Brian Ó Domhnaill (Fianna Fail) | Oireachtas source

I welcome the important legislation before the House, which closes an effective tax avoidance loophole used by the offshore and online gambling sectors. Those sectors currently account for a large proportion of all gambling revenues within the State. The horse racing and greyhound sectors are very important for the economy, jobs, inward investment and our reputation abroad.

This year the Horse and Greyhound Fund is valued at around €54 million, but only 47% of that is being raised through the betting tax. That means that taxpayers are effectively providing the other 53% this year, which I think is wrong. The industry's representatives have appeared before a number of Oireachtas committees. Both the horse racing and greyhound sectors have indicated that they would like to see the industry being self-financed, either through the extension proposed in the Bill or an increase in taxation rates.

This welcome Bill brings with it a great opportunity. I want to see online and offshore gambling being taxed. It is important that this be done. Anecdotal figures and replies to parliamentary questions indicate that such a tax at 1% would raise enough money to make the industry self-financing, thus lifting the burden from taxpayers. There are questions concerning where the money would go once it was raised and whether it would be levied at 1% or 2%. I would favour 2% as a minimum. Some of the money raised should also be spent on animal welfare for aged horses and greyhounds.

Other sports should also be examined in this regard, because betting is not exclusive to horses or greyhound racing. Bets were placed on the Donegal versus Kerry game at the weekend and a taxation level applies there as well. A self-financing model should be established and this Bill presents the opportunity to do so. We should consider increasing the level from 1% to 2% or 3%. Some of that money could then be ring-fenced for animal welfare. Another portion of the money could also be ring-fenced for the Irish Sports Council to develop participation in sport. An epidemic of obesity is affecting young people in our country at the moment, so this is a golden opportunity to fund the Irish Sports Council properly.

The Irish horse racing industry, which employs 15,000 people, is currently suffering and has seen 4,000 jobs lost since 2008. I understand that Ireland is the only major horse racing nation that does not provide funding for the thoroughbred industry in the form of automatic direct payments. That matter should also be examined.

The industry is a hugely valuable one. One has only to look at the excellent facilities around the country to appreciate that. However, taxation raised on betting since 2001 has fallen by 50%. On the other hand, the volume of money gambled has increased fourfold in the same period, so there is something wrong which needs to be addressed in this Bill.

The extension is welcome and the Minister is doing exactly the right thing. The promise was made and is now being fulfilled. However, the Minister needs to consider increasing the 1% levy to 2% or 3% and using the money as I have outlined. Nobody placing a €5 or €10 bet would mind 1% or 2% of that going towards the racing industry or sport in general. If members of the public are having a punt I am sure they would not mind that.

While race track opening hours may have consequences, there are no closing times for online betting. People in Ireland can effectively bet online throughout the night on horse races anywhere in the world. Bookmakers, meanwhile, deserve a break because they are paying rates. The opening hours proposal is a positive thing, but controls should be introduced in the new gambling Bill, which I hope will come before us shortly.