Brian Ó Domhnaill (Fianna Fail) | Oireachtas source

I thank the Minister for the comprehensive overview of the legislation and highlighting the importance of the Irish thoroughbred breeding and horse racing industry to the economy. As outlined by the Minister, it is worth about €1.1 billion in economic output terms to the economy, which is significant. We will not be hindering this legislation. Of the parties on this side of the House, Fianna Fáil has formed the opinion that it is important that this legislation is approved and signed off on before the Taoiseach dissolves the Dáil, whenever that may be, in order to allow the industry get on with the work required.

Today also the Oireachtas Joint Committee on Agriculture, Food and the Marine launched its report, the Irish Horse Industry, which cited 44 recommendations on areas such as funding, breeding, welfare and harness racing, so it is an important day for the horse racing industry in that respect. While not linked to this legislation, nonetheless some of the recommendations contained within the report are addressed in it. I know from the work of the joint committee that the pre-legislative scrutiny was a wonderful success. This is how parliamentary democracy should work and legislation should be scrutinised.

I commend the Minister for accepting in the other House some of the worthy suggestions from all sides of the House which were tabled in amendments. This brings about proper and meaningful legislation. Rushed legislation makes bad legislation. This legislation was not rushed. We may want to finish it off this evening but that does not mean it is being rushed because we had the opportunity through the committee system and in the other House for extensive debate.

The importance of the industry has been highlighted by the Minister in economic terms, including the 18,000 jobs it supports. Irish horses are exported to 37 countries every year at a value of more than €200 million. There are almost 7,000 breeders in Ireland, 15% of whom are overseas investors spread across every county in Ireland. It is interesting that racing festivals contribute some €260 million to local economies. For example, the Galway Races is worth an estimated €60 million and the latest figures available to me show attendance at race meetings in 2013 grew to 1.24 million. It is a vitally important industry, the bedrock of Irish sport and must be supported.

This legislation is coming against the backdrop of the Indecon report in 2012 which provided a comprehensive analysis of the industry. It made 37 recommendations on funding, the board of Horse Racing Ireland, the streamlining of functions, the marketing and competitiveness of the sector and the governance and legislative changes required. I am glad these recommendations have been brought forward in this legislation. Corporate governance, internal controls, board structure, financial autonomy and the oversight role are vitally important, in particular when State finances and taxpayers' money are being used. Strengthening those through the legislative process adopted here will provide the oversight the Exchequer requires. We speak of the Exchequer because we have the horse and greyhound fund. The thoroughbred industry is funded extensively by private investment. I understand it is approximately €400 million. There is then approximately €55 million, of which 80% goes to horse racing, available from the horse and greyhound racing fund.

Time is against us but there are some main points I wish to make on the legislation. As mentioned by the Minister, the legislation will increase the number of ministerial appointees to the board and will clearly assign governance and regulatory responsibilities. I urge the Minister, or whoever the new Minister may be, to ensure those appointments are credible. We saw a recent appointment to the Irish Greyhound Board raised a number of questions from within the industry and was made against the recommendation of the Indecon report. It had recommended that board appointments would not be for more than two terms. Someone was appointed for a third term even though the corporate governance structures within that organisation are questionable. This organisation has a €1 million deficit this year, despite receiving more than €15 million in Exchequer funding. I appeal to the Minister to ensure that those appointed are fit for purpose. I am not making any political charge in this regard because my party was at the coal face of many politically motivated appointments. It is wrong and the system needs to be changed so that we ensure we appoint knowledgeable people who can provide substance while on State boards.

The transparency and new structural arrangements are very much welcome. The new financial management in the industry must be welcomed. Elimination of the duplication role and driving increased efficiencies along with the proposal around the establishment of a new statutory committee must be welcomed. The respective functions of Horse Racing Ireland and the Racing Regulatory Body are clarified.Having incremental payments under the fund is also to be welcomed. We need to build in performance management, and payments cannot be made willy-nilly. If payments are made they must be made with the performance criteria or objectives laid down.

Giving the Department the role of value-for-money audits is good. Those value-for-money audits need to be wide-ranging and should not specifically focus on efficiencies because value for money is not just about efficiencies. Many of the public sector value-for-money reviews and policy changes have focused on efficiencies without looking at equity and effectiveness. Of course, value for money relates to the three e's - efficiency, effectiveness and equity. In an industry such as this, it is important not just to look at the bottom line in euro terms, but to look at the overall picture as well. Of course, the role of the Comptroller and Auditor General is very definitive because he cannot look at the overall effectiveness of value-for-money reviews, which is a shortcoming in the role.

I very much welcome the Betting (Amendment) Act to apply the 1% tax on online betting. As we said this morning, this industry can be self-financing with a betting tax that is fit for purpose to fund the industry. I welcome section 15 of the Bill and the Minister's comments that this is the first step. The second step will be to introduce long-overdue legislation covering changes to the greyhound industry. The IGB requires intervention as well. I know the Minister is committed to that and he will certainly have our full support on this side of the House, although the arithmetic may well be changed after the general election. I hope the Minister, Deputy Coveney, is back in the agriculture portfolio if Fine Gael is returned to power.