Andrew Doyle (Wicklow, Fine Gael) | Oireachtas source

This is about the regulations that are to be introduced. The most recent estimates available suggest the horse and greyhound racing industries combined underpin in excess of 24,000 jobs and stimulate economic output of approximately €1.6 billion. They receive financial support from the State through the horse and greyhound racing fund under section 12 of the Horse and Greyhound Racing Act 2001. My Department makes payments from the fund to Horse Racing Ireland and Bord na gCon. In the period 2002 to date a total of €1.03 billion has been paid from the fund to the horse and greyhound racing industries in accordance with the provisions of the Act. The cumulative upper limit on payments from the fund, provided for under the relevant regulations, has, therefore, been reached.

Exchequer funding provided from the fund is pivotal to the survival and continued development of the horse and greyhound racing industries. To give effect to the budget for 2016, the cumulative upper limit must be increased by regulations. The Estimates for my Department, passed by both Houses as part of the budgetary process for 2017, include an allocation of €80 million for the horse and greyhound racing fund. It will be distributed in accordance with section 12(6) of the Horse and Greyhound Racing Act 2001, with 80% going to Horse Racing Ireland and 20% to Bord na gCon. These percentages amount to €64 million and €16 million, respectively. To allow my Department to provide the moneys allocated in budget 2017, it is necessary to comply with the technical requirement under section 12(13) of the Horse and Greyhound Racing Act 2001 to increase the cumulative limit on the amount payable from the horse and greyhound racing fund by €80 million to €1.118 billion. This is being achieved by way of the regulations submitted today. The aggregate limit on the horse and greyhound racing fund was increased in this manner in 2004, 2009, 2010, 2011, 2012, 2013, 2014, and 2015.

With regard to the horse racing industry, it is estimated that the bloodstock industry provides 14,000 jobs and contributes almost €1.1 billion to the economy. In 2015 bloodstock export sales rose to €268 million in what was a remarkable year for the bloodstock industry. The industry is also estimated to account for up to 80,000 tourists to Ireland each year. They are among the estimated 1 million plus who attend horse racing each year in the country. Ireland holds a distinguished position in the thoroughbred racing world, being the biggest producer of thoroughbred foals in Europe and the fourth biggest in the world. Approximately 40% of the EU output of thoroughbreds and 11% of the total worldwide are produced in Ireland. The horse and greyhound racing fund has been pivotal in shaping the destiny of this dynamic industry. It has helped Ireland to become a world centre of excellence for horse racing and allowed Horse Racing Ireland to undertake a capital investment programme that has underpinned growth in the sector.

The horse racing industry satisfies all of the critical requirements for success in terms of employment and foreign direct investment. It is the type of export-oriented industry we need. The industry has been the flagship for the country and had an immeasurable influence on its international reputation in recent times. Government funding of this key industry presents an excellent opportunity to yield a high return on investment. Support for certain strategic industries is important to future economic growth and can provide widespread benefits for society, in addition to the economy.

With regard to the greyhound industry, the greyhound racing sector is also an important driver of employment and activity in both rural and urban areas. A report by Jim Power Economics in 2010 estimated that the greyhound industry employed over 10,300 people and contributed almost €500 million in economic output to local economies around tracks, which have a wide geographical spread. Bord na gCon reports that, since 2002, over 10 million people have attended greyhound race meetings. The board has an annual turnover of approximately €40 million. Funds generated from racing are reinvested in the industry through contributions to prize money and grants to various bodies involved in the greyhound racing and breeding sector, in addition to the promotion of greyhound welfare and the regulation of the industry.The challenge for the board is to encourage the development of a commercial greyhound racing and breeding industry built on a consumer-focused, high-quality entertainment product which meets the highest international regulatory standards. The funding being provided to the greyhound racing sector helps to sustain a long-standing tradition as the industry is part of the social fabric of the country and underpins economic activity in what are often less affluent regions. It has also contributed significantly to the improved facilities available at greyhound tracks around Ireland. Greyhound racing as an activity is inextricably linked to the farming community and, while it is undoubtedly part of the fabric of rural Ireland, it also enjoys a strong urban support base. The overall objective of the Government is to ensure that the horse and greyhound racing industries achieve their maximum potential and, in so doing, contribute to economic and social development. Governments of all persuasions have acknowledged the importance of these industries and have supported them through legislation and policy initiatives over a long period. Without this support, these vital industries would simply not survive.

Broadening the tax base is an issue that has been of significant concern among many politicians, in particular. The advent of new technologies and business models has challenged Government to re-evaluate the funding mechanisms for the industry. As part of its overall commitment to the industry, the Government has addressed, through legislation, the anomaly whereby remote and online betting operators were outside the tax net. The Betting (Amendment) Act 2015 came into force in April 2015 and brings betting exchanges and Internet and mobile betting providers within the scope of the existing licensing regime. It extends the existing 1% turnover tax on land-based bookmakers' activities to online and mobile bookmakers and implements a 15% commission tax for betting exchanges. These measures have had a very positive effect on revenue streams with significant increases being realised. Betting tax revenues have increased by €20 million in 2016 when compared with this time last year.

Both Horse Racing Ireland and Bord na gCon have operated through challenging economic conditions over the past several years and, in that context, the former Minster for Agriculture, Food and the Marine, Deputy Coveney, had the activities and operation of both bodies reviewed. The Horse Racing Ireland Act, which gives effect to the recommendations in the Indecon report, came into force on 8 February 2016 with certain sections commenced on 9 March 2016 and further sections due to commence in January 2017. The Act introduced a range of improvements in governance and accountability arrangements, many of which derive from recommendations made by Indecon consultants following their review of the sector. Indecon International Economic Consultants was also commissioned to conduct a review of certain matters relating to Bord na gCon in order to assess the suitability of the legal, governance and regulatory framework supporting the greyhound industry and to identify opportunities to maximise its commercial income. In this regard, my colleague, the Minister, Deputy Creed, will shortly bring forward the heads of a greyhound industry Bill to ensure the principles of good governance and regulation are clearly and unambiguously laid down in primary legislation. In broad terms, the Bill will seek to address the deficiencies in the existing legislation as identified in a report authored by the Joint Committee on Agriculture, Food and the Marine in January 2016, as well as in the Indecon and Morris reports. The Bill addresses the governance of Bord na gCon, strengthens regulatory controls in the industry, modernises sanctions and improves integrity with a view to building a reputation for exceptional regulation in the sector. The Bill will strengthen the Irish greyhound industry, enable it to deal with the existing challenges and maximise its future potential.

Without doubt, Horse Racing Ireland and Bord na gCon face significant challenges as they work to grow and develop the horse and greyhound industries in an extremely competitive market segment. I am, nonetheless, confident that these industries have tremendous growth potential with sporting, leisure, tourism and cultural appeal across a wide demographic, both national and international. The thoroughbred horse industry is a major driver in the economy and both industries breathe life and jobs into their respective communities from the grassroots up. The €80 million allocation is vital to help secure rural jobs and sustain communities. The Government plays an important role in considering policy and providing an input into legislation to nurture all potential growth. Given that these two industries have their respective footprints in many parts of rural Ireland, I am confident that it is the goal of all of Members present to fully realise the contribution of these sectors to the economy, employment and the social and cultural fabric of this country.

The degree of success of these initiatives is dependent on the hugely important contribution made by the horse and greyhound racing fund. Section 12(13) of the Horse and Greyhound Racing Act 2001 provides that a draft of these regulations must be laid before both Houses of the Oireachtas and a resolution approving the draft be passed by each House before the regulations are made by the Minister. Accordingly, I ask for Members' support to ensure that Horse Racing Ireland and Bord na gCon receive the funding provided for in budget 2017 and that the very important role of these industries and the economic activity generated by them are sustained into the future. I commend the motion to the House.