Trevor Ó Clochartaigh (Sinn Fein) | Oireachtas source

Ach an oiread le mo chomhghleacaí, ba mhaith liom comhghairdeachas a dhéanamh leis an Aire Stáit as ucht a cheapachán mar Aire Stáit. Go n-éireoidh go geal leis sa jab nua. Sinn Féin accepts that a huge number of jobs are created by the greyhound and racehorse industries. In addition, many of these jobs are in rural areas and make a major contribution to the rural economy, including farm incomes.

The funds provided in the horse and greyhound racing fund are divided 80% - 20% between horses and greyhounds. We would like to see a more balanced approach and a more proportional recognition of the benefits arising from the greyhound racing industry. Bord na gCon has estimated that over 10,000 people are employed directly and indirectly in the industry, and that its value to the economy is over €500 million.

The horse racing industry is estimated to employ over 20,000 people, between racing and breeding. It is estimated that 1.2 million people attend race meetings in Ireland annually. As regards tourism, the following points are often raised by those who support State funding for the industry. The benefit to the local economy of a race meeting cannot be underestimated, along with the social benefits to an area of race day activity, the hospitality sector, retail sector and local transport companies. There is a tourism benefit to the development of the horse and greyhound industries, and exports in the thoroughbred sector are significant.

With regard to the aforementioned points, I want to raise a number of important and relevant issues. First, horse racing receives significant public funding in Ireland. In 2011, for example, €57 million was made available from the Exchequer to the horse and greyhound fund established under the 2001 Act. We accept that horse racing has a social, economic and cultural place in Irish life that can be pointed to in justifying a positive policy stance towards the industry. It is not self-evident, however, that such a policy stance should extend to the provision of public funding. If public funding is justified, it does not dictate the level of support that is required nor the means through which it should be provided.

Second, the primary beneficiary from horse racing is betting, rather than the racing industry. It is therefore imperative that the Government address the issue of excise on betting and particularly as it relates to off-course betting. If we get this right, it could save the Exchequer a minimum of €57 million per annum, remove the funding of horse racing and greyhound racing from the central Exchequer, and protect jobs in the Irish betting industry, as well as the horse and greyhound industries.

Ireland currently has one of the lowest betting tax rates in the world. This is not acceptable and needs to be addressed urgently. In the UK, the betting industry pays an effective tax rate of 3% of turnover, which is three times higher than Ireland. In France, legislation provides for taxation of 15% of turnover, some 15 times higher than Ireland, of which they return 8% to the French equine industry.

As it stands, State funding for horse racing in Ireland now goes beyond the role of securing a benefit from gambling for the industry, as it includes a subvention from general taxation.

In the context of wider sports policy, other claims on State funding could equally be made. For example, in connection with the facilities deficit that exists for children's sport. At a minimum, future policy needs to assess carefully the public benefit that is served by State support for horse racing and the priority it should be accorded in expenditure decisions.

Two other more general issues need to be considered. First, public policy needs to take greater account of the role of horse racing in fostering and promoting gambling and in the possible social costs that may arise as a result. Second, in many countries taxation on gambling is a significant part of the revenue base. Gambling in Ireland makes little contribution in this context.

In a general sense, Sinn Féin supports the measures being brought forward. The thoroughbred industry recently commented on EirGrid's decision to locate pylons close to areas where thoroughbred horses are being bred. This is a big issue from a health perspective for humans and animals. Perhaps the Minister would comment on that.