Aodhán Ó Ríordáin (Dublin North Central, Labour)
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Question 23: To ask the Minister for Agriculture, Food and the Marine if he intends to investigate the current funding criteria for the horse and greyhound industry, taking into account that under the Horse and Greyhound Act 2001, the horse and greyhound fund received €57 million this year and the Irish Sports Council received €25.6 million for 2011; if he will reassess this situation in the interest of equity; and if he will make a statement on the matter. [39223/11]

Simon Coveney (Cork South Central, Fine Gael)
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Under Section 12 of the Horse and Greyhound Racing Act, 2001(No. 20 of 2001), the horse and greyhound racing industries receive financial support from the State through the Horse and Greyhound Racing Fund (the Fund). State funding provided through the Fund is pivotal to the survival of the horse and greyhound racing industries.

The funding provided to both Horse Racing Ireland and Bord na gCon supports these two very important industries and helps to sustain the important role of horse and greyhound breeding and training enterprises in the development of the rural economy. There are a total of 26 horse racing tracks and 17 greyhound racing tracks spread right across the country, owners and breeders are similarly distributed throughout the country. These industries generate very substantial economic activity and make a vital contribution to the rural economy, including farm incomes, and also to the social and cultural fabric of the nation. These are industries in which we as a nation excel.

The funding mechanism, which was established under the Horse and Greyhound Racing Act 2001 Act, has proven not to be satisfactory insofar as it has required an increasing level of Exchequer funding, over the years, due to successive cuts in betting duty coupled with an increasing amount of betting activity migrating to tax free platforms. It is against this background that the Government recently decided to proceed with legislation to amend the Betting Act 1931. This will provide for the extension of the betting duty regime to remote betting. It is the Government's intention that this legislation will be introduced in the first quarter of 2012.

I announced earlier in the week that I will shortly be commissioning an external review of the structures and legislation governing the industry. The 1994 Irish Horseracing Act and the 2001 Horse and Greyhound Racing Act achieved structural reform but I believe the reform now needs to be completed to ensure that governance and administrative procedures are modernised and fully effective in supporting a world-class industry. In taking this action I am acutely aware of the huge effort and commitment given by so many in bringing the industry to where it is today. But now we need to build on this and provide the framework that will facilitate all of us, concerned with the well being of the horse industry, to achieve further progress. I believe that the funding of the sector has to be placed on a more secure footing and I will be including this aspect in the review process.

The horse and greyhound industries are indigenous Irish industries supporting 21,000 jobs across the country, generating approximately €1.4bn in economic output in the economy annually. These industries produce a very good return on the State's investment and are a significant net contributor to the exchequer. They tick all the boxes in terms of employment, foreign direct investment and they are the type of export-orientated industries we need.

I believe the amount provided for in the estimates for the Fund in 2012 is appropriate given the current constraints on the public finances. Issues relating to the funding of the Irish Sports Council are a matter for my colleague the Minister for Transport, Tourism and Sport.