Olivia Mitchell (Dublin South, Fine Gael)
Link to this: Individually | In context

Question 365: To ask the Minister for Arts, Sport and Tourism the estimated increase in income accruing to the Horse and Greyhound Racing Fund arising from the increase in the betting tax to 2% in budget 2009. [40622/08]

Olivia Mitchell (Dublin South, Fine Gael)
Link to this: Individually | In context

Question 366: To ask the Minister for Arts, Sport and Tourism the reduction in the income to the Horse and Greyhound Racing Fund which resulted from the decrease in betting tax from 2% to 1%; and if he will make a statement on the matter. [40623/08]

Martin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 365 and 366 together.

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, subject to the limit on the total aggregate amount of the Fund. Any shortfall in the amount generated by the excise duty is made up by direct Exchequer subvention. Therefore, increases or decreases in betting tax receipts do not affect the income to the Horse and Greyhound Racing Fund. For 2009 an amount of €69.719m has been provided for the Fund in my Department's annual estimates.

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.

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.

A review of the Horse and Greyhound Racing Fund is currently underway. Any increase of the Fund limit 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).