Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

I apologise for the delay but I had to attend a Cabinet sub-committee meeting.

An important pillar of Government policy is to ensure that the horse and greyhound racing industries achieve their maximum potential and in so doing, contribute to economic and social development over a wide geographic distribution. The horse and greyhound racing industries make a valuable contribution to a balanced regional economy. It is estimated that the thoroughbred industry has an annual economic impact of €1.84 billion, with direct and indirect employment of 29,000 people. The greyhound sector benefits an estimated 10,000 people. 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. Support for strategic industries is important for future economic growth and can provide widespread benefits for our society and our economy.

The Irish equine breeding and racing industry is extremely competitive at a global level and is a real beacon of excellence. We are the third biggest producer of thoroughbred foals in the world. Estimates place Ireland behind only the US as the biggest seller of bloodstock at public auction globally. 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, greyhound racing and breeding.

The horse and greyhound racing 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 fund to Horse Racing Ireland, HRI, and to Rásaíocht Con Éireann. In the period 2001 to date, a total of €1.46 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 regulation has been reached, as per the Estimates from my Department. Exchequer support for the fund is crucial to the survival and continued development of both industries. In order to give effect to the provisions of budget 2022, the cumulative upper limit must be increased by regulation. The Estimates from my Department, passed by both Houses of the Oireachtas as part of budget 2022, include an allocation of €88 million for the Horse and Greyhound Racing Fund. This will be distributed in accordance with section 12(6) of the 2001 Act, with 80%, or €70.4 million, going to HRI and the remaining 20%, or €17.6 million, going to Rásaíocht Con Éireann.

In order to allow my Department to provide the money allocated in budget 2022, it is necessary to comply with the technical requirement under section 12(13) of the Act to increase the cumulative upper limit on the amount payable from the Horse and Greyhound Racing Fund by €88 million to €1.54 billion. In essence, we propose to provide €88 million this year and under the regulations we must increase the overall ceiling of the fund by that amount to facilitate payment. That is what is being achieved by the regulation before the House. This regulation has already been discussed and passed in Dáil Éireann. The aggregate limit on the Horse and Greyhound Racing Fund has been increased in this manner in 2004 and 2009 to 2021, inclusive.

A 2017 Deloitte report on 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 is an estimated €1.4 billion, based on 2016 figures. In addition, there are 15,200 jobs at the core of the racing and breeding industry and directly related industries.The Covid pandemic has had a significant impact on all areas of the industry, especially racecourses and attendance. The number of horses in training, owners, runners, fixtures and races have all had strong growth this year compared with the corresponding pre-pandemic figures in 2019. The importance of a strong welfare and integrity foundation to this highly successful industry is crucial and well-recognised throughout the industry. My Department and I will continue to work with HRI, the Irish Horseracing Regulatory Board and other relevant stakeholders to ensure that the highest standards of integrity and welfare are maintained. The report of the Joint Committee on Agriculture, Food and the Marine on integrity in horse racing issued earlier this month. Senators Paul Daly and Boyhan played a significant role in developing it. I am examining that report in detail and fully considering its findings.

The EU-UK Brexit trade agreement reached in December last year, which included the Northern Ireland protocol, was a welcome development. It should be noted that challenges remain regarding certain movements of horses, with the global nature of major breeding operations. While Ireland arguably now holds a leadership position in Europe, its pre-eminence is not guaranteed.

I will touch on the greyhound racing industry. According to the 2021 Power report, the industry provides considerable employment, both directly and indirectly. It is estimated that, in 2019, it supported more than 4,000 full-time and part-time jobs in the economy, with 6,000 active greyhound owners. The funding provided to this sector through the fund helps to sustain a long-standing tradition, as the industry is part of the social fabric in the country. This funding underpins economic activity in rural areas in particular.

The industry is committed to continuing to strengthen welfare standards, which are important and have been central to the objectives and work of Rásaíocht Con Éireann. I support this continued pursuit of improvement. Future funding of the sector is contingent on welfare standards being upheld and it is reflected in the annual parameters set out by my officials in their liaison with Rásaíocht Con Éireann. The Greyhound Racing Act 2019 came into effect on 28 May 2019. It strengthened and made a difference in this regard.