Written answers

Tuesday, 25 October 2022

Department of Agriculture, Food and the Marine

Horse Racing Industry

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
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751. To ask the Minister for Agriculture, Food and the Marine if he will confirm, in specific terms, the amount that Horse Racing Ireland spent on equine welfare in 2020 and 2021 (details supplied); and the aims, timelines and achievements for those initiatives. [53062/22]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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Horse Racing Ireland (HRI) is a commercial state body established under the Horse and Greyhound Racing Act, 2001, and is responsible for the overall administration, promotion and development of the horse racing industry.

The question raised by the Deputy is an operational matter for HRI and, therefore, the question has been referred to the body for direct reply.

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
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752. To ask the Minister for Agriculture, Food and the Marine the amount in Euros and as a percentage of the horse and greyhound racing fund that was allocated and used for horse racing prize money in 2020 and 2021. [53063/22]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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Horse Racing Ireland (HRI) established under the Horse and Greyhound Racing Act 2001 is a commercial State Body responsible for the overall administration, promotion and development of the horse racing industry.

The horse and greyhound racing industries receive financial support from the State through the Horse and Greyhound Racing Fund (the Fund) as provided for under Section 12 of the Horse and Greyhound Racing Act, 2001. This Department makes payments from the Fund to HRI and to Rásaíocht Con Éireann (RCÉ). This is distributed in accordance with Section 12(6) of the Horse and Greyhound Racing Act, 2001, with 80% allocated to HRI and 20% to RCÉ.

Following Oireachtas approval of the Fund, the Department of Agriculture, Food and the Marine issues a "parameters letter" to HRI advising the body of the allocation from the Fund and the split between current and capital funding distribution. The letter also advises HRI that it must comply with certain conditions in relation to this funding.

These conditions include compliance with obligations under legislation and the various Codes and directives issued by the Government and by the Department.

In relation to the current expenditure allocation, the Department requests that no more than 80% is to be applied for prize money and a minimum of 20% to be applied for integrity services.

The information the Deputy has requested in relation to the amount in euros and as a percentage of the horse and greyhound racing fund that was allocated and used for horse racing prize money for each of the years 2020 and 2021 is detailed below.

Horse & Greyhound Racing Fund

Horse Racing Ireland Allocation for years 2020 to 2021

Current/Capital/Amount contributed to prize money in euros and percentage terms

Year Amount allocated to HRI from Horse and Greyhound Racing Fund (€m) Current Allocation€m Capital Allocation(€m) Amount contributed by HRI to prize money in €m and as percentage of current allocation
2020 67.2 54.1 13.1 35.346 (65)
2021 76.8 61.4 15.4 43.166 (70)

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
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753. To ask the Minister for Agriculture, Food and the Marine if he will confirm the racehorse prize money pool in its totality for 2020; and the percentage and the amount that was returned in direct tax. [53064/22]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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Horse Racing Ireland (HRI) established under the Horse and Greyhound Racing Act 2001 is a commercial State Body responsible for the overall administration, promotion and development of the horse racing industry.

A total of €51.633 million was paid out in racehorse prize money in 2020. HRI contributed €35.346m of this amount with the balance of €16.287m contributed by private sponsors.

The owners of racehorses who earn prize money are not subject to taxation in respect of this income. Racehorse trainers and jockeys are subject to taxation in respect of the proportion of prize money they earn. The taxation that racehorse trainers and jockeys are subject to in respect of prize money is a matter for the Revenue Commissioners.

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
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754. To ask the Minister for Agriculture, Food and the Marine if his attention has been drawn to the fact that Ireland is the only country to give direct annual financial support to racing from tax payers’ money, compared to other major thoroughbred racing and breeding nations; the reason that the Government has allocated €72.8 million for 2023 to racing given that this is a lucrative, predominantly private industry, in a free-market economy which should be able to support itself; and if he will make a statement on the matter. [53065/22]

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
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755. To ask the Minister for Agriculture, Food and the Marine his views on whether the €72.8 million that is provided to the racing industry would be better spent on public health and public education, in a time of prudent fiscal management (details supplied). [53066/22]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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I propose to take Questions Nos. 754 and 755 together.

The horse racing industry makes a valuable contribution to our economy. It is estimated that the thoroughbred industry has an annual economic impact of €1.84 billion with direct and indirect employment of 29,000 people.

The wide geographic distribution of this industry contributes to the achievement of more balanced regional economic growth and rural economic activity, providing a wide range of employment and income opportunities, from stable staff, trainers and jockeys to breeders.

The support provided by public funds through investment in this industry has enabled Ireland to develop a world class reputation for excellence in horseracing racing and breeding. Horse racing in other major racing jurisdictions is also funded by Government, directly or indirectly.

The Irish equine breeding and racing industry is extremely competitive at a global level. We are the third biggest producer of thoroughbred foals in the world and estimates place Ireland only behind the United States as the biggest seller of bloodstock by public auction globally.

Successive Governments have acknowledged the importance of this industry and have supported it through legislation and policy initiatives.

The horse racing industry receives financial support from the State through the Horse and Greyhound Racing Fund, under the Horse and Greyhound Racing Act, 2001. The Department makes payments from the Fund to Horse Racing Ireland (HRI), the commercial state body established under the Horse and Greyhound Racing Act, 2001, responsible for the overall administration, promotion and development of the horse racing industry.

In Budget 2023 an allocation of €70.4m million has been provided for HRI, subject to Oireachtas approval.

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