The Greyhound Industry Act, 1958 was enacted to provide for the improvement and development of the greyhound industry, greyhound racing and coursing and for the better control of greyhound race tracks and coursing grounds. The Act established Bord na gCon and gave to it the responsibility for the control of racing and the improvement and development of the industry. Up to 1958 greyhound racing had been controlled throughout the 32 counties by the Irish Coursing Club. That club continues to control racing at Northern Ireland tracks and coursing throughout the 32 counties. The 1958 Act recognises the Irish Coursing Club as being, subject to the general control and direction of Bord na gCon, the controlling authority for the breeding and coursing of greyhounds and gave it responsibility for the maintenance of the greyhound stud book which it had been producing since 1923.
The greyhound industry is a significant source of employment in rural areas. I understand about 8,000 people are involved in the industry as breeders, owners and trainers. If those involved in operating racing tracks or in the supply of ancillary services are included, it is estimated that some 10,000 people derive their livelihoods either directly or indirectly from the industry.
Greyhound breeding and rearing are integral parts of rural life in Ireland. It is primarily carried on by the agricultural community, in particular on the smaller, less economic holdings, to augment the earnings of small farmers, agricultural sector employees and rural dwellers. The profile of a typical Irish breeder is that of a small farmer or rural dweller who keeps one, two or three dams for breeding purposes; who sells some of the puppies produced at 8 to 12 weeks old to other neighbouring farmers and rears the balance of the litters to racing age. The greyhounds are then raced to demonstrate their capabilities for sale or export.
According to recent surveys carried out by Bord na gCon and the University of Limerick, farmers, mainly with small holdings, account for 6,000 of the total of 8,000 breeders, rearers and trainers. These activities generate an estimated farm income of about £16 million or an average of £2,600 per farmer. It is estimated that the industry is worth about £40 million per annum to the economy. As such, it must be regarded as a genuine alternative farm enterprise making a significant contribution and capable of making an even greater contribution towards retaining people on the land and in rural areas.
It is an enterprise with a long tradition in which we are skilful, have natural advantages and market potential. It is basically export orientated, its main market being the United Kingdom. The industry at the breeder and rearer level is in reasonably good condition. However, if the sector is to reach its full potential existing export markets must be exploited to the full and new markets identified and developed. Apart from the many merits which the greyhound racing sector has to recommend it on its own account — such as the direct and indirect employment that it provides and its contribution to the quality of life for residents and tourists — it is also the shop window for the industry. Without this the breeding and rearing sector cannot develop fully. It is the performance of greyhounds at top quality racing meetings which attracts buyers from abroad and encourages them to pay top prices.
I regret that the current state of the greyhound racing industry could not be described as healthy. Attendances at greyhound race meetings fell from 1 million in 1975 to about 700,000 in 1992. Bord na gCon's main sources of income, in other words the sources of income available to the industry for its development, are the on-course betting levy, profits from tote betting, Government grants and sponsorship. The levy income increased between 1981 and 1991 only from £1.1 million to £1.2 million. This represents a substantial reduction in real terms. Levy income is believed to have dropped to a figure slightly in excess of £1 million in 1992. Reduced attendances have also affected the tote. Net proceeds from the tote dropped from £700,000 in 1981 to £169,000 in 1991. Provisional figures for 1992 show a slight recovery to about £300,000.
On the other hand the board's contribution to prize money has been well maintained over the last decade. In 1991 and 1992 its contribution represented about 55 per cent of its operating income. Total prize money has seen a marked increase since the mid-eighties with the contributions from private sector sponsors increasing steadily. The sponsors were recruited by the board and the track managements themselves. However, the board's contribution is by far the greatest at over £800,000 per annum. Sponsorship by outside commercial interests has reached a record high of £560,000 i.e. almost 30 per cent of the current total prize money of £2 million.
The board's income has been supplemented in recent years by grants-in-aid from the proceeds of the off-course betting levy. These grants-in-aid amounted to £0.5 million in 1990 and £0.75 million in each of the years 1991, 1992 and 1993. Despite this, all of the board's income is now used up on administration and prize money, leaving no funds available for developing the industry or for grant-aiding the maintenance or improvement of facilities at tracks. The tracks themselves have to rely on income from admission fees, trial fees, bookmaker pitch fees and profits from bar and catering activities. The tracks find it very difficult to operate profitably on this basis and there are no funds generated which could be used for reinvestment in facilities. The net result is that the tracks have become progressively run down.
In the current climate with an ever-increasing array of leisure time activities to choose from, I believe that there is little prospect of attracting the punters back to greyhound racing in increasing numbers unless the facilities provided are upgraded to the standards expected today.
Bord na gCon is at present in the process of implementing a five-year plan which was adopted in 1990 in order to restore the organisation to profitability and to redevelop the industry. The main features of the plan are computerisation of operations; adoption of cost cutting measures and the reorganisation of management functions; reallocation of prize money with emphasis on raising attendances at the premier tracks; securing increased sponsorship and other income generating activities; introduction of improved controls of racing and betting; greyhound breeding to be designated as an alternative farm enterprise; a national stud and a marketing centre to be established and Shelbourne Park to be developed as the premier greyhound track in the country. Under this plan Clonmel track was sold and the board is now seeking to sell its track at Youghal. It is also considering the possibility of selling Harold's Cross track and of transferring its racing fixtures to Shelbourne Park. However, the implementation so far of the development plan has not had the desired effect on the fortunes of the industry which remains in a depressed state.
It was in these circumstances and in view of the fact that current legislation governing the industry is now 35 years old that the Minister for Agriculture, Food and Forestry, Deputy Joe Walsh, in July 1992 established a task force consisting of representatives of Bord na gCon and officials from the Department to examine the structures, financing and legislation governing the industry. The remit of this group also included the issue of coursing. The task force concluded its deliberations some time ago. Subsequently, the Department submitted a position paper on the industry to the Minister, Deputy Walsh, and me. Following consideration of the issue by us proposals were put to and approved by Government last June.
The Government recognised that a comprehensive amendment of the Greyhound Industry Act would be a time consuming and complex exercise. They therefore approved the preparation and introduction into the Dáil of a short Bill dealing with three issues of an urgent nature. Heads of a more comprehensive Bill updating and amending the provisions of the 1958 Act are at present in the course of preparation in the Department and I will be pressing to have this work completed as soon as possible.
The Bill now before the House proposes to amend section 9 of the 1958 Act so as to give the Minister power to appoint the ordinary members of Bord na gCon without reference to vocational background and to provide that the term of office of directors shall be three years, terminating on a rotational basis; to amend section 36 of the Act to empower the Minister to make regulations providing for the muzzling of greyhounds at coursing meetings and for veterinary supervision of hares before, during and after such meetings; to amend section 23 of the Act so as to remove the ban on greyhound racing on Sundays, Good Friday and Christmas Day.
The board consists of a chairman and six ordinary members. Under the current Act three of the six members, and not more than three, shall be members of the standing committee of the Irish Coursing Club. I believe this provision is too restrictive. It means that only three places are available for all other sectors of the industry such as owners, breeders, trainers, private track owners and bookmakers. A case could also be made that the board should include someone with good business and financial experience and expertise.
I fully recognise that members of the ICC could claim to represent greyhound owners, breeders, trainers and even private track owners and, indeed, a new board might well contain several people who happen to be members of the standing committee of the ICC. However, I believe that the statutory requirement is no longer valid and should be removed.
The inclusion of this provision in the 1958 Act must be looked at in the light of the circumstances obtaining at that time. Until the 1958 Act was adopted and Bord na gCon established, the ICC was the controlling body for both greyhound racing and coursing. It was logical that, as the body with the expertise at the time, it would, in the interests of continuity, be given a major role in directing the new body. That situation no longer exists and I propose to avail of this opportunity to remove these unnecessary restrictions on the Minister when appointing a new board.
The current legislation also provides that the ordinary members of the board are appointed for a five-year term of office and that a new board is appointed during every fifth year. In the interests of greater flexibility and continuity I am proposing that membership of the board will be for a three-year term and that vacancies will occur on a rotational basis. In other words, after the initial "running-in period" two vacancies will fall to be filled each year.
Deputies will recall that earlier this year the question of coursing was given a comprehensive examination by the House in the context of the Wildlife Bill, 1993. During that debate I announced that I had reached agreement with the ICC that controls aimed at eliminating the kill during coursing meetings would be introduced. These controls include rule changes which would reduce the number of courses, improve veterinary supervision and provide for better conservation of the hare stock. The club also agreed to complete its research programme aimed at developing a muzzle which, while having regard for the welfare of hares and dogs, will lead to all dogs participating in enclosed live hare coursing being muzzled. The club further agreed that a significant number of courses in the current coursing season would be used as trials to allow for the introduction of muzzling for all courses at an early date.
I have established a monitoring committee within the Department to oversee the implementation of these measures and to assess their impact. In accordance with their agreement, the ICC commenced the phasing in of muzzling on a trial basis at the beginning of the current season. In the initial stage of the trials the greyhounds participating in the semifinals and finals of all stakes were muzzled. The ICC recently agreed to extend these trials on muzzling to more than 50 per cent of all courses.
Muzzling has certainly brought about a considerable improvement. The latest information available, covering the period up to 21 November, is that out of 1,029 courses involving muzzles four hares were killed and eight were injured and were put down. The momentum towards increasing the level of muzzling will continue with all greyhounds being muzzled at enclosed coursing in time. My target is the elimination of the kill and I will continue to work towards that goal. Initially a soft leather muzzle was used and more recently a plastic one. The search for the ideal muzzle will continue. I will continue to monitor the situation, the ultimate aim being the elimination of the kill.
The agreement we reached with the ICC will be observed without the necessity of legislative backing. Nevertheless I consider it prudent to avail of this opportunity to include a provision authorising the Minister to make regulations providing for the muzzling of greyhounds at coursing meetings and for the veterinary supervision of hares before, during and after such meetings. These are enabling provisions which will give the Minister power to introduce the required measures without delay if the need arises. Deputies will also observe that these powers are being given added teeth by the level of the penalties being prescribed.
The third provision in the Bill proposes to remove the ban on greyhound racing on Sundays, Good Friday and Christmas Day. Various interests within the industry have represented to me that several highly remunerative meetings could be held on Sundays if this ban were lifted. As I stated, the greyhound industry is in competition with a variety of other forms of entertainment, none of which suffers from a similar ban. I am therefore proposing its removal in the interests of fair competition.
Both the Minister for Agriculture, Food and Forestry and I have accepted for some time that this ban should be removed but its removal got caught up in the wider issues which were under consideration. Two Sunday race meetings were held during the past year in the knowledge that steps were being taken to have the ban removed. I am now proposing that the removal of the ban will have effect from 1 December 1993 in accordance with an established precedent whereby the amendment gives legal effect to the provision from the date on which the policy decision was taken. The removal of the ban on Sunday racing and the reconstitution of the board were recommended by the Oireachtas Joint Committee on Commercial State-sponsored Bodies in its report on Bord na gCon. The remaining recommendations of the committee can be classified under two headings. They are either matters for Bord na gCon and as such need not directly concern us here or they are proposals which require legislative changes. I can assure Deputies that these latter proposals will be given careful consideration when the comprehensive Bill is being drafted but I will comment briefly on some of the more important issues raised.
I consider that satisfactory and generally accepted control structures which will win the confidence of the punter are essential if the fortunes of the industry are to be reversed. A major cause of the current lack of confidence in the controls derives from the fact that the board owns seven out of the 18 tracks currently operating. The general public are not convinced that the one organisation can satisfactorily operate racing tracks and at the same time objectively administer the various control procedures necessary to ensure scrupulously fair treatment for everyone. This is a matter to which I will have to give serious consideration before drafting the second Bill.
Another issue which will require careful consideration is the statutory relationship between Bord na gCon and the ICC. The Oireachtas Joint Committee recommends that there should be no statutory relationship. This begs the question of whether it is wiser to allow the ICC to operate as an entirely private body or to retain some control over its activities.
Regarding the Joint Committee's recommendation that the international marketing centre should only be proceeded with if it has a high chance of commercial success, I fully appreciate the concerns expressed and in fact the project was not proceeded with during the programme which is now drawing to a close. However, the motives behind this proposal deserve some sympathy in my view. As I stated, the industry is basically export orientated. A very attractive potential market exists in the United States. Unlike other markets, the emphasis in North America is primarily on stamina. While greyhounds in Ireland run in track racing of six-dog races, mostly on grass and to an outside lure, in the United States they run in eight and sometimes nine-dog races on sand to an inside lure.
American buyers are not prepared to hold Irish-bred dogs for the recommended acclimatisation period. Major US buyers have recommended that Irish greyhounds destined for export to North America should be trained in Ireland for US conditions. This was the function which the proposed marketing centre was intended to fulfil. Because of the emphasis on stamina in the United States, greyhounds have also to be specially bred for this market. The original marketing centre proposal envisaged a national stud and marketing centre. The Department has discussed this matter with Bord na gCon and as a result I am hoping that the new structural funds programme when finalised will include more flexible arrangements in relation to this issue. I fully recognise that a venture of this nature cannot be guaranteed to be a commercial success but I consider that the allocation of a certain amount of funds to the projects is justified.
I would again draw the attention of the House to the substantial nature of this industry. It employs about 10,000 people, mostly in rural areas, thereby helping to maintain the demographic balance between urban and rural areas. Greyhound rearing and breeding are genuine alternative enterprises in the agricultural secor. In terms of overproduction in our main agricultural products this sector has an important role to play in maintaining farm incomes.
The role of this House is to provide the legislative framework which will enable the industry to reach its full potential. The current legislative framework is the Greyhound Industry Act, 1958. A thorough overhaul of this legislation is now called for.
Meanwhile a preliminary Bill dealing with three urgent matters is being presented to the House for adoption. The issues, namely, the reconstruction of the board of Bord na gCon, the removal of the ban on Sunday greyhound racing and enabling provisions empowering the Minister to make regulations governing the muzzling of greyhounds at coursing meetings and veterinary supervision of hares are not controversial and I recommend their adoption to the House.
