Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

I am glad to be here today to discuss this issue. An important pillar of Government policy is to ensure the horse and greyhound racing industries have achieved their maximum potential and, in doing so, contribute to economic and social development across a wide geographic swathe of the country. Those industries make a valuable contribution to our economy. It is estimated the thoroughbred industry has an annual economic impact of €1.9 billion, with direct and indirect employment of 9,000 people, and the greyhound sector provides an estimated 12,000 people with economic benefit. The thoroughbred industry, in particular, brings a high level of international investment into Ireland.

Government funding, in addition to supporting these key industries, presents an excellent opportunity to yield a high return for its investment leading to a flow of income right through the economy, thereby providing widespread benefits to our society.

The Irish equine breeding and racing industry is extremely competitive, as the Members will know, at a global level. We are the third biggest producers of thoroughbred foals in the world and estimates place Ireland only behind the United States in being the biggest seller of bloodstock by public auction globally. Time and again, successive Governments have acknowledged the importance of these industries and have supported them through legislation and policy initiatives. The support provided by public funds through investment in these industries has enabled Ireland to develop a world-class reputation for excellence in horse racing and greyhound racing and in breeding.

The current Covid-19 pandemic poses particular challenges for Horse Racing Ireland, HRI, Rásaíocht Con Éireann, RCÉ, and the industries as a whole. The Government's plan, Resilience and Recovery 2020-2021: Plan for Living with Covid-19, does not provide at any of the levels for a return to full commercial operations. This will impact significantly on the finances of HRI and RCÉ both this year and up to the end of the timespan of the plan in June 2021. It is essential in these circumstances therefore that additional Covid-related supports are made available to HRI and RCÉ, reflecting costs incurred and changes to the trading environment.

These industries 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 Horse and Greyhound Racing Fund to HRI and RCÉ. In the period 2001 to date, a total of €1.36 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 crucial to the survival and continued development of the horse and greyhound racing industries. In order to give effect to the provisions of budget 2021, this cumulative upper limit must be increased by regulation. The Estimates for my Department, passed by both Houses as part of budget 2021, include an allocation of €96 million for the Horse and Greyhound Racing Fund. This will be distributed in accordance with section 12(6) of the Horse and Greyhound Racing Act 2001, with 80% or just over €76 million going to the HRI and 20% or €19.2 million going to RCÉ.

In order to allow my Department to provide the moneys allocated in budget 2021, it is necessary to comply with the technical requirement under section 12(13) of the Horse and Greyhound Racing Act to increase the cumulative limit on the amount payable from the Horse and Greyhound Racing Fund by €96 million to some €1.46 billion. This is achieved by way of the regulations submitted to this House today. The aggregate limit on the Horse and Greyhound Racing Fund has been increased in this manner in 2004 and in 2009 to 2020, inclusive.

Regarding the horse racing industry, the 2017 Deloitte report into the economic impact of Irish breeding and racing, commissioned by HRI, indicates that the total direct and stimulated expenditure of the Irish breeding and racing industry was estimated at €1.84 billion in 2016. In addition, it is estimated that there are 15,200 jobs at the core of the racing and breeding industry or in directly related industries.

Horse racing generates a very significant return to the rural economy in Ireland and a positive international profile for our country. Behind all the facts and figures are the thousands of men and women who, directly and indirectly, make the Irish racing and breeding industry what it is today.

The HRI 2019 annual report indicated another successful year for the Irish racing and breeding industries. The focus on ownership leads to a further increase in the number of horses in training and to more horses competing. There was also an increase of more than 3% in attendance figures for 2019 and an increased demand for Irish horses at the sales, which was welcome, particularly given the uncertainty as a result of Brexit.

As proven in 2020, albeit mostly behind closed doors due to Covid-19, Irish owners, trainers, jockeys and horses are setting high standards globally and their stellar achievements and enduring influence underscore Ireland's international prominence. The Irish equine breeding and racing industry is extremely competitive at a global level, despite other major racing nations having much larger populations and economies.

It is worth noting that Government funding, in addition to supporting this key industry, also presents an excellent opportunity to yield a high return for its investment leading to a flow of income right throughout the economy. Support for certain strategic industries is important for future economic growth and can provide widespread benefits for society, as well as for the wider economy.

HRI has engaged extensively with my Department and other key stakeholders on the significant risks to the industry as a result of Covid-19.It has reviewed a number of scenarios and financial forecasts that have taken appropriate measures to mitigate the financial impact to the organisation and the wider industry. The significant threat posed by Brexit to the current ease of movement of horses between Britain and France, in addition to the global nature of major breeding operations, illustrate that while Ireland arguably now has leadership position within Europe, our pre-eminence is not guaranteed.

On the greyhound racing industry, according to the 2017 Power report, the industry provides and supports considerable employment both directly and indirectly across the Irish economy. It is estimated that in 2016, the industry supported over 5,058 full-time and part-time jobs in the economy. In addition, there are over 7,000 active greyhound owners. The total number of people deriving economic benefit from the sector is estimated at over 12,371. 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 economic activity in what are, in many instances, less affluent regions of the country.

The future of the industry is dependent on a strong governance platform and on the industry having the highest standards of integrity and welfare, founded on a strong regulatory system. Provisions in the Greyhound Racing Act 2019, which came into effect in May 2019, will make a real difference. This legislation strengthens the legal basis for the industry, with a view to fortifying the integrity of the greyhound racing sector and improving provision for greyhound traceability. The new Act will improve the governance of Rásaíocht Con Éireann, strengthen regulatory controls in the industry, modernise sanctions and improve integrity within the sector. It provides the industry with real tools with which it can effect fundamental change and reform. The sections of the Act commenced on 1 October 2020 signal a new era for the greyhound racing sector. They facilitate the board in focusing on its priority objective of achieving the highest standards of care and welfare of greyhounds. The Greyhound Racing Act 2019, when fully implemented, will enable Rásaíocht Con Éireann to ensure the important heritage associated with greyhound racing in Ireland can continue under the appropriate rules and regulations.

The greyhound industry is predominantly a rural industry with a strong urban support base. The Covid-19 crisis has, similar to other sectors of the economy, resulted in a collapse of commercial activity in greyhound racing and a significant reduction of activity generally. Recovery of the industry will require ongoing support to aid restoration of normal levels of activity and to adequately manage the welfare issues that arise. The betting tax was increased from 1% to 2% in budget 2019 and contributes €95 million to the Exchequer as of the 2019 figures.

Given the wide geographic distribution of these two industries, they are fundamental to the achievement of a more balanced regional economic growth. Relieving the burden on our major urban centres and nurturing rural economies is a key priority for the Government. In this context, these industries should be given recognition for the considerable contribution they make to rural economic activity and employment. The welfare of horses and greyhounds is a cornerstone of both industries and I am assured that HRI and RCÉ are striving to ensure the highest standards for the sport and its participants, on and away from the racecourse. The horse and greyhound racing fund has played a key role in providing this investment and has been instrumental in shaping the destiny of these industries.

Brexit poses an array of substantial threats to the Irish economy, and coupled with the fact that we are a small and open economy that is naturally prone to volatility, it is difficult to predict what the future holds. It is therefore crucial that we support these important industries that are facing the perils of Covid-19 and of Brexit as we enter into 2021. Accordingly, I am seeking the support of the House to ensure that Horse Racing Ireland and Rásaíocht Con Éireann receive the funding provided for in budget 2021 and that the important role played by these industries, and the economic activity generated by them, are sustained into the future. I commend the motion to the House, and I look forward to discussing any matters arising.