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Dáil Éireann debate -
Thursday, 17 Jun 1999

Vol. 506 No. 4

Horse and Greyhound Racing (Betting Charges and Levies) Bill, 1999: Second Stage.

I move: "That the Bill be now read a Second Time."

During the past few years very strong representations were made to me on behalf of the racegoer by such esteemed Members as Deputy McGahon and the Ministers for Finance and Tourism, Sport and Recreation, Deputies McCreevy and McDaid. The bookmakers made representations to me that their business was under serious threat and that it would be desirable to improve the position of the Irish racegoer because the Irish horse racing industry and the Irish horse breeding industry is a very important part of our economy. The bookmakers made the point that competitiveness of their business was being seriously threatened by the growth and promotion in the Irish media of offshore tax-free telephone betting services. In order to counteract the effect of these developments on our heretofore buoyant betting market and to best protect the Exchequer revenue from this source into the long-term future the Minister for Finance proposed in last December's Budget Statement that the rate of excise tax to be applied to off-course betting should be reduced from 10 to 5 per cent with effect from 1 July 1999. This change is provided for in the Finance Act, 1999.

In the Budget Statement the Minister recognised that the reduction in off-course betting tax would have implications for the on-course betting levy of 5 per cent which the Irish Horseracing Authority, IHA, and Bord na gCon collect on bookmaker betting at racecourses. Both bodies have in recent years, with the help of substantial Exchequer funding, invested in improved facilities to attract new patrons. One way of encouraging punters to attend race meetings to place their bets is the lower rate of tax-levy applied on racecourses. In order to retain the differential and ensure that the increased attendances of recent years are maintained and improved upon, it would be necessary to reduce or preferably eliminate the 5 per cent on-course betting levy. The elimination of the levy would involve the loss of revenue at 1988 levels of more than £4.4 million and £31.1 million annually to the IHA and Bord na gCon respectively.

Arising from the development work and strategic planning being carried out by these bodies the revenue from this source is increasing year by year and both organisations are confidently predicting continued increases in future years. The proposal to eliminate the 5 per cent on-course betting levy could only be proceeded with if satisfactory alternative arrangements are made to replace the loss in revenue. It is estimated that those arrangements would need to provide for rates of charges which would yield revenue in the order of £6 million at projected 1999 levels of activity. This income would be divided between the IHA and Bord na gCon on a 4:1 basis.

On the basis of the consultations which took place with industry interests and conclusions reached within the Departments, my colleague, the Minister for Finance, Deputy McCreevy, and I jointly agreed and announced the following new measures. There will be a betting turnover charge of 0.3 per cent to be paid by all bookmakers operating at horse and greyhound race meetings to yield annual revenue of the order of £0.27 million and which will be collected by the IHA and Bord na gCon respectively. Charges will be set by the IHA on bookmakers – and/or bookmakers' pitches – or betting shops at horseracing fixtures to yield of the order of £0.37 million and will be collected by the IHA or by the racecourses on behalf of the IHA.

For off-course bookmakers there will be a betting turnover charge at the rate of 0.3 per cent to be paid by all high street bookmakers which will yield annual revenue of the order of £1.7 million. There will be an additional flat-rate charge of £2,000 levied on all high street betting shops which will yield annual revenue of the order of £1.6 million.

Both of these charges will be collected on behalf of the IHA and Bord na gCon by the Revenue Commissioners and paid over regular intervals to the IHA who will then forward 20 per cent of the moneys received from these sources to Bord na gCon. The annual grants-in-aid to the IHA and Bord na gCon will be increased by a sum equivalent to 0.3 per cent of the off-course betting turnover and divided between the two bodies giving, at current levels of betting, an annual increase in the grant-in-aid to the IHA of £1.2 million and to Bord na gCon of £0.5 million. The IHA and Bord na gCon will be asked to reach an agreement with the racecourses and greyhound tracks on a contribution from them which will yield £0.5 million.

The reduction of the on-course betting levy to 0 per cent and the introduction of turnover and flat-rate charges on off-course and on-course bookmakers require legislation and the relevant provisions amending the Irish Horseracing Industry Act, 1958, are including in the Bill we are considering today.

It is proposed to give power to the IHA and Bord na gCon to alter the new on-course betting turnover charge from time to time subject to the consent of the Minister for Agriculture and Food and to set and alter the on-course flat-rate bookmaker charges at their own discretion. The new off-course betting turnover and betting shop charges may be amended by the Minister for Agriculture and Food with the consent of the Minister for Finance. There are limits to the increases that will be allowed under the Bill which are 5 per cent maximum on the turnover charges and £5,000 on the flat-rate charges, although I would not envisage any substantive changes for some time.

Some time ago the Irish Thoroughbred Breeders Association put forward proposals for the development of the thoroughbred horse breeding sector and suggested that the cost of the measures could be part financed by a statutory levy on all the foals registered in the approved stud book maintained by Weatherby's Ireland. While it was decided not to proceed with that aspect of the proposal at that time, it is considered prudent to take this opportunity to include in the Irish Horseracing Industry Act an enabling provision to empower the IHA to introduce such a levy in the future if the circumstances warrant it.

Heads of a Bill to replace completely the Greyhound Industry Act, 1958, were approved by the Government in 1996. The drafting of the Bill was delayed pending the resolution of complex legal issues which arose. As the Bill is not now expected to be published for some time, I decided to bring some of the more urgent items which could be drafted quickly and to include them in this Bill. These are to empower Bord na gCon to establish subsidiary companies and allow it or any of its subsidiaries to enter into joint ventures or take shares in or become a member of another company subject to ministerial consent; remove the ban on tote credit betting imposed under section 20 of the 1958 Act; allow for the introduction and regulation of on-course betting shops at greyhound tracks and the collection of levy, turnover and flat-rate charges on the same basis as that being provided for betting shops on horse racecourses; provide general power for Bord na gCon to introduce charges for services etc.; and increase the level of fines which may be applied in respect of offences mentioned in the 1958 Act. Similar measures were introduced for the IHA in the Irish Horseracing Industry Act, 1994.

The Bill also includes a number of minor and technical amendments to Irish Horseracing Industry Act, 1994, and the Betting Act, 1931, as well as a small liberalisation of the provisions of the Intoxicating Liquor Act, 1962, to allow bars at greyhound tracks to stay open for up to two hours after the last race instead of half an hour.

The only direct charge on the Exchequer in these proposals is the increase in the grants-in-aid to the IHA and Bord na gCon by a sum equivalent to 0.3 per cent of the off-course betting turnover which will cost £1.7 million annually. This measure will be dealt with in the Department's Vote and is not referred to in the Bill.

The horseracing industry is very important with the horse racing sector providing 25,000 jobs as well as substantial benefits for tourism, rural communities and the economy. The main and most immediately noticeable feature of the recent development of this sector is the creation of the many new and upgraded racecourse facilities. The provision of better facilities and racing for the general public continues to be one of the prime objectives for all racecourses together with improving the working conditions for people working within racing. In 1996 the Irish Horseracing Authority produced its five year strategic plan. The establishment of the capital development fund was the most important element of it. The fund, which has been increased twice since it was set up, will see the investment in racecourses of a total of £60 million over a short period. Grants in the region of £21 million for the upgrading of racecourses have already been approved involving some assistance for almost every race course in the State. Dundalk racecourse will receive assistance in the not too distant future. This substantial investment is working well for the betterment of the industry, as can be seen from its performance over the past two years.

Irish racing enjoyed another excellent year in 1998. The upward trend in betting, attendance, prize money and sponsorship of recent years continued and in virtually every area of performance the targets set in the strategic plan were surpassed: total betting was up by more than 10 per cent, attendances were up by 5 per cent to well in excess of one million with sponsorship and prize money showing significant increases of 15.3 per cent and 10.5 per cent respectively.

Obviously the industry needs to build further on the performance of recent years if it is to achieve the long-term targets set by the authority in its plan. Much more needs to be done to make the industry more successful commercially. The authority has taken a number of initiatives aimed at improving the returns which owners get from their investment in racing. Last year the prize fund exceeded £16 million, rising to £20 million. I notice some owners in this House who are involved in syndicates. At least one of those syndicates is doing reasonably well but, in general, owners lose money through this hobby.

Last year was the first year of the new sponsorship incentive scheme which contributed to a growth in sponsorship of more than 15 per cent. The authority intends to expand the scheme this year.

Deputies will be aware of the Government's commitment to the horseracing industry. This support takes many forms but perhaps the most tangible is the direct Exchequer investment which is channelled through the Irish Horseracing Authority. Over the past five years the Government has invested in excess of £42 million through this route. This year will see the investment of a further £14.85 million of Exchequer funds in the industry – a considerable sum. Capital investments aimed at upgrading and enhancing facilities at greyhound tracks have resulted in patrons enjoying a level of comfort consistent with Bord na gCon's objective of creating and sustaining a new positive image of the greyhound industry as an attractive and exciting night time entertainment business. The turnaround in the industry started with the development of a modern stadium in Shelbourne Park in 1995 and the introduction in 1996 of a colourful, professional and forward thinking approach to the marketing of greyhound racing. Over the past two years, Shelbourne Park has become well known as the place to go for a fun night out with a difference. There is only one problem for Members, it meets on a Wednesday night and we tend to have a vote here at 8.30 p.m. For anybody who is free on a Wednesday night, it is a nice place to visit and excellent food is available. Thousands of new racegoers have enjoyed the buzz and excitement of Shelbourne Park – the modern face of greyhound racing in Ireland, offering the highest standards of patron comfort and hospitality available anywhere. The success of the development and marketing campaign is apparent in the continued dramatic increase in attendances and betting figures since 1995.

Shelbourne Park is only the start of a lengthy process that is needed on the capital development and marketing side of the industry. Similar improvements were achieved at Tralee, Thurles, and Waterford in 1997-98. Work has commenced on a brand new stadium for Cork, where I officially turned the sod for the development just a few months ago. There are plans for developments at other tracks, including Harolds Cross, Dundalk, Limerick, Newbridge, Mullingar, Galway and Kilkenny with the possibility of a further development at Shelbourne Park. The combination of top class facilities, aided by effective marketing, appears to be the key to the successful promotion and development of the greyhound industry in the years ahead.

The greyhound industry began in 1998 in a position of strength with dramatic increases having been achieved in attendances, tote and bookmaker turnover. The strong results of 1997 were surpassed by an exceptional performance in 1998 with all key performance indicators showing significant increases on the previous year. Total betting turnover was up over 10 per cent with tote turnover at almost £10 million, recording a 17 per cent increase, while bookmaker betting turnover at £22 million increased by 8 per cent. Total attendances increased by nearly 10 per cent, to 750,000. These increases augur well for the long-term viability of the industry.

The Government is deeply committed to the development of the greyhound industry. This support takes many forms but perhaps the most tangible is the direct Exchequer investment which is channelled through Bord na gCon. In the last five years the Government has invested £17 million through this route. This year will see the investment of almost £5 million of Exchequer funds in the greyhound industry.

This legislation will help to underpin both the horse and greyhound racing industries into the long-term future, and on that basis I commend the Bill to the House.

Fine Gael welcomes this Bill. We have no problem with it in principle, but there are matters of detail to which we will return on Committee Stage. I thank the Minister for his speech. We are pleased that initiatives we commenced in Government are coming to fruition and that the horseracing and greyhound industries are thriving. They are important industries from a business, employment and leisure point of view. There is a direct connection between the prosperity in the economy and the number of people anxious to have a night out at the dogs or a day at the races. The 10 per cent increase in betting and the increase in attendances at greyhound meetings and at racecourses is a sign of a thriving industry. Deputy Deenihan, who has a deep interest in and knowledge of the greyhound industry, will share time with me.

The Irish Horseracing Authority has done an excellent job. It is appropriate that I pay tribute to Noel Ryan whose untimely death deprived the horseracing industry of a key figure. I knew him when he was a principal officer in the Department of Justice, Equality and Law Reform and I worked closely with him. We were all shocked at his death this year. He and his staff brought forward a new blueprint for racing. That is one of the primary reasons an industry which employs 25,000 people is prospering to such a degree.

The Minister for Agriculture and Food has a strong interest in the development of the County Cork race track at Mallow. I have an equally strong interest in the development of Limerick racecourse at Greenmount, Patrickswell. There is no racing in my city or county now because the old track at Greenmount is closed and the new track is not yet ready for opening. I want the Minister to note that the development is going well. The new city ring road by-pass carriageway will skirt the boundary of the new track and access will be easy. After the ground has settled and the track is in a racing condition next year, I have no doubt Limerick will be restored to its rightful place as one of the primary centres of the racing industry.

From a leisure point of view, the racing and greyhound industries are becoming increasingly important. Not only are increasing numbers of Irish people attending race meetings and greyhound meetings, but many tourists tend to seek out a night at the dogs or a day at the races. That is welcome.

As the Minister said, visitors and citizens continue to expect higher standards. People will not accept the tatty old facilities which were available in the tracks sponsored by Bord na gCon. While Shelbourne Park has had a massive upgrade and is in line with the best of facilities in the southern states of America, where they race dogs as well, other tracks are not up to that standard. The track in Limerick city is badly in need of investment. I am pleased the Minister mentioned it as one of the tracks which will be developed, but it seems to be very far down the priority list. Given that the headquarters of Bord na gCon was located in Limerick in the past and that the greyhound industry is strong there and in neighbouring counties, the Limerick track should have a higher priority.

Turning to the provisions of the Bill, I have some difficulty with the manner in which the Minister has brought forward his proposals. I agree that the availability of facilities to bet overseas by way of the Internet is a major threat to Irish off-course and on-course betting. I agreed with the proposals brought forward by the Minister for Finance in last year's budget. We did not contest those provisions because we realised they were necessary. All of us on this side were lobbied by the industry and the case was valid. We also agreed with the Ministers for Finance and Agriculture and Food that most of the financial shortfall to the Exchequer would be made up in other ways.

This legislation seeks to implement alternative funding methods for the industry. I have a difficulty with some of them. Before adopting a hard position on them, perhaps the Minister would deal with them in greater detail. As I understand it, off-course betting tax was reduced from 10 per cent to 5 per cent in the Finance Act, 1999. To maintain the differential with on-course betting tax, the 5 per cent excise on on-course betting was abolished. This is being replaced by a 0.3 per cent tax on the turnover of the course. I have an occasional bet. As I understood it, one has the option to pay tax on the stake or on the winnings. The Minister has decided to have the best of both worlds because he will put the excise on the turnover. My understanding is that if one wagers £10 one can pay the tax of £1 up front. On the other hand, if a person chooses tax on winnings he will get, say, £100 and pay £10 tax, in addition to receiving £10. However, the Bill proposes that with regard to a £10 wager which returns £100, or a total of £110 to the punter, the excise will not be applied to the stake or the winnings but to both and, in addition, a 0.3 per cent levy will be applied to the turnover of the course. That is onerous, although at 0.3 per cent, it is not too onerous.

The Bill also introduces an enabling section whereby the 0.3 per cent levy can be increased to up to 5 per cent. It is customary for Bills of this kind to contain enabling sections and it is customary to give some latitude to the Minister of the day to increase such a levy in line with inflation. However, in this instance the Minister seeks a discretion amounting to 1,666 per cent, which is outrageous. The latitude between a turnover tax of 0.3 per cent and 5 per cent is enormous. While a proposed tax of 0.3 per cent is acceptable to all in the House, we could take a different view if the Minster were to advise us that, within a short period he would increase it to 5 per cent. Far too much latitude has been provided here. It is customary in enabling sections of a Bill to perhaps double or treble the charge, but to propose an increase of more than 1,600 per cent calls for a level of tolerance beyond anything which has been sought by way of regulation in the past.

The Minister also proposes a new flat rate charge on bookmaker shops, with a suggested threshold of £2,000 per shop. That is fair enough. I presume there were discussions with the industry and that it accepted this measure. However, again, the Minster seeks to increase this sum up to £5,000 by way of regulation, which would be an increase of 150 per cent. That is a more reasonable demand than the proposal on increasing the turnover tax rate. If it is to be negotiated following full consultation with the industry I do not have a problem with it.

The legislation also provides for an increase in the annual grant-in-aid fee to the Irish Horseracing Authority and Bord na gCon. There is a tenuous commitment that a contribution will be sought from racecourses to fund this. People are free to go to the races seven days a week. This includes attending dog races if they can find enough venues. However, I do not see why this leisure activity should be cross subsidised by taxpayers. There is an element here of a charge on taxpayers being introduced without a corresponding commitment to raise a contribution from the racecourses. Will the Minister indicate the discussions he has had with the racecourses to ensure that the contribution he expects from them will materialise?

I also agree with the provision to empower the IHA to introduce a thoroughbred foal registration levy to fund the development of the thoroughbred horse breeding sector. That is a way of procuring funds and it also provides a mechanism for further strict regulation of that industry. I understand it is the Minster's intention to introduce this at a level of £600 per foal. Is this the maximum imposition or will the Minister apply a fixed levy following the enactment of this legislation, or will he retain power by regulation to increase this?

I am also pleased the Minister has taken the opportunity to upgrade the Greyhound Industry Act, 1958, and to introduce extra flexibility for Bord na gCon. When the Bill is passed the board will be able to get involved in joint ventures and subsidiary companies. It will be able to undertake the kinds of activities the Irish horseracing industry is enabled to do under the Act of 1994. I welcome that.

The Minister also proposes to liberalise in a small way the Intoxicating Liquor Act. However, given that his colleague, the Minster for Justice, Equality and Law Reform, has stated his intention to introduce substantive legislation on the licensing laws, the Minister should have left that aspect to him. The Minister proposes to allow bars at greyhound tracks, which may remain open for half an hour after the last race, to remain open for two hours after the last race. That is fair enough as far as it goes, but it appears to be a pre-emptive strike in the face of the impending introduction of substantive legislation on the licensing laws.

The provision also has implications for pub owners located within the vicinity of tracks. At the track in Limerick there are five pubs which visitors frequent. If facilities are to be upgraded at tracks and if visitors can stay on for two hours there will be a transfer of trade from the local publicans to Bord na gCon, which may or may not be justified. If greyhound racing is being promoted by the industry as being the total night out, where one can bring one's wife, girlfriend or the family, people may want bar facilities afterwards, especially in places such as Shelbourne Greyhound Stadium, where food is served also. If people want to have a meal after the last race the half hour restriction on serving drinks is unreasonable. However, it appears the Bill is being used to implement change without adequate debate. I do not oppose this provision, but the attention of the vintners should be drawn to it.

Section 10 provides for the 0.3 per cent turnover tax on betting. The section also provides for the introduction and regulation of betting offices at greyhound tracks by Bord na gCon and for the equivalent of the new rate high street excise duty of 5 per cent on betting at those offices or off-course type bets in the betting ring to go to the board rather than the Revenue Commissioners. I have no difficulty with providing that the board be obliged to return to the industry rather than the Revenue Commissioners. However, in this instance the Minister appears to be dropping the turnover tax rate of 0.3 per cent in favour of a rate of 5 per cent. This may indicate his intention that the 0.3 per cent rate will not last long and that he will increase it to 5 per cent. The provision is drafted ambiguously so I am not sure if I am interpreting it correctly.

It is proper to increase the penalties, as proposed under section 11. There is not much point in introducing legislation of this kind and setting obligations on people unless penalties apply to ensure they comply with the regulations.

I have no problem with section 12. There should not be a ban on tote credit betting at tracks and I have no difficulty with the Minster's proposal to remove it.

In general terms we welcome the Bill. It introduces a number of necessary changes for the protection of the industry. At the same time it introduces proposals for alternative funding arrangements to protect the Exchequer and to ensure that, to a very large degree, the industry continues to be funded by itself. We accept that and welcome the Bill, subject to the reservations to which I have referred and which we will address on Committee Stage.

I thank Deputy Noonan for sharing his time with me. I also thank the Minister for introducing the Bill. Presumably he had no other option because he had to implement the relevant provisions of the Finance Act. Nevertheless, if affords us the opportunity to take an overview on the horse racing and greyhound indus tries. I will confine my remarks to the greyhound industry. The two officials who are here with the Minister have played an important part in framing legislation relating to the greyhound industry over the past seven or eight years. Both have a deep knowledge of the horse and greyhound racing industries and that is reflected in this Bill and previous legislation which improved both industries.

I take particular pleasure from the Bill because the provisions which I had hoped to introduce before I left office are included in it. Some provisions had been proposed by Deputy O'Shea when he was in office. They were passed on to me and I added further to them. The reason a major review of the greyhound industry did not take place related to legal advice from the Attorney General's office. I understand that this has been addressed. Will the Minister outline that advice on Committee Stage? It has been done in the past and I would like it to be made available on Committee Stage. Unfortunately, the review did not take place despite the drafting of a Bill. Much of it was based on the horse racing industry Bill. It had been well thought out and a great deal of time was spent on it but the process was disrupted by the legal advice from the Attorney General.

I refer to the progress that was made between 1995 and 1997 and I am glad it has been continued. When I was appointed Minister of State at the Department of Agriculture, Food and Forestry, I specifically requested that I take charge of Bord na gCon because at the time the industry was going through a bad period. It was demoralised and the principal actors within it were losing confidence in its structure. There was also a major drift in support for the industry.

The previous Government had committed itself to an investment in Shelbourne Park, which no doubt was helpful, on the basis that the stadium in Harold's Cross would be sold. However, I ensured that did not happen and time has proven me to be correct because a new stadium is to be built in Harold's Cross and the land attaching to it has been valued much higher than it was a number of years ago. The fact that the Harold's Cross stadium has been retained means that not alone can it be refurbished into a fine venue to service greyhound enthusiasts in that part of Dublin city and those who travel long distances from Westmeath, Kildare etc. and who were always patrons and supporters of the stadium, it will also serve the local community and the property attaching to it is very valuable. If the decision to sell it had been implemented, it would have resulted in a major loss to the greyhound industry and the Exchequer. I am glad that the decision was reversed.

The success of Shelbourne Park, evidenced by the number of people attending there, is the envy of all national sporting organisations. These organisations use the venue for major fundraising events and this confirms that the decision made on Shelbourne Park was very wise. Last year more than £4.7 million was spent on tote betting there, which represented 47 per cent of tote betting throughout the country. That has been a major success.

When I, as Minister of State, took over responsibility for the greyhound industry, one of my first actions was to meet the directors of Tralee greyhound stadium. The plan was to invest approximately £150,000 in the stadium and put a roof on the stand there. However, I realised that it would have been of little benefit not only to the greyhound fraternity in Tralee but also to the broader tourism industry. There was a great deal of reluctance among the board members at that time because they felt they may not have been able to obtain the necessary finance. However, the chairman of the board, Seán Collins, totally supported a bigger development, and this resulted in a £1.8 million investment in Tralee. That investment has proven worthwhile since then. Last year betting with bookmakers at the track amounted to £1.5 million while tote betting increased by 57 per cent. It is a critical and integral part of the Kerry tourism industry. During the summer people of all nationalities enjoy greyhound racing at Tralee stadium.

The change in philosophy in 1995 which led to us looking at greyhound stadiums from a tourism and recreational point of view has driven the entire greyhound industry since. The appointment of Paschal Taggart as chairman of Bord na gCon was inspired and again highlighted the philosophy of that Government. It was a totally non-political decision, which has been proved since. He is a man of tremendous energy, foresight and commercial acumen. He has demonstrated the difference a commercial approach can make to a State-sponsored body.

His predecessor, Kevin Heffernan, began a root and branch review of the operations of Bord na gCon and the administration of the board is more streamlined, focused and effective than it was in the past. Both of them must take credit for what is happening. At one stage there was a leak a week from the board whereas now the board seems to work in harmony, effectively and for the good of the industry.

The Minister turned the sod at Cork greyhound stadium some time ago. I am delighted that I first proposed that there should be a new track in Cork. I am also glad that I was part of the negotiations which resulted in the sale of land around the stadium to UCC. A sum of £3.5 million was received for it and it has made a major contribution to the provision of a new track in Cork. The Minister should remember that when he officially opens the track. He might invite me to the opening given that I was not invited to the sod turning ceremony. I was glad that I was able to give something back to the people of Cork after years of taking other things from them. In politics one must be sensitive and sometimes people's achievements in office are not remembered. Their record in office is often attacked while their achievements are forgotten, but that is the reality of politics.

I welcome the provisions in the Bill, which include giving Bord na gCon power to establish subsidiary companies and enter joint ventures. That concept was included in the horse racing industry Bill and I felt that it should have been adopted for the greyhound industry. A subsidiary company should be attached to each track which is representative of the interests of owners, trainers, breeders and others in that community. This is most important and I advise the Minister to do it immediately. However, it should not be done on a political basis but on the basis of what is good for the industry.

There is nothing wrong with groups such as Kerry Co-Op, Golden Vale and Dairygold in the agri-food industry getting involved and making substantial investments in local tracks. The greyhound industry is still part of the supplementary income of the farming community and the agri-food industry should support the development of tracks and facilities.

The Bill also provides for the removal of the ban on tote, credit betting on greyhound racing, the introduction and regulation of on-course betting shops at greyhound tracks, the introduction by Bord na gCon of charges for services and increased fines for offences of non-compliance. All these measures were contained in the proposal and I am delighted that they will be implemented under section 9.

An issue arises in terms of controls and appeals. Control is most important and recent events in athletics demonstrate that people are much more conscious now of true and genuine performances. I question the application of control in the greyhound industry in terms of its effectiveness and the implementation of procedures. There is a need for manpower to carry out more spot checks. It is most important that the Minister introduces legislation to set up an independent controls board. If he does not do so, I will introduce a Private Members' Bill in an effort to do so because controls are important to the credibility of the greyhound industry. When people are betting, they must feel that they are getting a fair run for their money. The control procedures should be removed from Bord na gCon and put on an independent basis. People with legal and veterinary expertise should be appointed to such a board, which should also be representative of the greyhound industry. This is a most important area and I am sure we will return to it in the future.

Regarding breeding policy and support for the breeding industry, there is a major shortage of good dogs at present. The Minister ensured under the last programme that money was made available for the promotion of breeding and other facilities in the greyhound industry under the heading of alternative farming measures. I ask him to ensure a similar position in the next programme because the measures were most effective in improving the industry.

Although it is subject to negotiation, placing levies would put much pressure on small tracks such as Listowel in terms of their survival and cashflows. I am delighted to contribute to the debate. I would have liked more time, but I welcome the initiatives and undoubtedly I will have an opportunity on Committee Stage to discuss them further. I welcome the Bill and compliment the Minister on introducing it. I also acknowledge the work of his fine officials in the Department.

I am glad to contribute to the debate on behalf of the Labour Party. I confess that I have more than a passing interest in this matter as have some of my colleagues in the House. My area of Mullingar has a colourful background in the racing industry and it would be remiss of me not to remember with affection the late Noel Ryan who was from Mullingar. In conjunction with his colleagues on the Irish Horseracing Authority, he was one of the innovative driving forces behind the introduction of the blueprint for the development of the horseracing industry. We were shocked at his untimely passing because he had much to contribute in that area. I have no doubt that he would have remained an innovative driving force behind the development of the industry in the future. He was successful at everything to which he turned his hand. He had an impeccable track record in the Department of Justice and every other area in which he served with great distinction. We mourn his passing.

The Minister recently opened what we consider is the finest facility in the country in Kilbeggan. There are now up to seven race meetings at the track and some of my Oireachtas colleagues will attend the event in Kilbeggan on Monday.

Does the Deputy have any tips?

We hope the facility will continue to grow in popularity. There is huge interest in it and it is important in economic and tourism terms as domestic and foreign visitors use it.

We will be there on Monday night.

We look forward to Deputy McGahon spending some of his financial largesse on Monday evening. I hope when he leaves he will be a happy punter. Undoubtedly, that will be the case because the facilities there are first class. We are delighted with the Irish Horseracing Authority's investment, which the Minister acknowledged. The track now has fine pavilion and catering areas. Numerous facilities and comforts are available to patrons and there will be further developments in the future under the guiding influence of one of the best race track managers in the country, Mr. Paddy Dunican. We look forward to the support of the Government and the horseracing authority to ensure the further developments take place.

The Minister also referred to the greyhound track in Mullingar where developments are taking place. We hope Bord na gCon will continue to support the development in the centre of the town. Tuesday and Saturday nights are important nights in Mullingar and the events attract people from a wide hinterland. In recent years, major point-to-point events have been held in Slanemore and Kilkenny west. The horseracing industry is most important to the area and there were colourful characters in the industry from County Westmeath. They are well known to some Members.

There are also colourful owners.

And slow horses.

Tiocfaidh ár lá.

There are some colourful owners in syndicates which also include Oireachtas colleagues. However, as the Minister said, some of them are not very successful but one's day will come if one stays around long enough.

We cannot overemphasise the importance of the horseracing and greyhound industries to the creation of employment. Approximately 25,000 people are directly employed and there are other ancillary opportunities. Every direct job creates another job indirectly and up to 50,000 people could be employed directly and indirectly in the industries. They are also important in terms of the earning potential of tourism and recreational and leisure pursuits to which people are devoting more time.

What impact will the measures in the legislation have on the staff of the Irish Horseracing Authority in terms of the levy? Will it lead to redeployment? Will the provision to allow Bord na gCon establish subsidiary companies have a knock on impact? How will that be effective? Every Bill may have unforeseen consequences in the future and the concerns of staff should always be addressed at an early stage to ensure various aspects, which may not be obvious initially, are taken into account.

The genesis of the Bill was the announcement by the Minister for Finance in his Budget Statement of the reduction in the current off-course tax rate from 10 per cent to 5 per cent and the abolition of the on-course betting tax. Given the internationalisation of betting and the possibility of tax free betting on the Internet or through offshore telephone services, the Minister's decision appears all the more prudent and wise. We must face up to these technological advances. To preserve jobs in the industry and to prevent them being lost to these new services, we support the thrust of this legislation. We hope it will secure and perhaps expand employment in the area.

As the Minister mentioned, in recent times the Irish market has been targeted by overseas book makers offering tax free or nominal tax betting to Irish punters. Irish bookmakers were feeling the effects of unfair competition, which was placing at risk jobs and tax revenue from the industry. The Minister said 25,000 people are directly employed in the industry and they would suffer adversely were this trend to continue. Off-course betting duty excise receipts, at the current rate of 10 per cent, raised of the order of £52 million for the Exchequer in 1998. In the bad old days it was an important source of revenue which disappeared into central funds, but the Minister indicated that in the past few years the money was paid back through the Irish Horseracing Authority to ensure the upgrading, modernisation and refurbishment of facilities.

In his Budget Statement, the Minister for Finance, Deputy McCreevy, said the Minister for Agriculture and Food would arrange for the abolition of the current 5 per cent on-course betting levy, which is the purpose of this Bill. There is no tax on on-course betting at race meetings, although many people think there is.

They did not want to pay it.

It is a 5 per cent levy, payable to the IHA, and there is a 10 per cent levy on away bets and betting in SP shops at racecourses, which is also payable to the IHA. That raised some £4.4 million at horse race meetings and £1.1 million at greyhound race meetings. These levies were significant for the authority.

Reductions in the current rates will be partially self-financing as they are likely to improve compliance and stimulate extra business. The last reduction, which was in the early 1980s, resulted in a dramatic improvement in revenue. Some of the measures the Minister is imposing in the Bill are levies or taxes by the back door. It is no use removing tax with one hand and putting it back with the other. I will make my points about those measures later. They are not criticisms but they should be raised now to allow the Minister to consider them before Committee Stage. We accept the broad thrust of the Bill, subject to amendments we hope to make. The reduction in the rate of excise duty on off-course betting was provided for in section 117 of the Finance Act, 1999, which will have effect from a date to be appointed by ministerial order.

While I welcome the tax reductions for the reasons I mentioned, I have reservations about the thrust of some provisions of this legislation and their impact. The Bill is heavily weighted in favour of big bookmakers and horse breeders. Perhaps we have a tendency to defend smaller concerns. Years ago a small farmer had 40 or 50 acres but a small farmer today could have up to 150 acres; everything is relative. There is a flat rate charge of £2,000 and a betting turnover charge which varies from 0.3 per cent to 5 per cent. As Deputy Noonan said, this is a huge variation, as wide as the Gap of Dunloe, and it borders on being anti-competitive because book makers on low incomes, operating small offices in rural areas, will eventually disappear.

The punters might disappear more quickly.

The charge of £2,000 would be significant to them. Punters do disappear, the well tends to dry up more quickly for them.

The Minister for Finance was somewhat disingenuous in that the measures he announced in the budget have been nullified to some extent by the provisions of this Bill. We jumped for joy when we heard the tax rate was to be halved and the levy was to be reduced, but if the fine print shows that other charges are to be introduced by a circuitous route, how much farther ahead are we? We are introducing what is effectively a new tax collection system which will grant the IHA and Bord na gCon increased powers of taxation. Tax should always be precise and definite, there should be no ambiguity about it. Under the current system it was far too high but people knew the rate. Under the proposed legislation, however, the rates can vary by up to 5 per cent. No doubt this will depend on the exigencies of the industry. Once the tax is introduced, the maximum rather than the minimum will be the norm. The Minister expects the 0.3 per cent rate to operate and I do not doubt his bona fides, but previous experience shows that is an aspiration which may be circumvented.

Bookmakers, especially small ones, will be far more exposed in their projected incomes than heretofore. The Minister proposes to grant fairly wide-ranging powers to the IHA and there is no in-built protection for small breeders and small town bookmakers. The Minister is not considering exemptions for people below a certain defined threshold or turnover.

I examine the Bill's provisions as a barrister rather than as a public representative. Section 2 provides that the authority "shall have all such powers as are necessary for or incidental to the performance of its functions under the Act". I assume "the Act" is the 1994 Act. Why is this provision necessary? If it is necessary, why is a retrospective provision necessary to validate the actions of the IHA under the previous Act? The powers granted to any authority, whatever its make up, should always be specific, unambiguous and clearly set out in legislation. Powers should not be so wide-ranging that no one knows what they are based on. This provision constitutes an omnipotent, plenipotentiary power and the Oireachtas should not grant such all-embracing powers to any authority. The term "such powers as are necessary" should be clearly defined.

Section 3 provides for the variation from 0.3 per cent to 5 per cent in the on-course betting levy. This is not consistent with the budget announcement by the Minister for Finance. The public perception was that on-course betting tax would be abolished. Did the Minister for Finance consult the industry prior to his budget announce ment? He may have realised that a significant sum would be missing and that in one fell swoop he had wiped out the IHA's major source of income. It appears the proposed alternative levies in the Bill are an attempt to fill the financial vacuum that has been created. I wonder if there was prior consultation with the industry.

Section 3 should confirm the rate or such other percentage not exceeding 5 per cent. Obviously the nearer to 0 per cent the better because that was the perception. Perhaps the Minister might take that into account. I realise a wide brief is being allowed in relation to the imposition of the levy, but the maximum always becomes the norm, as opposed to giving an extension to somebody to obtain a sum of money. I would have concerns in that regard.

Section 4 deals with the turnover charges payable by bookmakers on course betting. This represents the introduction of a levy through the back door in that the Minister is trying to create new sources of income to replace the levy. Was this a retrospective swoop? How much better off will people be as a result of this measure? The rate of turnover charge will vary between 0.3 per cent and 5 per cent and can be levied by the Irish Horseracing Authority. This is subject to the approval of the Minister but nevertheless the scope is too wide and gives the IHA more power to levy a tax than it has under the 1994 Act. Tax collection should always be precise but under this provision if the IHA has a bad year, the tax rate will undoubtedly increase. That is the norm. If the bucket is three-quarters empty, it has to be topped up and this is an ideal way of doing it. I am concerned about that.

Section 55C, a section 4 insertion, deals with the suspension or revocation of a course betting permit if charges are not paid. Section 55C(1) gives power to revoke a permit for failure to pay charges. Section 55C(3) provides for recovery by the IHA of moneys owed under a simple contract debt. This effectively represents two bites of the cherry for the IHA. One of the sections is sufficient. Taking away a permit is a significant power and rules out the potential to earn further income, and being able to sue for the outstanding amount of the levy allows a strike on both fronts and is questionable from a legal viewpoint. I ask the Minister to focus on that area.

Section 55D, another section 4 insertion, deals with the off course betting turnover tax which will be 0.3 per cent to 5 per cent. That represents another levy on off course bookies who already pay the 5 per cent, although I acknowledge that has been reduced from 10 per cent.

Deputy McGahon might not agree but the discrepancy in regard to the annual charge in section 55E on SP offices of £2,000 to £5,000, as the Minister may specify by regulation, is not as wide as in the other section. I have a reservation about small town bookies. The annual charge is only loose change to the big boys, but I have seen many rural shops and other businesses close down and I would not like to think that a measure we implement in this Bill would result in other closures. Many people, including pensioners, enjoy placing bets but they do not all have public transport to get to the major towns. Rural bookies may only open at weekends or for the big races like Cheltenham or the Grand National, and this charge may well be one they cannot carry. That is my thinking on the matter and it is consistent with my line of argument.

I have reservations about the thoroughbred foal levy in section 5. The levy is to be placed on every thoroughbred foal born in Ireland and it is causing angst among small Irish breeders. Nobody has lobbied me about any of the other sections but I have been lobbied in relation to this section by genuine small breeders who are concerned about it. Not every breeder is a member of the Irish Thoroughbred Breeders Association – there are about 600 members but there are 6,000 breeders. Under this system, however, they will all have to join this private association without having any choice in the matter. Some of the breeders in the area of Mullingar, County Westmeath, are excellent. Deputy McGahon would be aware of one or two of those.

The ITBA has indicated that the levy which will be placed on every thoroughbred foal born in Ireland is based on a stallion's covering fee. Will the Minister clarify that? Some people are of the view that if the stallion is priced at £500 the covering fee will be £50, or if the stallion is priced at £10,000 the fee might be only £200. Is there any proportionality between the covering fee and the levy likely to be placed on the foal? I realise the maximum amount currently set out in legislation is £600 but the amount in this case should be set out in legislation also because a breeder at the lower end of the market might find it out of proportion. Will the small breeder pay the levy for the large breeder?

I understand all breeders will now become members of the ITBA, but what will happen if breeders do not want to join? The mandatory levy was sought by the ITBA to replace an existing voluntary levy which was collected at the point of sale. The amount collected from voluntary sales moves up and down annually reflecting the state of the industry and ability to pay, but the mandatory levy will be collected at foal registration and is on a scale basis. It will cost the average national hunt or jump breeder twice as much to register a foal – it will increase from £70 to over £150. I bow to the Minister's knowledge of horses but that is a bit of a burden, especially on a national hunt foal which may not even make the price for a stallion fee at the sales – perhaps £400 or £500. Those figures were given to me by breeders who are fairly clued in to what is going on and who are concerned about it. I am reflecting that concern.

Some people believe the ITBA is regularising their income and will control the distribution of the balance. If there is to be a levy for thoroughbred breeders it should remain on a voluntary rather than a mandatory basis. Perhaps the Minister will tell us that he does not agree to it. I am merely reflecting the concerns expressed to me. Not every breeder knows how this levy will be calculated. It will certainly cost the average small breeder, who breeds a few horses every year, an extra £100 minimum to register a foal. If the foal is not registered it cannot compete, so there is a mandatory requirement involved. Over £500,000 will be raised, so a significant amount of money is involved. People have told me that the Irish Thoroughbred Breeders' Association represents approximately 10 per cent of thoroughbred breeders and the national hunt people fear that it is dominated by flat racers. I am reflecting these concerns so that the Minister can consider them. The point has been made to me that the bloodstock industry traditionally regulates its own affairs and the Labour Party was often accused in the past of wanting to regulate that sector.

Nationalise it.

Those days are gone. It has also been suggested to me that one cannot help but compare and contrast the imposition of this levy with the generous exemption tax regime of 1969. Why are we allowing this levy to come in at this stage? The Minister will have considered these points and will probably reply when I raise them again on Committee Stage.

I welcome section 12, which amends the Greyhound Industry Act, 1958, to remove the requirement for a ban on tote credit betting. That is an important change to the 1958 Act and is very welcome. If the Minister is giving these organisations the opportunity to regulate their own affairs, as he seems to be doing, the function of regulating betting office and greyhound tax should be carried out by Bord na gCon rather than the Revenue Commissioners. If one is going to bring these matters under the control of the governing body, it should have all the powers to regulate betting offices within its competence.

I welcome the broad thrust of the Bill. The reservations I have expressed are to provide food for thought for the Minister and are the concerns of those who have served this industry well on a small scale. Most of the measures will have little impact on the larger breeder or bookmaker but I always try to reflect the concerns of the small farmer, the small shopkeeper or the small bookmaker.

Deputies Collins and Foley are sharing time. Is that agreed? Agreed.

I compliment the Minister and his officials on this Bill. I am a keen supporter of the horseracing and greyhound industries and I take a special interest in this legislation. I acknowledge the wisdom and foresight of the Minister for Finance and the Minister for Agriculture and Food in tackling an obvious and serious defect in the betting and levies area in the horseracing and greyhound sectors.

People with a superficial knowledge of both sports could identify the black hole which both controlling authorities could not contain. It would be remiss not to pay tribute to a former Minister of State with responsibility for the greyhound industry for the role he played in the preparation of draft legislation for that industry. I refer to Deputy Deenihan who, as Minister of State, prepared widespread draft proposals for the overall amendment to the Greyhound Industry Act, 1958. I acknowledge that some of his proposals are in this Bill.

The funding mechanism and levy system under which the old Racing Board, the Irish Horse Authority and Bord na gCon were expected to regulate and develop both industries before the introduction of an annual subvention from the Exchequer at budget time was ludicrous. That those organisations were able to achieve substantial progress during these lean and difficult years is a tribute to the successful boards which had to work under this system. Were it not for the foundations that these boards laid by way of racecourse purchase and development, for example, the present boards would have faced substantially greater difficulties.

Following the reduction in the off-course betting tax from 10 per cent to 5 per cent under the Finance Act, 1999, and the related decision to reduce the on-course betting levies at horse and greyhound racing meetings from 5 per cent to zero, the Minister for Agriculture and Food and the Minister for Finance announced in February 1999 a range of measures to recoup to the Irish Horseracing Authority and Bord na gCon revenues lost to them by the abolition of the on-course levies. This Bill proposes to implement those parts of that package that require legislative change. Provision is made for a new 0.3 per cent betting turnover charge on all off-course and on-course bookmaker betting which may be increased by regulation up to a maximum of 5 per cent. There is a new flat rate charge of £2,000 on each off-course bookmaker's betting shop, which may be increased to a maximum of £5,000. There is also a flat rate charge for on-course bookmakers, the rate and method of calculation of which will be set by the IHA.

I am not opposed to an annual levy but one aspect of this provision concerns me. The proposal that all bookmakers, irrespective of their size, financial position or annual betting turnover, pay the same annual fee is a possible recipe for inequality, a point made by many speakers. I refer to the needs of small and medium sized Irish bookmakers. My understanding is that this fee, set at £2,000, will be levied on the small and medium sized bookmakers in every town in Ireland at the same level as the larger organisations. We all see larger organisations coming into towns where they see potential and they are taking over small shops. I hate to see that because I believe there is room for the small bookmaker. I support the principle that the larger betting organisations should pay more than small and medium sized bookmakers. The latter have kept horse and dog tracks viable for the last century with the pitch fees they paid and they should be given recognition for their efforts.

This package also provides for an increase in the annual grant in aid to the IHA and Bord na gCon as well as the contribution to racecourses. There have also been proposals to empower the IHA to introduce a thoroughbred foal registration levy to fund the development of the thoroughbred horse breeding sector. This enabling provision is not connected with the other issues.

Section 5 provides that the proceeds of any foal levy, which may not exceed £600 per foal in the scale of rates, must be expended on the basis of a programme for the benefit of horse breeders to be decided by the authority after consultation with organisations representing thoroughbred breeders. The opportunity is being taken to update some of the provisions of the Greyhound Act, 1958, by introducing some of the changes that were effected in the horseracing industry by the Irish Horseracing Industry Act, 1994. These include giving Bord na gCon power to establish subsidiary companies and to enter joint ventures. It also provides for the removal of the ban on totalisator credit betting for greyhound racing, the introduction and regulation of on-course betting shops at greyhound tracks, the introduction by Bord na gCon of charges for services and the increase of fines for non-compliance with regulations under the Act. These new provisions are being introduced by means of Section 9.

The race going public must be protected at all times. The IHA and Bord na gCon should consider introducing codes of practice regarding betting operations for the patron who is supporting these bodies. Bookmakers must be required to open betting in good time before a race, to price all runners in a race and to accept minimum bets.

I welcome the proposal in Section 7 to extend the opening hours for the sale of alcohol at dog tracks but care must be taken that the business enjoyed for many decades by bars adjacent to tracks is protected. Section 6 extends the authorised hours for on-course betting offices from one hour to two hours after the last race. Section 10 provides for the zero rating of the existing 5 per cent on-course bookmaking levy for greyhound racing which is collected by Bord na gCon. It also provides for the imposition of a 0.3 per cent turnover charge for on-course greyhound racing bookmakers and includes an enabling provision to allow the board to introduce flat rate charges for on-course greyhound racing bookmakers or, in the future, betting offices, if it is deemed appropriate.

Section 10 also provides for the introduction and regulation of betting offices at greyhound tracks by Bord na gCon and for the equivalent of the new high street excise duty of 5 per cent on betting at those offices, or off-course type bets in the betting ring to go to the board rather than to the Revenue Commissioners. The latter provision will be commenced separately from other provisions of the Bill on the same date as section 75 of the Finance Act, 1996, removing the actual excise duty, is commenced. Similar enforcement procedures for the new charges that are described for section 4 are repeated here.

Section 11 increases the range of fines for breaches of regulations under the Greyhound Industry Act, 1958, from the present range of between £20 and £100 to a range between £500 and £1,500 and includes a minor technical legal amendment of section 6 of the Irish Horseracing Industry Act, 1994, relating to continuing contraventions of some provisions.

I support this legislation as an avid supporter of the horse racing and greyhound racing industries. However, the Government must be vigilant in enforcing the legislation and must, at all times, be open to suggestions regarding amendments to it. The interests of the general public must be protected. If they are not the lifeblood of the horseracing and greyhound racing industries will dissipate.

I thank Deputy Collins for sharing his time with me and I welcome this opportunity to comment on this very important Bill. I too, am an avid supporter of horse racing and greyhound racing. In his Budget Statement, the Minister for Finance recognised that a reduction in the off-course betting tax would have implications for the on-course betting levy of 5 per cent which the Irish Horseracing Authority and Bord na gCon collect on betting at race courses. Both bodies have invested heavily on improved facilities to attract new patrons. One of the encouragements given to punters to attend race meetings is the lower rate of tax-levy on on-course betting. To retain this differential and ensure that the increased attendances of recent years are maintained and improved upon, it is essential to eliminate or reduce the 5 per cent on-course betting levy. The elimination of the on-course levy would lead to an annual loss of revenue of more than £4.4 million to the IHA and £1.1 million to Bord na gCon. Accordingly, the proposal to eliminate the 5 per cent on-course betting levy could only be proceeded with if satisfactory alternative arrangements were made to replace the loss of revenue. It is estimated that these arrangements would need to yield revenue of approximately £6 million at projected 1999 levels.

The primary purpose of this Bill is to introduce a range of new betting turnover and flat rate charges on bookmakers operating at horseracing courses and greyhound tracks and in registered high-street betting premises to replace the revenue which will be lost to the horse racing and greyhound industries by the elimination of the 5 per cent levy.

The Bill proposes the total elimination of the 5 per cent on-course levy and the introduction of a 0.3 per cent betting turnover charge on all off-course and on-course bookmaker betting which may be increased, by regulation, to a maximum of 5 per cent. It proposes the introduction of a flat rate charge of £2,000 on each off-course bookmaker's betting shop which may be increased, by regulation, to a maximum of £5,000. This measure concerns me. An individual owner of a bookmaker's shop could not afford to pay this levy and an attempt to do so would put such a person out of business. Chains of bookmakers' shops could pay this amount with no difficulty but the levy should be reduced for single operators who are trying to make a living and give employement.

The opportunity is being taken to update some of the provisions of the Greyhound Industry Act, 1958, by introducing some of the changes relating to the horseracing industry that were given effect by the Irish Horseracing Industry Act, 1994. The main points are listed in the Memorandum to the Bill.

We are all aware of the Government's commitment to horseracing. This support takes many forms but the most tangible is the Exchequer investment which is channelled to the Irish Horseracing Authority. Over the past five years the Government has invested more than £42 million through this route. This year will see the investment of a further £14.8 million of Exchequer funds in the industry.

Capital investment aimed at upgrading and enhancing facilities at greyhound tracks has resulted in patrons enjoying a level of comfort consistent with Bord na gCon's objective of creating and sustaining a new positive image of greyhound racing as an attractive and exciting evening entertainment business. The turnaround in the industry began with the development of the modern stadium in Shelbourne Park in 1995 and the introduction, in 1996, of a colourful, professional and forward thinking approach to the marketing of greyhound racing. Over the past two years Shelbourne Park has become well known as a place to go for a fun night out with a difference. This now applies to the three greyhound tracks, especially during the summer season when people of many nationalities enjoy the sport. Thousands of new racegoers have enjoyed the excitement of greyhound racing. The success of the development and marketing campaign is apparent in the continued dramatic increase in attendances and betting figures since 1995. The Tralee greyhound track is one of the most successful outside Dublin.

The greyhound industry began 1998 in a position of strength with dramatic increases having been achieved in attendances and in totalisator and bookmaking betting in 1997. The strong results of 1997 were surpassed by an exceptional performance in 1998 with all key performance indicators showing increases on the previous year. Total betting turnover was up by 10 per cent with totalisator turnover, at almost £10 million, recording a 17 per cent increase while bookmaker betting turnover, at £22 million, increased by 8 per cent. Total attendances increased by nearly 10 per cent to 750,000. These increases augur well for the long-term viability of the industry.

I welcome the Government's commitment to the development of the greyhound industry. This support takes many forms but the most tangible is the direct Exchequer investment which is channeled through Bord na gCon. Over the past five years the Government has invested £17 million through this route. This year we will see the investment of almost £5 million in Exchequer funds in the industry. I appeal to Bord na gCon to consider substantially increasing prize money at greyhound tracks and particularly at the Tralee greyhound track which is very successful, thanks to the support it receives from the owners and breeders association. This support should be acknowledged by increasing prize money to 100 per cent and by introducing grant assistance to breeders and owners. I would also like to see owners and breeders represented on the boards of the various tracks throughout the country as they have expertise which has not yet been tapped and would certainly be a major asset.

It would be remiss of me not to acknowledge the input of my colleague, the former Minister of State, Deputy Deenihan, to the horse and greyhound industries during his term in office. I congratulate the Minister for Finance, Deputy McCreevy, the Minister for Agriculture and Food, Deputy Walsh, and the Minister of State at the Department of Agriculture and Food, Deputy Davern, all three of whom have in-depth knowledge of the horse and greyhound racing industries. I ask them to seriously consider the question of increased prize money for greyhound tracks. If that is not forthcoming, many owners and breeders will go out of business.

I wish to share my time with Deputy Belton.

Acting Chairman

Is that agreed? Agreed.

I welcome the opportunity to speak on a subject of which I know a certain amount, perhaps too much from a gambling point of view. I congratulate the Minister for Agriculture and Food, Deputy Walsh, for his genuine commitment to the racing industry. The Minister is a racegoer with a definite commitment, as is the previous Minister, Deputy Yates. Both men have a commitment to, a knowledge of and an interest in the racing industry, which their predecessors did not have. Given that commitment, the Minister's Department should take a wider interest in the horse and greyhound racing industries which over the years have been left to run on their own axis through Bord na gCon, the Turf Club and the Racing Board.

There have been many disasters during the years when Irish racing was not in a particularly good state. The beautiful metropolitan tracks at Baldoyle and the Phoenix Park were allowed to close down. Whatever about Baldoyle, which was a pleasant seaside track, the closure of the Phoenix Park racecourse was a national tragedy for the people of Dublin and the country generally. It is a national scandal that one of the finest tracks in Europe could have been allowed to close. It is not too late to save the Phoenix Park racecourse from the grasp of greedy housing developers. It should be preserved because Ireland leads the world in horse breeding and racing. I appeal to the Minister to save the Phoenix Park racecourse. If anyone can do it, he can. A lobby is still trying to preserve the course. The track is in such good preservation that race meetings could be held there again within a year. The stands are still there as is the general infrastructure. It is right in the centre of Dublin so let us save it now and not bemoan its absence in 20 years' time. It is like Longchamps in Paris – it has all the facilities to be a huge success in the years to come.

I do not intend to nit-pick about the very necessary changes to betting taxes envisaged in the Bill. It is a long road that has no turning, and that road started for the current Minister for Finance, Deputy McCreevy, and myself when 15 years ago we appeared at Naas racetrack and announced to the populace that we would not pay the penal 20 per cent betting tax. I wonder what sort of civil servant mentality produced that unbelievable tax on top of a losing bet.

Some self-righteous Members of the House wanted measures to be taken against us because of our refusal to pay the tax. The Revenue Commissioners interviewed us, although we had not committed any crime, except in the eyes of Mr. Gene Kerrigan of the Sunday Independent who felt we had. The bookmakers had committed the crime. Subsequently, the former Minister for Finance, Deputy Dukes, recognised the betting tax was penal and he reduced it to 10 per cent. The Revenue Commissioners thus gained a bounty because more people paid the reduced tax. The Minister for Finance, Deputy McCreevy, who understands the racing business like no one else recognised that the whole fabric of racing, particularly the betting industry, was in danger from offshore installations in the Isle of Man that were ready to start offering tax-free betting.

The racing industry employs more than 14,000 people. That is more than either the Army or the Garda Síochána. The racing industry will always exist because our climate, bad as it is, is very suitable for horse breeding. The animals thrive here and the industry is a major contributor to the economy. Our race horses and jockeys lead the world, both in national hunt and flat racing.

And our punters.

The industry should be recognised and cherished. The Minister and his immediate predecessor recognise the importance of the racing industry, but the Ministers who went before them did not.

The Departments of Finance and Agriculture did not really value the industry either. For example, over the past three years evening racing in Britain has been televised here, but the Department of Finance failed to recognise it or to allow betting offices to open in the evenings to cater for it. The Department has done so belatedly this year but not before millions of pounds in unpaid taxes had disappeared, with barroom bookies operating in every public house.

I echo the misgivings identified by Deputy Penrose who also understands racing. I would like to see him becoming Minister for Agriculture and Food at some future date because he has a commitment to racing. I occasionally accompany him to the races. I will see him at Kilbeggan on Monday night, hopefully with a winner. Deputy Penrose expressed fears about the £2,000 sum that bookmakers must pay. The majority of them have no difficulty with that, but in small rural villages and hamlets there are unique establishments that do not even have the SIS commentary and results service. For such establishments a payment of £2,000 is a bit stiff. Perhaps a sum of £1,000 would have been more appropriate.

I also echo Deputy Penrose's comments on the £600 registration fee. It is a sad fact of life that while all racehorses look lovely, many of them do not perform particularly well. Only 10 per cent of owners experience a win with their horses. To impose a registration fee of £600 on a national hunt foal – of which there are hunderds in the country – which might never be worth £600 and may be sold for use in a cannery is a bit stiff. Some of the high rollers, the sheiks and so on, would not have a difficulty paying that fee, but it is a hefty fee for some small farmers who traditionally like to breed one or two horses.

I am sure the Minister will agree with me in regard to policing at Irish race meetings. A question mark has hung over the cleanliness of Irish racing. I suggested on previous occasions that Irish racing was less than clean and that it was less clean than its British counterpart. It is more than 40 years since a person has been warned off for malpractice on an Irish race track. In England, there are continual inquires in this regard. There was a celebrated case two years ago in which Kieren Fallon was exonerated in a libel charge of pulling a horse. There should be similar transparency here. Inquiries should be made more public. There is always the possibility of horses being pulled or doped. That aspect needs increased surveillance. I would like the Minister to encourage that at his meetings with the Turf Club.

It is an open secret that at least ten Irish tracks are in danger of closure over the next ten years. As Deputy Penrose said, one must applaud the efforts of Kilbeggan, which was about to be closed, but the people of Westmeath flocked to it as if to a country fair, with the result that they now have large attendances at race meetings. One must also congratulate Tramore racecourse, which was also about to be closed but is doing well as a result of local investment.

I want to shed a tear for the racecourse in my native town of Dundalk, which has struggled over the past 30 years due to the war zone on its doorstep, which frightened many racegoers from attending race meetings there. As Deputy Brady would acknowledge, Navan also felt the impact of being close to the Border but it is now doing well. Dundalk racecourse suffered dreadfully from its geographical location. It requires special assistance but such assistance has not been forthcoming from the Racing Board. One could point a finger at the allocation of lucrative fixtures. The metropolitan track in Leopardstown and the Curragh, which also has a type of metropolitan track, get all the lucrative fixtures. There are also race meetings in Kerry and Galway, but they are only seasonal.

The Dundalk race track should get significant financial support. There is a proposal to merge it with a new greyhound track but its requires more help than that because it has suffered greatly from its proximity to the Border. Will the Minister use his influence with the Racing Board to support this race track which is struggling to survive. There has been racing in Dowdall's Hill for more than 100 years and we want it to continue well into the next millennium.

I congratulate the Minister on his commitment to racing. That is not a platitude. I am not very platitudinous and if I felt he deserved a brickbat, whether he was a member of Fianna Fáil or my party, I would say it. He has a genuine commitment to racing. I do not attribute the present healthy state of the Irish racing industry to his efforts, given that the Celtic tiger has had something to do with it, but he have made a definite impact on it and I hope he will continue to do so.

I wish to share my time with Deputy Michael Kitt.

Acting Chairman

That is agreed.

It is difficult to follow Deputy McGahon who has great experience in this field.

The Deputy would not want to follow his tips.

My first experience of racing was when I earned a few bob during the school holidays and saved it to attend point to point meetings at Crossakiel or Lloyd. Deputy McGahon will probably remember them. On one occasion I had saved £3, which was a good deal of money at that time, and I lost it to the three card trick boys, not on a horse. That finished me with betting and racing.

I support this Bill and compliment the Minister on his interest in the racing industry which is second to none. I compliment the Ministers of State and himself on the marvellous work they are doing in this area.

Horse racing and greyhound racing are major industries in this country. They provide thousands of jobs and contribute greatly to tourism and to the national economy. The 10 per cent levy on betting tax became an incentive to the betting public to use offshore tax free telephone betting. While the level of that type of betting did not make a major impact on excise revenue, the problem was increasing. Tax on betting brings in £45 million per annum and it is necessary to protect that source of revenue. The best way to do is to reduce the rate of tax here to internationally competitive levels.

The Finance Act, 1999, provided for a reduction from 10 per cent to 5 per cent in off-course betting tax. The on-course 5 per cent levy was abolished. The proceeds of the 5 per cent on-course betting has being going directly to the Irish Horseracing Authority and to Bord na gGon. To attract new patrons, in recent years these bodies have, with the help of Exchequer funding, invested in improved facilities. This investment is best protected by large attendances. There has been a dramatic increase in the numbers attending race meetings in recent years.

Punters are enticed to race meetings not only by better facilities but by being able to place their bets at a lower tax rate. It is only reasonable to expect that a reduction in betting tax or its elimination would have a very positive effect on attendance at meetings. However, the elimination of on-course taxes means a revenue loss of £4.4 million and a loss of £1.1 million to the Irish Horseracing Authority and Bord na gCon.

Alternative provisions need to be made to compensate for these losses and the Bill proposes to address this. A package of provisions is necessary and the Bill proposes to implement those parts of the package that require legislative change. Provision is being made for a new 0.3 per cent turnover charge on all off-course and on-course betting in bookmakers. It proposes a flat rate charge of £2,000 on each off-course bookmaker's betting shop and a flat rate charge on on-course bookmakers. The Irish Horseracing Authority and Bord na gCon will benefit from an increase in annual grant aid and from contributions from racecourses.

The Bill also proposes to empower the Irish Horseracing Authority to introduce a thoroughbred foul registration levy to fund the development of the thoroughbred horseracing sector. It also provides an opportunity to upgrade some of the provisions of the Greyhound Industry Act, 1958. These include giving Bord na gCon power to establish subsidiary companies and to enter joint ventures. There is great scope for expansion within these industries. The Government is committed to the future development of the industry and the Bill is a positive step in this regard.

The Bill also includes a number of relatively minor technical amendments to the Irish Horse racing Industry Act, 1994, and the Betting Act, 1931, as well as a small liberalisation of the provisions of the Intoxicating Liquor Act, 1962, to allow the bars etc. at greyhound tracks to remain open for up to two hours after the last race instead of half an hour. This is welcome. The only direct charge on the Exchequer in these proposals is the increase in the grants-in-aid to the IHA and Bord na gCon by a sum equivalent to 0.3 per cent of the off-course betting turnover which will cost in the order of £1.7 million annually. This measure will be dealt with in the Department's Vote and is not referred to in the Bill.

The horse racing industry is very important and provides about 25,000 jobs as well as substantial benefits for tourism, rural communities and the economy in general. The main and most immediately noticeable feature of the recent development of this sector is the creation of the many new and upgraded racecourse facilities. The provision of better facilities and racing for the general public continues to be one of the prime objectives for all racecourses together with improving the working conditions for people working within racing.

In 1996 the Irish Horseracing Authority produced its five year strategic plan, of which the establishment of the capital development fund was the most important element. The fund, which has been increased twice since it was set up, will see investment in racecourses of a total of £60 million over a relatively short period. Grants in the region of £21 million for the upgrading of racecourses have already been approved involving some assistance for almost every racecourse in the State. I welcome the improvements to the racecourse in Navan which is one of the finest racecourses in the country.

Irish racing enjoyed another excellent year in 1998. The upward trend in betting, attendance, prize money and sponsorship of recent years continued and in virtually every area of performance the targets set in the strategic plan were surpassed: total betting was up by more than 10 per cent, attendances were up by 5 per cent to well over one million, with sponsorship and prize money showing significant increases of 15.3 per cent and 10.5 per cent respectively.

Obviously the industry needs to build further on the performance of recent years if it is to achieve the long-term targets set by the authority in its plan. Much more needs to be done to make the industry more successful commercially. The authority has taken a number of initiatives aimed at improving the returns which owners get from their investment in racing. Last year the total prize fund exceeded £16 million, rising to £20 million this year. Last year was also the first year of the new sponsorship incentive scheme which contributed to a growth in sponsorship of more than 15 per cent.

I compliment the Government on its interest in the horse racing industry. The greyhound racing industry is another very important industry. Navan has a fine greyhound track although unfor tunately I understand it is to close down and move elsewhere. However, it will still be close to Navan, which I welcome. Where I live in north Westmeath we are near very good greyhound tracks in Mullingar and Dundalk. This area has good facilities established by Bord na gCon. I thank the Minister and the Minister for Finance for the work they have done for both these industries.

I thank Deputy Brady for sharing his time. I congratulate the Minister for Agriculture and Food, the Ministers of State at that Department and the Minister for Finance for introducing this wise and prudent Bill which enacts the provisions of the Finance Act, 1999. This Bill is important because it has become obvious in recent years that the competitiveness of off-course bookmakers is being threatened by the promotion of offshore tax-free telephone betting services. With the development of telecommunications it has become much easier to place bets. This is a real threat.

As a politician I would be slow to condemn some gambling which is taking place because we are gamblers of a certain type ourselves. There is such a thing as a compulsive politician as well as a compulsive gambler. There are now many opportunities to place bets, whether on horse racing greyhound racing or any other sporting event. In order to counteract the effect of the new telephone betting services and to protect revenue to the Exchequer, it was important that the Minister for Finance provided in the budget that the rate of excise tax applied to off-course betting would be reduced from 10 to 5 per cent from 1 July 1999.

This is an appropriate date as the famous Galway racing festival will take place at the end of July. I would like to take this opportunity to thank the Minister for his great interest in the development of the new millennium stand at Galway racecourse of which he turned the sod. The Taoiseach will open the stand on 16 July to be ready for the Galway festival. There is a great deal of talk about the colour of Cheltenham. However, I am biased. The Galway racing festival is one of the great festivals. It has an extra day of racing this year. The management there told me that the new development cost £6.5 to £7 million, with welcome grant aid of £2.2 million. The development of the stand generated employment and it is now one of Galway's showpieces.

I am concerned about the increase in the attendance fee, not only for Galway but for other racecourses. If £400,000 is collected from racecourses, there will be pressure to increase fees further. I would caution against this because I would not like the entrance fee for a traditional festival such as Galway to be increased further because of its popularity.

The Minister and Minister for Finance have recognised that there are great opportunities for job creation in this industry. The Irish Horserac ing Authority and Bord na gCon have invested heavily in improved facilities to attract new patrons. Punters are encouraged to attend race meetings and place bets by the lower rate of tax. It is important to reduce or eliminate the 5 per cent on-course betting levy in order to retain the differential and ensure the increased attendances of recent years. I cannot let the occasion pass without referring to the great success of Bobbyjo, which is owned by people from Galway, the Burke family from Mountbellew. It was trained in Deputy Brady's constituency by the great Tommy Carberry and was ridden by his son Paul to win the Aintree Grand National this year and the Irish Grand National in previous years. Tommy Carberry also won a previous Aintree Grand National on L'Escargot. I congratulate all involved in that great win, which was as welcome to us as winning the Sam Maguire last year.

However, there is always a danger that some bookmakers, particularly the smaller ones, may experience difficulties after a popular local win. I have no great sympathy for bookmakers. However, there are major and smaller operators in all businesses, such as small shops competing against supermarkets. As the Minister said, there is a flat charge of £2,000 on each off-course bookmaker, which might be increased to £5,000. There is always a danger that smaller bookmakers might go out of business, resulting in job losses. If the principles of equity are to be applied, bigger bookmakers should pay higher taxes and levies. I do not know if that can be done but I would make a strong case for it to prevent smaller operators being put out of business.

The Minister stated this Bill is introducing a range of new betting turnover and flat rate charges on bookmakers operating at horseracing racecourses and greyhound race tracks. This is very welcome. The proposal to eliminate the 5 per cent on-course levy and introduce a 0.3 per cent betting turnover tax is also welcome. I have already referred to the flat rate charge. I hope the Minister will look at that again for the smaller bookmakers. The introduction of a flat rate charge on on-course bookmakers, the rate of which will be set by the IHA, is also welcome.

I welcome the Minister's introduction of a plan to improve the greyhound race tracks which he listed. I am very familiar with the one in Galway. There are also plans to develop the tracks in Harold's Cross, Dundalk, Limerick, Newbridge, Mullingar and Kilkenny. It is also hoped to have further development at Shelbourne Park.

The greyhound industry owns the tote, which is a different situation to that of the horseracing industry. The horseracing industry is worried it might be at a disadvantage in that regard. There has been very significant advertising by the greyhound industry of what is known as "a night at the dogs". I hope we will continue to promote both the greyhound and horseracing industries.

The proposals in the Bill are very welcome. I ask the Minister to look again at some of the provisions for smaller bookmakers. We should keep the attendance fee as low as possible. It is a very popular sport and we do not want to restrict it to the realms of big business and the very rich. Horseracing is the sport of kings. It is very popular in my county of Galway and I would like it to continue to develop.

I wish to share my time with Deputy Bradford.

Is that agreed? Agreed.

I welcome the opportunity to speak on this Bill and I congratulate the Minister on the work he is doing. We must be fair to his predecessors, Deputies Yates and Deenihan, who took a great interest in the development of the horse racing and greyhound industries.

Irish horses are known throughout the world for their great breeding, etc. The racing industry has become a major business. I am glad the Minister is very much aware of that. His investment of Exchequer funding into the industry must be welcomed. For example, there were 12 or 14 divisions of racing at one point-to-point meeting this year. That is an indication of the number of horses there are and the number of ordinary people who now own point-to-point horses. There is now a large number of jobs in racing. Tourists are now coming to Ireland for summer race meetings.

I particularly welcome the location of the headquarters of the auto tote and the Irish Horseracing Authority in Ballymahon, which is beside my home. I know the auto tote people. They were having some problems a few years ago in terms of their survival in Ballymahon and this is a very welcome boost to their business and to County Longford, which needs all the industry and employment it can get. I congratulate the auto tote on winning this contract. I hope it will have a very successful partnership with the tote.

The Longford greyhound track is one of those that has survived. There has been some development there recently but more must be done. I ask the Minister to make a special note of Longford greyhound track and to give it some funding. It serves the areas of Sligo, Roscommon, Mayo and Cavan. It is a very important centre and any assistance the Minister can give to the track will be extremely welcome.

Other speakers referred to the £2,000 licence. The Minister should look at that again in terms of the smaller bookmakers who serve areas with small populations.

The racetracks of Roscommon and Kilbeggan are a success story. A great deal of development has taken place there and funding has been provided. The track in Sligo is also quite close to my home. It has provided new parking facilities this year but it could do with a further financial boost. The Minister should look at that. Sligo racetrack is very popular and receives a great deal of support from the North. The Minister was recently in Kilbeggan to open its new stand. Kilbeggan and Roscommon are going from strength to strength. It is a great boost to the midlands that the racetracks are doing well. I visited Tramore last summer and I saw the great effort that has been made in the racecourse, with support from the private sector. Our colleague. Deputy Perry, sponsored a race at a recent meeting at Sligo racecourse. The business interests are lending their support to racing and the Minister can further encourage it by providing the necessary funding to the race committees. Now is the time to fund racing when the resources are available.

The smaller and less well known racetracks – for example, the dogtrack in Longford and Sligo racecourse – need support. The private sector will support the racecourses that have been upgraded.

I support this Bill and I encourage the Minister's efforts to improve the racing industry right across the board. Racing is a tourist attraction and people are now taking "racing breaks" in Ireland. The Minister is doing a good job and I hope he gets a few winners.

I welcome this Bill and commend the Minister for bringing it forward. The previous speakers referred to the Minister's personal interest and commitment to the racing industry. He is building on the foundation that he had laid and which had been further developed by Deputies Yates and Deenihan during their term of office.

Racing may be seen as a minority interest, but it is an industry that employs 25,000 people across the length and breadth of the country. There are not as many employed in the greyhound industry, but hundreds are employed or occupied full time in that industry. We are talking about securing the future of at least 25,000 workers. The workers keep the industry going and what is good for the industry is good for those who work in it.

Racing may not be the most popular sport and would have to defer to gaelic games, football, hurling, soccer and rugby, but no other sport could claim to have the same employment levels as racing. I fully support measures to develop, protect and expand racing.

We were all pleased when the Minister for Finance, Deputy McCreevy, intimated in his Budget Statement last December that he would bring forward changes to be announced at a future date. I welcome the tax and levy changes which can only be for the good of the industry because the money was flowing out of the country and these changes will help to keep the money at home and retain jobs in Ireland. We should support that approach.

Deputy Penrose and others questioned the changes and perhaps we can tease them out on Committee Stage. I concur with those who queried the flat rate £2,000 levy on each high street bookmaker's shop, because not all bookmakers do the same level of business as Ladbrokes or Paddy Powers and some operate on a very small scale. People who do not know the racing industry may think that every bookie is a millionaire, but in each given year many small bookies have to close shop. A levy of £2,000 on a small bookmaker is a heavy burden and I ask the Minister to consider a variable levy, hitting harder on those who can afford it most, for example, the bookmaker chains. In the long-term it would be bad if the small town bookmaker had to close because of the levy.

I welcome the reduction from 10 per cent to 5 per cent in off-course betting tax and this should make a difference. Perhaps only a few were availing of off-shore telephone betting and Internet betting, but it is much better to keep the money in the country.

We were fixated by the idea of higher taxes but the man on the street knows that when taxation is reduced, extra economic activity is generated which produces more not less for the State coffers. I have no doubt that the tax reduction in off-course betting will significantly increase revenue. The elimination of the on-course levy will be welcomed by all those who attend race meetings.

I hope the Minister will think long and hard about devising a mechanism for introducing a levy on the registration of foals. I know the section will not be implemented immediately but within a year or two the levy will be introduced. We have had debates on measures to assist the people engaged in horsebreeding on a small scale because few are at a level with John Magnier of Coolmore Stud. We wish Mr. Magnier and his colleagues well but the majority of horsebreeders run small enterprises and we must try to target assistance at them. The National Hunt foal sales statistics show that hundreds of foals are sold for less than £1,000. I hope these breeders will not face a registration fee of £600. I hope there will be a variable fee so that those who breed foals that sell for under £1,500 will face a minimal registration fee. Without an increase in the numbers attending race meetings, the industry does not have a long-term future. There has been a noticeable improvement in attendance and I trust that the numbers attending greyhound meetings have improved significantly.

We cannot, however, rest on our laurels. There must be more improvements. The promotion of racing is lacking. We restrict our appeal by always attracting the same small pool of people. Almost every man, woman and child would be interested in attending one horse racing meeting or one greyhound meeting during the year if it was better promoted. Many people go to the races but they come from a small pool. More advertising by the racecourses, the Irish Horseracing Authority and the Department is needed. We are not just selling a sport, we are selling an industry. Every other industry is promoted and marketed to a great extent. We should do the same for the horse racing industry. Much more progress could be made in that area. The Minister is aware of the tremendous work at the racecourse track in Mallow. We spoke at a meeting there about the relatively disappointing attendance at some meetings. Much of that stems from the need for more advertising and promotion for every racecourse in the State.

When the Minister is having discussions with the Irish Horseracing Authority he should ask it to examine admission fees. A fee of £7 or £8 per adult is too high for many people. For those who attend regularly and who are used to paying the charge, it becomes just another expense. For those whom the Minister is attempting to attract to racing for the first time, admission fees of up to £10 could be off-putting. If there was a special month for promotion of Irish racing with cut price admission, it would encourage more people to go racing for the first time. When those people go once, the likelihood is that they will return. On occasions such as derby day a premium is justifiable, but admission may be too high at many tracks and it does not attract punters.

RTE coverage of Irish racing is a disgrace. When sports such as rugby is promoted to such an extent, the coverage of racing is disgraceful. Those in RTE should remember that this is more than a sport, it is an industry which employs 25,000 people. The more televised coverage racing gets, the better the prospects for increasing the number of people who will attend race meetings and join horse owning syndicates. RTE should provide a better service. We have seen coverage go from bad to worse to non-existent. Some racing journalists have written about this but we are yet to receive a satisfactory explanation from RTE as to why they are almost ignoring Irish racing.

I hope the Minister will take these points on board. This legislation and the Minister's plans for the horse racing industry will be important for the 25,000 people working in the industry. The Irish horse is our oldest athlete and we should be very proud of the horse racing industry.

(Dublin West): This Bill is a disgrace. It is an insult to the thousands of men and women who work in the horse racing industry, the tens of thousands who attend racecourses and greyhound tracks and the taxpayers. The Minister proposes to levy a charge on the racecourse and on the taxpayer to fund the Irish horse racing industry. The Minister boasts about the provision of £21 million in grants to subvent racecourses. He then comes into this House to raise further finance for the Irish Horseracing Authority and brazenly ignores the incredible favouritism shown in tax matters to a small cabal of the extremely wealthy people who control the horse racing industry in this State.

It is incredible that the Minister would come here with such a Bill to impose levies on ordinary people while ignoring those in the industry who earn tens of millions of pounds each year as stud farm owners and do not pay a penny in tax. It is incredible that not only are these people not paying tax but they are frequently lionised by representatives of this and previous Governments and the media.

A small cartel of tax dodging multimillionaires controls the industry while ordinary people pay the price. Coolmore Stud, owned by some of the foremost millionaires in the State, is like a private mint for those owners, with the money they earn each year absolutely tax free. Their best known stallion, Saddlers Wells, had a covering fee of £100,000 a few years ago. There was a figure for 1997 of 153 coverings by that stallion. Being conservative, perhaps 100 of those covers bore fruit. That amounts to a cool £10 million absolutely tax free for the millionaires who own that stud farm. That is only one of dozens of stallions for which there is a range of fees.

This is a money printing industry which the Minister ignores in coming here to impose levies with this Bill. I would like the Minister to address why the Government continues to show favouritism to this golden circle which blatantly abuses taxpayers and is entirely protected by law. We have seen a monopolisation of the horse racing industry in recent years. A group of millionaires has been able to gain control of the industry and small people are being frozen out. I believe 70 per cent of all stallion coverings are controlled by Coolmore. At one time small time breeders, trainers and other people could have shares in the stallions and there was a more dispersed interest in the sense of ownership. That has been completely closed off by virtue of the fact that a small group of very wealthy individuals have gained control of the industry and run it as a personal fiefdom for the massive profits they earn. Up to 40 small stud farms have closed in the past 20 years or so, as this powerful monopoly gets a grip on the horseracing industry and effectively takes over.

Men and women working in the horseracing industry who ride out the horses, help with the training, exercising, cleaning, brushing down, watering and feeding and who are on low wages for the most part are taxed to the hilt in the same way as PAYE workers while their employers who gain tens of millions of pounds in profit each year do not pay one penny. The Minister has some neck to come to the Dáil to raise further levies while being completely silent on this abuse of the taxpayer and the worker in the industry and of the racegoing public. Women in my constituency get up at 4 a.m. and 5 a.m. to do a few hours cleaning jobs to put a few shillings together for their families and are taxed on it. Yet Mr. Magnier and the rest of them do not pay one penny in tax on these dealings amounting to ten of millions of pounds.

It is not appropriate to name individuals who are not Members of the House.

The Deputy is being consistent.

(Dublin West): The individuals I am naming are very powerful. I would not abuse the privilege of the House to name small people.

There is a tradition here that people outside the House are not named.

(Dublin West): The people who are leading the taxpayers by the nose should be known. To add further insult to the injury which is there already many of these are tax exiles. One of these people who benefits to the tune of tens of millions of pounds tax free is a tax exile in Barbados. Another person who is closely associated and benefiting from the industry is a tax exile in Switzerland. These are some patriots that are lionized by the Government and the media. The truth has to be told about this matter on behalf of the people who do not have a voice in the Dáil and I will tell it.

It is hardly any wonder a former Taoiseach who introduced zero tax rating for stud farms had as one of the gifts he asked from a benefactor, a 60 acre stud farm. The former Taoiseach would have known how lucrative that gift would be as an ongoing source of revenue. Another concern that is not addressed in this Bill is that there is no democratic check on the Irish Horseracing Authority, which is under the control of the Minister, to supervise the horseracing industry. There is no democratic input by the tens of thousands of people on whom the industry depends, those who go to the races.

It is incredible that the Horseracing Authority is top heavy with people who have a vested interest in the horseracing industry. The chairman of the Irish Horseracing Authority owns a stud farm. Other people have lucrative positions in the industry. These are the people who regulated and advised the Government. Is the owner of a stud farm likely to advise the Government that the situation is blatant because of its tax free status and instead of coming in here boasting about providing Exchequer funds to subvent the racecourses that there should be a levy, similar to that paid by PAYE workers, on the stud farm industry which would go to subvent the horseracing courses and the industry? He is unlikely to give that view.

This blatant situation has led to the scandalous recent rezoning of the Phoenix Park which is now earmarked for housing. The Minister has ignored the appeals of the racing club of Ireland, people who have the genuine interests of horseracing at heart. The Irish Trainers Association appealed that that racecourse be opened as a premier race track which they had no doubt – they are experts in the matter – would be a profitable venture and had been a popular location up to the time of its closure in 1990. What happened? Some of the luminaries who control the horseracing industry got their hands on the Phoenix Park racecourse, ran it down and closed it in 1990, allegedly because it was losing money. They sat on it for a number of years so that they could speculate on it, to increase its value, to have it sold off for housing. These people have demonstrated some commitment to the horseracing industry. The housing crisis and the obscene speculation in building land tied in with their plan so that there is a reported £34 million involved in its value if its goes for housing. Another Deputy has asked the Minister to tackle the problem. I also ask the Minister to look carefully at the case put forward by the Phoenix Park Racecourse Preservation Society to have it saved from the grip of the developers and redeveloped as a racecourse. It should be compulsorily purchased, not at the amount speculated but at a reasonable value. After all, those who own it are multi millionaires and have made their money many times over.

It is difficult to get the full story about the Phoenix Park Racecourse Company. One of its directors, last year, was listed as a company: Risorgimento Investment Holdings Limited, East Hill Street, Post Office Box N3024, Nassau, Bahamas. The control is moving out of this country and we have Governments which step aside and are utterly silent on this matter. A whole range of interests are intimately involved with racing and their only interest is to see the sport run in a fair, equitable and democratic way.

They want to see this disgrace reversed. They also want to see what was a premier and popular race track reopened. It is for the Minister to ensure he assists them in bringing this about.

There is a contrast between the speed of the Government's response to the needs of vested interests in the racing industry and the way children in working class communities in Dublin, who had, and have, a genuine love for horses, have been treated in recent years. We were all agreed that horses could not wander and create a danger in public streets or parks. We proposed constructive measures by which this passion, the love of horses, which has been part of working class culture in Dublin for generations, could be facilitated, developed and become a positive aspect of this city and other parts of the country. Instead, there was a brutal, smash and grab raid by the local authorities at the instigation of successive Governments to deal with the problem in a crude way instead of addressing it by providing land banks and facilitating clubs and measures by which those involved could be trained in all aspects of horse care to enable many of those involved take up employment in the industry, which cannot fill the vacancies that exist at present. After long and hard work a few clubs are being facilitated by Government, which we welcome. However, it is nothing compared to what could have been done and more is required.

Working class children do not have many representatives in Dáil Éireann, but when the princes of the horse racing industry and tax exiles deign to return to the country they can meet the powerful representatives of the major political parties in clubs and elsewhere and have whispered in Government ears what they want for the industry. The Minister duly obliges.

I have to tell a sad tale here today. It is necessary to put a corrective to what the Minster and others have said in this debate in what was more like a chat in a snug among a few stud farm owners after a race meeting, when it should have been a dispassionate and objective look at the industry. In introducing this Bill the Government is standing over the inequalities in the industry.

While I welcome the Bill I am concerned about a couple of the proposed measures. In addition, some issues which have not been included should have been addressed. The Bill is consequent on the measures announced by the Minster for Finance in last year's budget when he signalled changes in the betting tax and the betting levy.

It is wrong to suggest the Bill has been introduced merely to address the concerns of the wealthy. There have been major changes to the betting industry world-wide. In Europe, Gibraltar and the Isle of Man off-shore tax free telephone betting services are advertised and provided on a regular basis. Many of the bigger punters have availed of them. To protect the revenue to the State and to allow the industry to develop it was important to introduce new measures. The Minster has attempted to deal with the problem in an honest way.

While I appreciate there was widespread consultation prior to the introduction of the proposed £2,000 charge on off-course betting shops, the measure is unfair and will create unnecessary hardship, especially for some of the smaller operators. Most towns throughout the country have a betting office, but, unfortunately, the bigger firms appear to be taking over and there has been a reduction in the number of betting offices in the country. It has become more expensive to keep a betting office, given the extra costs involved, the need to provide live pictures and to cater to later opening by race tracks. In consequence the proposed charge of £2,000 will be the death knell for some of the smaller operators. Given this, the levy should apply to turnover, which would mean that the bigger shops paying a higher proportion. Given also that the reduction in the betting tax rate from 10 per cent to 5 per cent will significantly increase turnover in the betting shops, the bigger shops should have been asked to shoulder most of the cost.

With regard to the proposal to apply an 0.3 per cent betting turnover charge on all on-course and off-course betting, I am not clear if the Irish Horseracing Authority is responsible for the on-course aspect or if it will be left to Revenue to monitor the off-course betting. I understand the industry and those directly involved are happy with the measure and believe it will work.

There has been major investment in the facilities provided by the horse racing and dog racing industries, especially the dog racing industry. At one time many involved in the industry believed it had little or no future. However, there has been major progress, especially at Shelbourne Greyhound Stadium. A number of provincial tracks are making similar progress. They are taking the right course of action and I hope it continues.

At a time when the Celtic tiger is thriving the horse racing industry is doing exceptionally well. However, stable staff members are often neglected by the industry. For many years they have been correctly referred to as the backbone of the industry and it would not have made the progress it has in recent years without their work. Staff members should be represented on the Irish Horseracing Authority. It would give them a voice and would be a step in the right direction. A number of issues must be tackled in this area. Conditions must be improved and there is room for greater progress.

I welcome the Bill and thank the Minister for introducing it. I will comment further on it on Committee Stage.

I thank the Deputies who contributed to the debate. I will thoroughly consider their views. Approximately 25,000 people are employed in the Irish horse racing industry nationwide and approximately 10,000 are employed in the greyhound industry. It is a very important sector of the economy and makes a big contribution to the tourism and leisure industries and the international image of the State, including the role played by local communities. I thank all the leaders of the industry for the contribution they have made over the years, including Denis Brosnan, chairman of the IHA, Paschal Taggart, chairman of Bord na gCon, and his predecessor, Mr. Kevin Heffernan.

They certainly have been selfless in their support for the industry and it has gained substantially from their contribution.

Question put and agreed to.
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