Written answers

Tuesday, 19 July 2011

Department of Agriculture, Marine and Food

Horse Racing Ireland

10:00 pm

Photo of Peter MathewsPeter Mathews (Dublin South, Fine Gael)
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Question 437: To ask the Minister for Agriculture, Fisheries and Food the names of each of the board members of Horse Racing Ireland; the date they were appointed; the date their appointment is up for review; and if he will make a statement on the matter. [21207/11]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The Membership of the Board of Horse Racing Ireland is set out in the following table: Membership of the Board of Horse Racing Ireland

NameDate of current appointmentTerm of Office ends
Mr Denis Brosnan(Chairman) 18 December 200617 December 2011
Mr Michael Hickey 11 January 201110 January 2015
Mr John Moloney11 January 201110 January 2015
Mr Jim Nicholson11 January 201110 January 2015
Mr John McStay6 February 20085 February 2012
Mr Noel Meade6 February 20085 February 2012
Ms Mary O'Connor6 February 20085 February 2012
Mr Bernard Caldwell18 February 200917 February 2013
Mr William Flood 18 February 200917 February 2013
Mr John Power 18 February 200917 February 2013
Mr Joe Hernon18 December 200917 December 2013
Mr. Francis Hyland18 December 200917 December 2013
Mr. Roddy Ryan18 December 200917 December 2013
Mr Noel Cloake10 February 2010February 2014

I appoint the Chairman and the ordinary members of the Board of Horse Racing Ireland in accordance with the provisions set down in the Horse Racing (Membership) Act 2001 whereby specified bodies are required to make nominations for the appointment of ordinary members. The term of office of the Chairman of HRI is 5 years; the term of office of an ordinary member of the Board is 4 years. A member of the Board of HRI cannot serve for more than two consecutive terms.

Photo of Peter MathewsPeter Mathews (Dublin South, Fine Gael)
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Question 438: To ask the Minister for Agriculture, Fisheries and Food his plans to undertake a value for money audit on Horse Racing Ireland's expenditure; and if he will make a statement on the matter. [21208/11]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Following the publication of the four-year National Recovery Plan, a comprehensive review of all expenditure is currently under way in all Government Departments. The purpose of the review is to ensure maximum effectiveness and efficiency in schemes and service delivery. In my Department's case, all expenditure activities are being examined and the outcome of the review will be considered in conjunction with the Department of Public Expenditure and Reform in due course.

Photo of Peter MathewsPeter Mathews (Dublin South, Fine Gael)
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Question 439: To ask the Minister for Agriculture, Fisheries and Food the amount of money his Department has allocated to Horse Racing Ireland each year since 2000; and if he will make a statement on the matter. [21209/11]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Horse Racing Ireland is a commercial state body established under the Horse and Greyhound Racing Act 2001. The State paid no financial support to Horse Racing Ireland (HRI) prior to its establishment in 2001. HRI has a regulatory and developmental role in the thoroughbred industry The functions of HRI as defined in The Horse and Greyhound Racing Act 2001 (in addition to its functions under The Irish Horseracing Industry Act 1994) include: the overall administration of Irish horseracing, the development and promotion of the Irish horseracing industry (including the development of authorised racecourses, the guaranteeing of prize money at race-fixtures and the costs of integrity services), the control of the operations of authorised bookmakers, the allocation of race-fixtures and the setting of race-programmes, the operation of racecourses which are owned or leased by HRI, the promotion of the Irish thoroughbred horse, the making of grants or loans to authorised racecourses and to any subsidiary of HRI, Registry Office functions in accordance with the Rules of Racing, the provision and maintenance of track equipment, representing Irish horseracing internationally in respect of its functions, negotiating all income from media rights, the provision of any financial support for purposes specified in legislation.

The activities of Horse Racing Ireland are very broadly based and encompass all elements of horse racing in Ireland. In addition to the above functions HRI also negotiates contracts in relation to income from Media Rights and represents Irish horseracing internationally in respect of its functions.

My Department provides financial support to Horse Racing Ireland from the Horse and Greyhound Racing Fund (the Fund), which was established under Section 12 of the Horse and Greyhound Racing Act, 2001 (the Act). Monies from the Fund are distributed, in accordance with the Act, between Horse Racing Ireland (80%) and Bord na gCon (20%). The Horse and Greyhound Racing Fund was established at a time when annual income from excise duty collected on off-course betting - the principal funding stream for the Fund - was in the region of €60m per annum. Receipts from excise duty on off-course betting dropped to €31m in 2010. Since 2003 the Fund has been financed by a combination of excise duty on off-course betting and a contribution from the Exchequer. The level of State support provided through the Fund is determined following the approval of a resolution by both Houses of the Oireachtas. The Exchequer contributed in excess of €31m to the Fund in 2009 and a further €28m in 2010.

The Fund has enabled much needed investment in racecourse facilities to take place, making up for a lack of development in the industries over the previous thirty years; it has also ensured that the prize money on offer in Ireland has been sufficient to maintain Ireland's position amongst the top echelons of breeding and racing worldwide, allowing Ireland to develop into a world centre of excellence for horse racing.

The funding provided to Horse Racing Ireland supports and helps to sustain the important role of horse breeding and training enterprises in the development of the rural economy. These industries, together, generate very substantial economic activity and make a vital contribution to the rural economy including farm incomes.

Ireland is the third largest breeder of thoroughbreds in the world. Irish horses and jockeys succeed at the highest level. The bloodstock and breeding industry is an indigenous, sustainable and environmentally friendly industry supporting 17,000 jobs (directly) across the country, generating €0.9bn in economic output annually. Financial support provided through the Horse and Greyhound Racing Fund is critical to its on-going survival. The industry produces a very good return on the State's investment; the industry is a significant net contributor to the exchequer.

At the time Horse Racing Ireland was established, in 2001, responsibility for the thoroughbred horse sector and the administration of the Horse and Greyhound Racing Fund rested with my Department. Responsibility for the sector transferred to the Department of Arts, Sport and Tourism on 18 June 2002 where it remained until 1 May 2010 when it transferred back again to the Department of Agriculture, Fisheries and Food.

Details of the total amounts paid to Horse Racing Ireland from the Horse and Greyhound Racing Fund by both the Department of Arts, Sport and Tourism and my Department over the period 2001 to 15 July 2011 are set out in the table below

Payments made to Horse Racing Ireland from the Horse and Greyhound Racing Fund, 2001- 11

YearAmount (€)*
200147,110,330
200254,452,651
200351,348,800
200453,531,200
200554,680,000
200656,047,000
200758,539,000
200861,028,800
200954,502,000
201047,411,200
201145,830,000

* Figures for 2001-2010 represent payments made from the Horse and Greyhound Racing Fund to HRI. The 2011 figure (€45.83m) represents the corresponding estimate provision for 2011.

These amounts have, since 2003, been financed by a combination of excise duty collected from off-course betting and a contribution from the Exchequer.

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