Emmet Stagg (Kildare North, Labour)
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Question 68: To ask the Minister for Arts, Sport and Tourism if he has been lobbied with regard to the increase in betting tax from 1% to 2%; the recommendations he gave to the Department of Finance on this issue; and if he will make a statement on the matter. [8532/09]

Seán Sherlock (Cork East, Labour)
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Question 69: To ask the Minister for Arts, Sport and Tourism the amount the horse and greyhound fund is receiving in 2009; the amount of money it makes via a tax on betting; the funding shortfall which is met by central Exchequer funding; his views on whether this is the best use of finite funding for sports; and if he will make a statement on the matter. [8533/09]

Martin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 68 and 69 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 has, from 2001 to 2008, received a guaranteed level of finance each year. This was 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 was made up by direct Exchequer subvention. €69.6m has been allocated to the Fund for 2009. Both industries proposed that an increase on the rate of betting tax would obviate the need for exchequer funding to be provided to supplement the current take from the 1% betting tax take on off course betting. I indicated to the Minister for Finance that I supported that proposal and as the Deputy will be aware the rate of betting duties is being increased to 2% with effect from 1st May 2009. This will bring the funding of the industries more into line with international practice.

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 the mechanism for such certainty should be 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 0.3% of turnover and a fixed fee from off-course betting.

Section 12(6) of the Act specifies that, of the moneys paid into the Fund each year, 80% shall be paid out to Horse Racing Ireland (HRI) and 20% shall be paid out to Bord na gCon (BNG).

Funding of both of these agencies supports two very important productive industries and helps to sustain the important role of horse and greyhound breeding & training enterprises in the development of the rural economy. These industries, together, account for an estimated 27,500 direct jobs, generate very substantial economic activity and make a vital contribution to the rural economy including farm incomes. The funding given to the greyhound racing sector helps in sustaining a tradition that has existed for hundreds of years and in underpinning the economic activity in what are in many instances less affluent regions of the country.

Since the establishment of the Fund a period of major development of both the horse and greyhound racing industries has resulted.

This funding has allowed Ireland to develop into a world centre of excellence for horseracing. Horse Racing Ireland has undertaken a capital investment programme that has underpinned growth in the sector.

The Fund has also contributed significantly to the almost €90 million that has been invested in the improved facilities now available at greyhound tracks around Ireland.

A review of the Fund is nearing completion and will be submitted to the Government in due course in the context of deciding on the future funding of these industries. Any extension of the Fund will require the approval of the Government and the Oireachtas.

Revenue receipts through excise duties, and projections of same, are a matter for my colleague, the Minister for Finance.

I would also refer the Deputy to my answer to priority question number 43 which I answered earlier today.