with two mares or fewer. There are 26 racecourses located across the country. Horse Racing Ireland is responsible for the overall administration, promotion and development of the industry.

The Horse and Greyhound Racing Fund has helped Ireland to develop into a world centre of excellence for horse racing and has allowed Horse Racing Ireland to undertake a capital investment programme that has underpinned a series of infrastructural improvements in the sector. Bord na gCon estimates that the greyhound industry employs over 10,300 people and contributes an estimated €500 million in economic output to local economies around the tracks which have a wide geographic spread. Bord na gCon reports that since 2002. More than 10 million people have attended greyhound racing meetings.

The funding being provided to the greyhound racing sector helps sustain a long-standing tradition as the industry is part of the social fabric of our country. This funding underpins the economic activity in what are in many instances, less affluent regions of the country. It has also contributed significantly to the improved facilities now available at 17 greyhound tracks around Ireland. The horse racing and greyhound racing industries tick all the boxes in terms of employment and foreign direct investment and they are the type of export-orientated industries we need. They enhance our international reputation and attract significant numbers of tourists to Ireland.

Successive governments have recognised the importance of the horse and greyhound racing industries and have supported them through legislation and policy initiatives. The overall objective of the Government is to ensure that these industries achieve their maximum potential and in so doing contribute to the economic and social fabric of the country. The support provided by public funds investing in these industries through the Horse and Greyhound Racing Fund has enabled Ireland to become a world centre of excellence for horse racing and greyhound racing and breeding. The draft regulations before the House provide for an amount totalling €54.22 million to be allocated to the horse and greyhound industries in 2014. It is expected that approximately €25.32 million will be collected from excise duty on off-course betting in 2013.

When the Horse and Greyhound Fund was established in 2001, it was envisaged that the revenue from the betting tax would provide sufficient resources to finance the fund. However, this has proven not to be the case due to successive cuts in betting duty coupled with an increasing level of betting activity migrating to tax-free platforms. I am pleased to say that as part of its overall commitment to the industry the Government is addressing, through legislation, the anomaly whereby remote and on-line betting operators are outside the tax net. The Minister for Finance has published the Betting (Amendment) Bill 2013 which, when enacted, will extend betting duty to on-line and remote operators. I understand that this Bill will be brought before the Oireachtas soon.

The Government wishes to ensure that an appropriate infrastructure is in place to facilitate the growth and development of the horse and greyhound racing industries into the future. The Indecon report into certain aspects of the Irish horse racing industry, commissioned by my colleague, the Minister for Agriculture, Food and the Marine, Deputy Simon Coveney, in early in 2012, made recommendations aimed at securing the viability and sustainability of the horse racing industry. Indecon recognised the horse racing sector as, "an important indigenous industry which has the potential to increase Ireland's export earnings and employment". Measures are being implemented to give effect to the recommendations made in the Indecon report. My colleague, the Minister for Finance, introduced the Betting (Amendment) Bill 2013 earlier this year which will bring remote and on-line betting within the tax net. This is consistent with the Indecon recommendation which advocated that, "Measures should be introduced to secure a significant increase in taxation from the Betting Sector". I expect that actions being taken by the industry aimed at growing commercial income and sponsorship and increasing efficiency through the streamlining of functions will benefit the industry. The Minister, Deputy Coveney, anticipates that he will soon be in a position to bring proposals to Cabinet setting out the legislative changes required to give effect to the recommendations contained in the Indecon report.

I recently announced the Department's intention to commission a review of certain matters relating to Bord na gCon. A public procurement process ensued and it is expected that the contract for this review will be awarded very soon. The review will encompass the policy, governance, regulatory framework and the financial situation of Bord na gCon and will assist the Department in identifying any measures required to meet the challenges that lie ahead in a very dynamic environment.

I look forward to seeing the outcome of the review, which I expect will be completed towards the end of March 2014.

State funding provided through the Horse and Greyhound Racing Fund is crucial to the survival and ongoing development of the horse and greyhound racing industries. These important industries require this funding in order to maintain and grow their economic activity, thereby supporting employment and facilitating export growth. Both Houses of the Oireachtas have approved the provision made in budget 2014 to allocate €54.2 million to the fund. In order for my Department to distribute that amount to Horse Racing Ireland, HRI, and Bord na gCon, the aggregate limit of the fund must be increased by €54.2 million pursuant to the provisions of section 12(5) of the Horse and Greyhound Racing Act 2001. Accordingly, I wish to request that this House approve the motion. I ask for the House's support so as to ensure that HRI and Bord na gCon receive the funding provided for in budget 2014 and that the important role of these industries, including the employment supported and the economic activity generated, is sustained. I commend this motion to this House and I look forward to discussing any matter that may arise.