Mary Upton (Dublin South Central, Labour)
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Question 421: To ask the Minister for Arts, Sport and Tourism the status of the horse and greyhound fund; the amount of funding this received in 2008; if this funding was contributed by the central Exchequer; if a review of the horse and greyhound fund will be initiated; and if he will make a statement on the matter. [32127/08]

Martin Cullen (Waterford, Fianna Fail)
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The Horse and Greyhound Racing Fund was established under the Horse and Greyhound Racing Act, 2001 for the purpose of giving support to both racing industries. Under the provisions of the Act, the Fund receives a guaranteed level of finance based on excise duty on off-course betting in the preceding year, subject to a minimum level based on the year 2000 amount adjusted for inflation. Any shortfall in the amount generated by the excise duty is made up by direct Exchequer subvention. The amount allocated to the Fund is 2008 is €76.29 million, with the shortfall estimated at €39.85 million.

In accordance with the Horse and Greyhound Racing Act 2001, 80% and 20% of the moneys paid into the Fund each year are distributed between Horse Racing Ireland (HRI) and Bord na gCon respectively. Since 2001, income from the Fund has been used by both bodies towards increasing prize money levels, meeting administration and integrity costs alongside a programme of capital investment which has underpinned a growth in both sectors. The rationale of the Fund was that horse and greyhound racing needed certainty in relation to its funding support on a multi-annual basis and that such funding to develop the industries should be derived from the duty generated from off-course betting. Prior to 2001 the Horse and Greyhound Racing Bodies were funded with annual grant-in-aid allocations as well as a fixed fee from off-course betting and 0.3% of turnover from off-course betting.

In 2004, the Government put in place regulations to increase the limit of the Horse and Greyhound Racing Fund from €254m to €550m to continue the Fund for a further four years to 2008. The current round of the Fund is due to expire at the end of 2008. A review of the Horse and Greyhound Racing Fund is currently underway. Any extension of the Fund will require the approval of the Government and the Oireachtas (the level of the Fund is increased by Regulations made by the Minister, with the consent of the Minister for Finance).