Seanad debates

Wednesday, 29 November 2017

Horse and Greyhound Racing Fund 2017: Motion

 

10:30 am

Photo of Michelle MulherinMichelle Mulherin (Fine Gael)
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I move:

That Seanad Éireann approves the following Regulations in draft:Horse and Greyhound Racing Fund Regulations 2017,copies of which were laid in draft form before Seanad Éireann on 13th November, 2017.

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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The horse and greyhound racing industries occupy a key position in the Irish sporting and social landscape and we as a nation have a strong affinity not just with racing but with the social scene at its core.

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. The Department of Agriculture, Food and the Marine makes payments from the fund to Horse Racing Ireland and to Bord na gCon.

In the period 2001 to date, a total of €1.12 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 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.In order to give effect to the provisions of budget 2018, this cumulative upper limit must be increased by regulation. In order to allow my Department to provide the moneys allocated in budget 2018, 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 €80 million to some €1.2 billion.

The recent Deloitte report commissioned by Horse Racing Ireland indicates that the total direct and stimulated expenditure of the Irish breeding and racing industry is estimated at €1.84 billion in 2016. The core industry comprised €914 million of this, with secondary expenditure the remaining €927 million. 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.

The achievements of Irish bred and Irish trained horses abroad, and the enduring influence of Irish born jockeys and stable staff, underscore Ireland's global prominence. We hold the distinguished position of being the third highest producer of foals, coupled with having the third highest number of active broodmares in the world. Government funding is crucial in order to maintain and build on our position as one of the world's leading breeding and racing nations. Government funding of this key industry is an excellent opportunity to yield a high return for its investment, leading to a flow of income right through the economy . Support for certain strategic industries is important for future economic growth and can provide widespread benefits for our society as well as for our economy.

The greyhound industry is a significant industry for Ireland. It has been embedded in Irish society for decades and is an important activity from an economic, social and cultural perspective. It provides and supports considerable employment directly and indirectly across the country. The Irish greyhound sector has come through challenging times during the economic recession, but it continues to make a significant economic and financial contribution to the Irish economy, particularly at a local level. The Bord na gCon annual reports indicate that despite a severe recession the industry is recovering, showing an increase in operating surplus in 2015 and again in 2016.

Funds generated from greyhound racing are re-invested in the industry through contributions to prize money and grants to various bodies involved in the greyhound racing and breeding sector, as well as the promotion of greyhound welfare and the regulation of the industry. It has also contributed significantly to the improved facilities now available at greyhound tracks around Ireland. Greyhound racing is an activity which 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 base.

The Horse Racing Ireland Act 2016 introduced a range of improvements in governance and accountability arrangements, many of which derive from recommendations made by Indecon Economic Consultants following their review of the sector. It 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 response to the recommendations made in the Indecon and Morris reports and the report prepared by the Joint Committee on Agriculture, Food and the Marine, I have introduced a draft general scheme of the greyhound industry Bill. 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.

As the House is aware, the draft general scheme of the Bill has progressed through the pre-legislative scrutiny phase and it is hoped that a memorandum will go to Government in the coming weeks requesting approval to publish the updated general scheme and to submit it to the Office of Parliamentary Counsel for drafting. The Bill will bolster the Irish greyhound industry, enable it

to deal with existing challenges and maximise its future potential.

I am sure we are all in agreement that more balanced regional economic growth is desirable and this is a key priority for Government. In this context, these industries should be given recognition for the considerable contribution that they make to rural economic activity and employment. The important contribution made by the horse and greyhound racing fund since its inception in 2001 has been vital to ensuring that these industries can continue to invest in their infrastructure.

Section 12(13) of the Horse and Greyhound Racing Act 2001 provides that a draft of these regulations 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 am asking Members for their support to ensure that Horse Racing Ireland and Bord na gCon receive the funding provided for in budget 2018 and that the very important role played by these industries, and the economic activity generated by them, are sustained into the future. I commend the regulation to the House and I look forward to discussing any matter arising.

Photo of Gerard CraughwellGerard Craughwell (Independent)
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I neglected to welcome the Minister to the House before he spoke, so I will take this opportunity to do so. I thank him for being here.

Photo of Paul DalyPaul Daly (Fianna Fail)
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I also welcome the Minister to the House. I would like to take this opportunity to extend my personal sympathies and those of my party on the death of his father over the weekend.

The Horse and Greyhound Racing Fund Act was introduced by Fianna Fáil in 2001. While I welcome the Bill and will support it, the amount of money being invested in both industries could be increased. I ask that we return, in some way, to the model which was introduced, whereby the fund provided annually was based on the off-course betting income levy of the previous year. Due to the fact that the levy decreased during the economic crisis, there is a net cost to the Exchequer over and above the betting intake. I ask the Minister and his colleagues in the Department of Finance to address gambling legislation, in particular the potential income from online offshore gambling. If and when that is done, the Minister should bear in mind that activity takes place online. We could bridge the gap and increase the money being paid to Horse Racing Ireland and Bord na gCon.

In so doing, the Minister would have to be cognisant of pitch and independent high street bookmakers who are, to coin a phrase, a dying race. Those of us who attend race meetings know that pitch bookmakers and the betting ring are an integral part of the experience. They are in competition with the online sector, and it is possible that they will not survive. While I seek an increase in the intake on the batting side, I would be fearful for their future. In examining that, I would like the Minister to come up with a device to incentivise that sector of the betting industry. We need to try to bridge the gap and eliminate the net cost to the Exchequer arising from the difference between online betting income and the horse racing and greyhound fund.

Some people have queried why we would allocate a significant amount of money to a sport. As the Minister rightly said, it is a thriving industry and one which is predominantly based in rural Ireland. The horse racing and greyhound sectors between them have created in the region of 25,000 jobs. The combined direct and indirect income from the industry, including tourism and attendance at race and greyhound meetings, is €2.34 billion. As the saying goes, one has to speculate to accumulate. It is a very worthwhile investment from the point of view of the Exchequer, given that the return is €2.34 billion.

We congratulate ourselves on and gloat, to an extent, about our enormous international success. I take this opportunity to congratulate Aidan and Joseph O'Brien and Willie Mullins on their recent success in the Melbourne Cup. There are people in the sector who reach that peak. However, this fund keeps those at the bottom of the pyramid going. Without a conveyor from small two, three and four brood mare breeding outfits and small training yards with a small number of horse, smaller racetracks such as Kilbeggan, in which I am involved, would not survive. I have no doubt that a Senator on the other side will take the opportunity to mention Ballinrobe in her contribution. Provincial race tracks and small breeding outfits depend on the fund the most. Without their survival, we would not have a conveyor of horses coming through and young jockeys, who dream of and hope to reach the top of the spire, would not be trained. It is a very worthwhile investment in an industry which is an integral part of our make up.

As I said at the outset, I would like the fund to be increased, which can be done at no extra cost to the Exchequer.We are all fearful and wary of Brexit because we have no idea what way it is going to go. There is every possibility that this industry is going to need more funding just to sustain itself, not to mention improving. As the saying goes, the day one stands still is the day one starts going backwards. We do not know what Brexit will bring. This is an all-island industry and its other main source of income is the sale of media rights which is done in sterling. The industry may need extra funding just to survive and we must be cognisant of that fact.

The Minister mentioned the greyhound industry Bill and I would urge him to get it approved by Cabinet and into motion as soon as possible. We are all very aware of the political circumstances in which we found ourselves last weekend. While the aforementioned Bill may not have been a priority for many in terms of what would be thrown out with the bath water, it is legislation that would have ended up on a shelf for God knows how many more months. I would urge the Minister to get that Bill through Cabinet and before the Houses as soon as possible because it is a very necessary instrument for the greyhound industry going forward, particularly in terms of improving and enhancing governance, administration and animal welfare.

In conclusion, Indecon produced a report on harness racing and a request has been made for seed funding. I would like the Minister to address that matter. I would also ask for additional funding for that going forward. Contrary to everything I have said to date, I would not like to see the Minister divide the existing funding three ways. Several issues came up during the debate which were unrelated to the Bill but which require the Minister's attention including employment law and rate valuation. While we are funding an industry here, there are other arms of the State trying to take money back from it and to disimprove conditions within it. The Minister will probably not be able to comment because of WRC issues and so forth but I would like him to keep an eye on where the line is drawn in terms of when a farming activity stops becoming a farming activity in the context of rates and employment law.

Photo of Brian Ó DomhnaillBrian Ó Domhnaill (Fianna Fail)
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Like my colleague Senator Daly, I would like to begin by offering my heartfelt condolences to the Minister on the death of his father, Donal Creed, who I understand served as a Member of Dáil Éireann for 22 years. Former Deputy Creed passed away last week and his funeral took place on Monday. It is remarkable that the Minister is here, serving his country in the Houses of the Oireachtas this week. I ask him to accept my deepest sympathies at this time.

The motion before us this evening refers to the horse and greyhound racing fund which is an important source of revenue for the horse racing industry and the greyhound sector. The horse racing industry is crucially important to the economic output of the Irish economy and to our international footprint. The sector has been transformed through legislation brought before the Oireachtas in recent years to develop the industry. The achievements are quite remarkable and the value for money derived from the investment in the horse racing sector is unquestionable. Sadly, however, at the other end of the spectrum, the greyhound sector leaves a lot to be desired. I had the pleasure this afternoon of meeting the new CEO of the Irish Greyhound Board, Mr. Gerard Dollard, who is a gentleman and I wish him well. I hope he will listen to the grassroots and that the sector can move forward. There are critical issues within the sector that deserve attention, not least the issues of standalone funding and transparency and accountability in terms of how the money is being spent.

Approximately €16 million of the horse and greyhound racing fund will go to the greyhound sector next year. That amounts to just over €300,000 per week to the Irish Greyhound Board. Irrespective of the amount of money involved, crucial questions from ordinary greyhound breeders and owners remain unanswered. I have confidence however, following my meeting with him this afternoon, that the new CEO is willing to engage and to listen, which I very much welcome. The greyhound industry has the potential to be a standalone sector, even without this subvention from the Government although I am not suggesting for one moment that the subvention should not be provided. The industry will struggle to reach its full potential, however, given what is happening at the moment. We have 16 stadia, some of which are in the process of being taken over by the banks, including one in Lifford in County Donegal. Of the 16 stadia, eight are owned by the Irish Greyhound Board and the remainder are privately owned. There is a real need to improve the corporate governance of Irish Greyhound Board by improving transparency, communications and accountability in order to realise the full potential of the sector. One of the ways of doing that is through the greyhound industry Bill, which is due to come before these Houses shortly. I would appeal to the Minister in the strongest possible terms to bring that Bill before these Houses as quickly as possible. I have not read the Bill yet and will reserve judgment on it. If I feel the need, I will certainly propose amendments to it but it can provide the roadmap for transforming the industry and breathing fresh air into it.

The Minister of State at the Department of Agriculture, Food and the Marine, Deputy Andrew Doyle did an excellent job when he was Chairman of the Oireachtas Joint Committee on Agriculture, Food and the Marine. I served on that committee which met all of the interested stakeholders within the greyhound sector. The committee published a report containing 16 different recommendations and I hope those recommendations will be provided for in the aforementioned Bill.

There are very serious issues around drugs within the greyhound sector. One of the greyhound trainers who was fined after a dog tested positive for a prohibited substance earlier this year was awarded the Greyhound review's personality of the year recently. I do not think that sends out the right message in the context of either transparency or integrity. Given that all of this is happening and given that so much of the funding goes directly to the organisation, there is an urgent need to review what is going on. I could cite many examples in the House this evening of concerns with regard to artificial insemination and illegal dogs continuing to run at various meetings all over the country. These issues must be addressed.

Photo of Michelle MulherinMichelle Mulherin (Fine Gael)
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I welcome the Minister to the House. I also offer my condolences to him and his family on the loss of his father, Donal Creed. We all know that whatever one's personal circumstances, politics just keeps rolling on and does not stop for anything, even significant personal events that can happen in our lives. I offer the Minister my sympathies today.

It is very appropriate that we are here to talk about the €80 million in funding that has been provided in budget 2018 for our horse and greyhound racing industries and to talk about the contribution they make to local economies, which is particularly critical in rural areas, as well as to the national economy. We can look back over many generations, where people lived hand to mouth and many could not afford to own a horse for racing, but Irish people had a passion for horses, dogs and other animals. It is a long tradition which is not just for kings and queens but also for the ordinary person. Today we have a fully fledged industry which is very labour intensive and provides significant employment in areas where it is difficult to encourage employment. The breeding of horses and dogs contributes to the industry. It is not only Irish people who attend races but also tourists. Particularly in horse racing, our animals are renowned as thoroughbreds and are very desirable in international markets. It is only right that we invest in the industry, which in effect means investing in our people and economy.

As we are investing considerable funds in both greyhound and horse racing, it is important that there is accountability, the buzzword of this week, in all financial matters. I note that the Horse Racing Ireland Act gave effect to the Indecon report which modernised the horse racing industry in its accountability to Government. Now we are set to follow suit with the implementation of the Indecon and Morris reports with the greyhound industry Bill, which I hope deals with concerns raised by Senator Brian Ó Domhnaill. Nobody can stand over money being spent where it should not be. There are issues around animal welfare. We can have both, but there have to be standards and we must implement them. Just because there might be issues around animal welfare does not mean that an entire industry should be shut down. We have to get the balance right, but we must be tough on those who abuse animals, and that involves people coming forward to point it out.

As my colleague across the House rightly pointed out, I would like to acknowledge that at a local level I see people who love their dogs and horses. The race meetings at Ballinrobe racecourse are a great source of local pride, they are very social occasions and it is a tonic to get out to on an evening and meet people. It is a home-grown leisure amenity. I commend the people who run it. I know these funds are critical to their ongoing work and expansion. They do their best to bring people into the local area and make the most of it for the local economy. It is very worthwhile and I am glad to see Government and Opposition supporting the objectives we have before us this evening.

Photo of Pádraig Mac LochlainnPádraig Mac Lochlainn (Sinn Fein)
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We had an opportunity to discuss this matter in the Committee on Agriculture, Food and the Marine when I raised my concerns relating to the Irish Harness Racing Association. I acknowledge that the Minister is supportive of what it is trying to do and his comments at the committee, which I appreciate. I know that, because of the part of the country that the Minister comes from, he recognises the potential of all this. However, the difficulty is that the motion before us relates to funding for the horse racing and greyhound industries. I see it as related to the Irish Harness Racing Association. I am mindful of the Indecon report which was published during the year. The Minister told the committee that the Department would need a five-year strategic plan, assurances around corporate management and so on, before money could be released, and I appreciate that, but there is a chicken-and-egg problem here, or perhaps one of putting the cart before the horse, on sequencing. The harness racers need seed funding.

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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It is a sulky.

Photo of Pádraig Mac LochlainnPádraig Mac Lochlainn (Sinn Fein)
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Yes. They require seed funding to do what the Minister has asked of them. If corporate management and structures were not right, the Opposition would be the first to complain and challenge the Government and the Department, so the Minister must do those things and receive assurances that the money will be spent properly. I have no doubt that the Irish Harness Racing Association wants to do that. It just needs financial assistance. I am taking this opportunity to ask once again for the Department to release seed funding to allow the association to put those structures in place and then be in a position to draw down the capital funding required to allow it to develop its potential. The Minister will know that significant investment is coming in from France and elsewhere, there is a real interest in the Irish product.

Unfortunately, it is a sport that has drifted over the years from what it was in Ireland, but it would be wonderful to bring it back again. There are high-calibre, very committed people who are currently volunteers but who want to step up. I ask the Minister if he and his Department, in a collaborative and facilitative way, could work with them on this. I would like to see the funding which they seek released in 2018. I have said so here and at the agriculture committee. That committee, on an all-party basis, has been very supportive of the Irish Harness Racing Association's potential for several years, and its support in the previous Dáil was what led to the Indecon report being commissioned.The agriculture committee continues to support it on an all-party basis, so this is not a plea from myself personally but collectively from all its members.

I am concerned about problems around alleged doping in the greyhound industry. Sadly, I must raise the matter of Clonbrien Hero. It is a disturbing debacle when The Washington Post writing about it. The trainer of Clonbrien Hero is Graham Holland. According to a report in The Sunday Times earlier this year, five greyhounds tested positive for traces of pentobarbital, a banned substance. It seems that there was not clear guidelines from the Irish Greyhound Board on dog feed and the owner was cleared. One could argue that it was a loophole, and that is the impression that I got from media reports.

The same trainer has a champion dog that has won everything. The Minister will be familiar with it having presented it with the laurel in his official capacity. It has cleaned up. It is a champion dog. It has become an international story because the same trainer is connected with this dog which has failed three drug tests, including when it won the event that the Minister had attended. The excuse that was given was that cocaine can pass from cash onto hands, following which someone might pet a dog, an idea absolutely rubbished in The Washington Post report. It said that it was nonsense that those levels of cocaine might come from any denomination of note into the bladder of a dog. There are serious issues.The Irish Greyhound Owners and Breeders Federation has raised questions about this issue, about which it has written extensively. I will wrap up on this point and I thank the Acting Chairman for his patience. The federation, which is trying to clean up the sport of greyhound racing, have made serious criticisms of Bord na gCon's lack of success in tackling doping. We should ask more of the Irish Greyhound Board when the champion dog - it is actually bitch - has been found in this position and such question marks are hanging over the industry. The Oireachtas is again releasing substantial public funding to greyhound racing industry and we debated this issue last year.

I appreciate the point made by colleagues who spoke of the financial return made by the horse and greyhound racing industries and our pride in the horse breeding sector. That is a fair point but we have a serious doping problem in the greyhound industry. The Government must confront the problem and we must demand better outcomes. It is deeply embarrassing to have The Washington Postand other international newspapers reporting on the issue. It is making a laughing stock of the industry and bringing down wonderful people involved in it. The members of the Irish Greyhound Owners and Breeders Federation are decent greyhound owners and breeders who want this issue addressed. We need to sort it out.

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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I thank Senators who spoke on the motion before the House. I will first deal in summary with the broader greyhound issues. In 2016, a total of 5,387 analytic samples were taken from greyhounds, of which 48 resulted in a positive test. In my view, this is 48 too many positive tests. There are, however, issues around the interpretation of results in terms of levels, circumstances and context. I do not propose to go into this issue, nor do I intend to comment on any specific case or media coverage of these matters. There are media outlets which are entirely hostile to the greyhound industry and will avail of every opportunity to denigrate it. It is important to put this issue in context. It is relatively small and receives disproportionate media coverage. As I stated, however, 48 positive tests are 48 positive tests too many.

One of the objectives of the forthcoming legislation is to provide a new regulatory statutory framework for the greyhound racing industry. I hope the legislation will be approved by the Government before the end of the year and debated in the Houses early in 2018. It will deal with integrity and governance in the greyhound industry, other issues and the current inadequate statutory structures. Significant heavy lifting was done by the joint committee in the pre-legislative scrutiny stage and this work has been taken on board and will be reflected in the Bill. As the legislation passes through the House, I hope it will be improved through the input of Members.

I do not want a message to go out that this industry has a problem that is out of control. The figures I cited - 48 positive results out of 5,387 tests in 2016 - give an indication of the extent of the problem. A question also arises regarding the subsequent interpretation of the 48 positive results, although I do not propose to comment in detail on that issue.

I acknowledge Senator Paul Daly's broadly positive comments on the motion and proposed funding. I also take his point that we would like to further increase funding for the industry, which will not increase compared with last year. However, it must also be borne in mind that the allocation was increased by €6 million in each of the preceding three years. We have, therefore, had three successive years of substantial funding increases for the industry. In the context of a difficult budgetary position, funding for 2018 will remain at the same level as in 2017. I am satisfied that the funding provided is adequate.

In the broader equine sector, we have proposed increased funding for the sport horse sector, an area of the industry that shows significant potential. This funding follows the implementation of the recommendations on governance set out in the Indecon report. I will speak in a moment on harness racing. There is good reason to be optimistic that the sport horse sector can make further progress on the basis of the analysis done by Indecon.

The equine industry is an all-island industry and Brexit brings a degree of uncertainty as to how it will develop. We have had considerable engagement with the sector on Brexit matters, the all-Ireland nature of the sector and the tripartite governance between Ireland, the United Kingdom and France on the movement of horses, etc. It is a cause of significant concern and one that we have brought to the attention of the Barnier negotiating team.

I also note Senator Daly's observation on matters currently before the Workplace Relations Commission. We retain an interest in and watching brief on these matters. I am conscious that this issue could have an adverse impact on the sector generally but particularly on smaller yards and training and breeding establishments. We await the outcome of the WRC's deliberations.

Senator Mulherin referred to animal welfare, which is one of the issues that will be part and parcel of the new legislation. There will be improved standards in greyhound welfare. Adverse publicity can be expected on all animal welfare issues. My Department is working with and providing significant funding to a variety of animal welfare organisations. I propose to increase this funding next year and allocations in this area will be made shortly. There will be no hiding place in my Department on animal welfare issues. The law in this area has been improved significantly to ensure people who are guilty of animal welfare abuses are dealt with.

Senator Paul Daly referred to Kilbeggan race course and Senator Mulherin referred to Ballinrobe race course. Both Senators will be aware that a programme of improvements in capital investment in racecourses is under way. Unfortunately, while I have passed Kilbeggan on recent visits to Senator Daly's part of the country, I have not yet visited the town's racecourse. That is a treat that awaits me.

Photo of Paul DalyPaul Daly (Fianna Fail)
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The Minister has an open invitation.

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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I have, however, seen the investment being made in other racecourses. Improving facilities at racecourses is critical to punters and the welfare of horses.

I also take Senator Daly's point that greyhound and horse racing meetings would be much the poorer if we were to lose the colour associated with on-course bookmakers. While I am aware that issues have arisen between on-course bookmakers and Horse Racing Ireland, I am led to believe these have been substantially resolved. I hope that is the case because the tracks would be rather colourless if we were to depend entirely on tote betting and online betting, with fellows placing bets on their mobile phones and so on. We need to be conscious of this issue.

On harness racing, I dealt with this matter and I appreciate the issue raised by Senator Mac Lochlainn. I have met the organisation to which the Senator referred and I understand what it wishes to achieve. The Indecon report makes clear what road needs to be travelled. This destination cannot be reached overnight, however, and I appreciate it is a challenge for the organisation in question.

In terms of the disbursement of public funds, we must ensure the organisation is fit for purpose. I believe it will get to that point but it will take time for it to establish itself, meet corporate governance requirements, produce a five-year strategy, etc.We will work with them. I have made this point to them and my Department's door is open to them in terms of guidance and advice. We are increasing the funding available under a pilot programme that we have run with them up to now as a symbol of our goodwill. We will work with them to get them to where we want them to be because we see public gain to be had as well from being able to work with the Irish Harness Racing Association. This is not just to achieve the potential of the sector, which is undoubtedly significant and untapped at the moment, but also the issues of horse welfare and sulky racing on public roads. A proper competitive structure that can deal with that in an appropriate setting rather than on public roads where it is unauthorised in many instances and ungoverned, would be beneficial to everybody.

I hope I have not missed anything. I appreciate the points made by Members and I will reflect on those that are not specifically germane to the motion. I thank the Members for their support of the proposal.

Photo of Tim LombardTim Lombard (Fine Gael)
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I thank the Minister.

Question put and agreed to.