Martin Heydon (Kildare South, Fine Gael)

It is great to have an opportunity in the Seanad to discuss a really important issue. As Senators are no doubt aware, the horse and greyhound industries are an important part of Ireland's economic and cultural heritage. Both sectors help promote balanced economic growth across Ireland, as they provide significant economic and social benefit to rural communities. Their importance has been acknowledged by successive Governments, and they are supported through legislation and policy initiatives.

Exchequer funding provided from the horse and greyhound racing fund plays a crucial role in supporting their continued development. This funding, in addition to supporting these key industries, also presents an excellent opportunity for a strong return on investment. 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. Payments are made from the fund to Horse Racing Ireland, HRI, and to Rásaíocht Con Éireann, RCÉ. Since 2001, a total of €1.8 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 been reached. To give effect to the provisions of budget 2026, this cumulative upper limit must be increased by regulation. The Estimates for my Department, passed by both Houses as part of budget 2026, include an allocation of €99.1 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 €79.3 million, going to HRI, and 20%, equating to €19.8 million, to RCÉ. To allow my Department to provide the moneys allocated in budget 2026, 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 €99.1 million, to some €1.9 billion.This will be achieved by way of the regulations submitted to the House today.

I will now focus a little on each industry, starting with the horse racing sector. The horse racing industry has its roots right across rural Ireland. According to the 2023 Deloitte report on the social and economic impact of Irish thoroughbred breeding and racing, it is estimated that the Irish thoroughbred industry has an annual economic impact of €2.46 billion. This represents a 34% increase from the previous occasion, 2016, on which such an analysis was carried out. The sector also supports approximately 30,000 direct and indirect jobs, the majority of which are based in rural Ireland. The sector has an extraordinary reputation for breeding and racing. Government funding has been a key driver in retaining this status over many years. The Irish racing and breeding industry has been shown to attract in excess of €550 million in foreign direct investment each year.

Irish-trained horses continue to perform exceptionally at international events, including in the UK, France and the USA. Recently, Irish trainers and horses enjoyed remarkable success at the Breeders' Cup in the USA. Aidan O'Brien made history with his 21st Breeders' Cup victory, while his son Donnacha celebrated his first win at the meeting. Willie Mullins also delivered a stunning victory with Ethical Diamond in the grade 1 Breeders' Cup turf, underscoring Ireland's world-class racing excellence. These results once again highlighted Ireland's world-class breeding, training and racing talent on one of the sport's premier weekends.

This success cannot be taken for granted. The welfare of people and animals remains a key priority, as outlined in HRI's current strategic plan. HRI is committed to maintaining the highest standards of care and welfare both on and away from the racetrack. This includes providing supports for organisations, including the Irish Horse Racing Regulatory Board, IHRB, to ensure the health and welfare of all horses. My Department will continue to back both HRI and the IHRB in these efforts.

In the context of the greyhound racing sector, the 2021 Power report highlighted that the industry provides and supports considerable employment across the Irish economy. In 2019, it was estimated to have supported more than 4,000 direct and indirect jobs. The sector's foundation is built on more than 6,000 active greyhound owners. As a long-standing tradition, the greyhound racing industry supports significant economic activity nationwide. Funding for this sector is especially vital for rural Ireland. The industry's future relies on a strong governance platform and on upholding the highest standards of integrity and welfare, supported by a robust regulatory system. Government support is directly contingent on RCÉ guaranteeing annually that these welfare standards are strictly upheld, aligning with the programme for Government commitment to improved animal welfare and traceability. RCÉ remains fully committed to upholding the highest standards of greyhound welfare and integrity. It continues to operate an ever-expanding care and welfare programme, utilising income from the horse and greyhound racing fund for the implementation of the highest possible welfare standards at kennels and racing facilities throughout the country and for rehoming activities.

The ongoing welfare and integrity initiatives operated by the industry are pivotal. The work of RCÉ underscores this commitment, particularly as it conducted almost 2,500 inspections in the past year, the second-highest annual figure on record. I am pleased to report that the industry maintains a zero-tolerance approach to any breaches, demonstrating its commitment to the highest standards. RCÉ is fully committed to developing, managing and promoting a successful and commercially sustainable greyhound racing industry. This industry will offer a high-quality, consumer-focused entertainment product that meets the highest possible international regulatory and welfare standards. It will continue to be proactively governed by my Department.

The programme for Government contains a commitment to supporting rural communities, and these industries continue to contribute to rural economic activity and employment. These two industries are contributors to balanced regional economic growth and both continue to provide a range of benefits for many rural locations. These benefits must not be overlooked. The horse and greyhound racing fund has played a key role in providing this investment and it has been instrumental in the shaping of these industries and the many livelihoods they support.

Following a request from the Committee of Public Accounts, my Department commissioned an external review of the governance of the fund and the bodies in receipt of moneys from it in the context of the current legislative and policy framework. This review has been completed, and a copy of the final report was sent to the committee last week. One of the report's key recommendations is to increase the share of the fund ring-fenced for welfare purposes over the medium term. I assure the House that my Department will work with the bodies to implement this and other recommendations contained in the report in the coming months. Accordingly, I am seeking Senators' support to ensure that HRI and RCÉ receive the funding provided for in budget 2026 and that the important role played by these industries and the economic activity they generate will be sustained into the future.

I commend this regulation to the House. I look forward to listening to the views of Members.