I move "That the Bill be now read a Second Time."
As Members are aware, the Minister for Finance when announcing increased betting charges in his budget speech in January last explained that this would entail an amendment of the Racing Board and Racecourses Act, 1945. The present Bill will enable the Racing Board to charge a maximum levy of 10 per cent on course bets with bookmakers: the actual levy chargeable will as up to now be subject to the approval of the Minister for Finance. I understand that it is the Racing Board's intention only to increase the levy by 1 per cent. This information is being conveyed to representatives of the bookmakers' organisations. The Bill also provides for an appeal committee to which bookmakers may appeal from decisions of the Racing Board to refuse, suspend or revoke course betting permits. It contains a number of other amendments which I will discuss later.
At the outset I should like to refer briefly to the bloodstock industry, an industry which according to recent estimates represents a total investment of more than £75 million in this country. Ireland has the soil, climate and other natural resources perfectly suited to bloodstock. I am glad to say that by using these resources to the full, by selective breeding and the dedicated management and enthusiastic interest of the many people associated with the industry we have gained a well-deserved and world-wide reputation for top-quality stock.
The total number of bloodstock in the country at present is estimated at 20,000, the number of horses in training is 4,600 and the annual attendance at race meetings is almost one million. Total sums staked with bookmakers at horse races increased from £11.8 million in 1970 to £18.4 million or slightly more in 1974. In the same period the amount staked on the totalisator increased from £4.4 million to £5.8 million. Total prize money at Irish races was £1.4 million in 1974. In the coming year it is likely to increase to £1.75 million.
The bloodstock industry is making a significant contribution to the economy, giving valuable employment, enhancing our export trade, promoting tourism and giving us a justifiable pride in the reputation of the Irish horse throughout the world. At the same time one cannot be complacent. We must exploit the great potential of the industry and ensure that it can compete with growing competition from other countries. Hence the constant need to provide high quality stock and management, attractive racing with better prizes and better amenities for patrons.
I should like to turn now to the Racing Board which down through the years has played a useful and progressive part in Irish racing. As many Deputies are aware, the board was set up in 1945 as a State agency to promote horse breeding and horse racing. Indeed, when it was being discussed in this House at the time there were many reservations expressed not only by some Members of the House but by representatives of the bookmakers and other interests who were apprehensive about the proposals in the Bill. I am glad to say that those of us who supported the Bill and advocated its enactment at the time from both sides of the House have had our views confirmed by the success which has attended the efforts of the board in the meantime and, indeed, in discussions with representatives of the Bookmakers' Association, they acknowledge that it has made a significant contribution to the industry. In co-operation with other racing bodies the board were charged with the task of identifying the needs of the industry and, at the same time, to impose betting charges on the racegoing public and redistribute the proceeds for the general benefit of the industry.
As Deputies are aware the board have 11 members appointed by the Minister for Finance in consultation with the Minister for Agriculture and Fisheries. Members have to be associated with bloodstock breeding, racing or bookmaking and six of the 11 members must be members of the Irish Turf Club and/or the Irish National Hunt Steeplechase Committee.
The 1945 Act gave the board power to own and operate racecourses and to regulate the management of private courses. At present they own Leopardstown Race Course and they have a controlling interest in Limerick Junction. The other 24 courses are privately owned. The board may grant, refuse, suspend or revoke course betting permits for bookmakers. They get their funds, as I have said, from levies on course bets with bookmakers and from bets on the totalisator. The income of the board in 1974 was £1.39 million consisting mainly of £896,000 from a 5 per cent levy on course bets with bookmakers and £420,000 from a 20 per cent levy on losing bets on the tote. They reallocated £1.22 million to racing, the main elements being £770,000 for stakes, £160,000 for carriage of horses, that is to races, and £120,000 to the Turf Club. Since 1969-70 the board have got a capital grant of £100,000 each year from the Exchequer. This, together with part of their current surplus, is reallocated to racecourses as capital grants or loans for buildings, equipment and other amenities. Total capital expenditure at racecourses since 1969 is estimated at £2.1 million towards which the board contributed £1.9 million in loans and grants. I should like to avail of this opportunity to congratulate the board on their excellent work down through the years and to thank them and their staff for their very generous services.
May I refer also to other State bodies associated with bloodstock? There is the National Stud Company which helps bloodstock breeding by maintaining a corps of high quality stallions for service to breeders at reasonable fees. The company also co-operate with research workers in equine research and they conduct training courses in stud management. The company's share capital, which is held by the Minister for Finance, is used to buy stallions and to provide buildings, yards and other facilities at the studs.
I should like to remark that very considerable capital has recently been expended over a period in reconstructing and developing the buildings, yards and other facilities at the stud. The present investment in share capital is £1.5 million. The allocation of capital for the stud in 1975 was £300,000.
The other State body dealing with the horse industry, Bord na gCapall, is mainly concerned with equitation. At the beginning of this year they took over incentive schemes for horse-breeding formerly operated by the Department of Agriculture and Fisheries. The board promotes sales of horses, gives grants to show societies and teams competing in international competitions. They conduct training courses and register riding establishments. They hope later to establish a national equitation centre. The State grant to Bord na gCapall for 1975 was £650,000. Its total contribution in 1975 to the horse industry and the three State bodies I have mentioned will be £2.5 million.
I shall now turn to the sections of the Bill before the House. Section 1 contains the usual definitions. Section 2 provides that the consent of the Minister for the Public Service must be got before the Racing Board determines the remuneration of its chief officer. This is in line with a number of recent provisions in Acts dealing with State companies where the remuneration is fixed in consultation with the Department of the Public Service and the various national wage agreements applied to the staffs concerned. Section 3 (a) provides that in case of on course winning bets bookmakers will charge the levy on total winnings and deduct that levy from the amount being paid to the punter. This is the existing practice which is now being formalised. Section 3 (b) increases the maximum levy chargeable on course bets from the present 5 per cent to a maximum—with the consent of the Minister for Finance—of 10 per cent. As I mentioned earlier, I understand that it is the intention of the Racing Board to increase it by only 1 per cent.