Dáil Éireann debate -
Tuesday, 4 Apr 2000

Vol. 517 No. 3

Adjournment Debate. - Horseracing Industry.

Mr. Bradford

I am glad to have the opportunity to raise this matter which will allow the Minister to put on record his thinking in this area. I hope the Whips can arrange statements on this matter in the near future. Many Deputies would like to comment and support the Minister's efforts to ensure proper funding is provided for Irish horse racing. A broader debate on this matter is required at the earliest opportunity.

The horseracing industry does not only involve sport. It directly and indirectly employs tens of thousands of people. It is one of our great natural resources and assets and anything that can be done to advance the horseracing industry should be supported by all Members of the House. In that context, I welcome the proposals of the Minister for Agriculture, Food and Rural Development, Deputy Walsh, and his colleague, the Minister for Finance, to put the funding of the horse-racing industry on a more sound footing. They will ensure that the whims of the Minister for Finance of the day will not matter and that there will be proper planning and development.

Unfortunately, many problems still affect the horse racing industry. People who only read about Cheltenham and Aintree and see big crowds at the Curragh might think everything is rosy in the garden. However, there are many problems with regard to attendances, facilities, prize money and the age profile of people involved in the industry. All these matters must be addressed, but that cannot be done without a firm financial basis. The proposals of the Minister and the Minister for Finance to give guaranteed funding to the horse racing industry must be welcomed.

Will the Minister respond to the concerns of people that the income from betting taxes will not be as substantial in the future if off-shore, Internet and other fancy forms of off-course betting become the norm? What will be the position at that stage? It appears laudable and welcome to guarantee the horseracing industry that it will receive the entire betting revenue. This involves a large amount at present but what is the Minister's response to people who warn that, in the future, the money available from the betting industry will be significantly reduced and that an increasing number of punters will bet off-shore? What guarantees can be given to the horseracing industry at that stage?

The various agencies which run horseracing at present, which include the Irish Horseracing Authority, the Turf Club and The Association of Irish Racecourses, all have their positions on the Minister's proposal. The fact that several agencies are running horse racing is an example of the current problem. One cannot have three masters. An industry as big as the horseracing industry needs a single guiding star. Traditions die hard and it is difficult for people who held positions of influence and power and used them properly and effectively to accept that somebody else may take over. However, changes are necessary. We cannot rest on our laurels and the problems would be best addressed by a single agency as proposed. Many of the queries from the Turf Club and The Association of Irish Racecourses are genuine and need to be answered.

I look forward to the Minister's response. What is the timescale for the proposals? The Minister for Finance promised money but we all know he is a man of independent thinking. If progress is not seen to take place as quickly as he would wish, he might reflect on the situation. Will the Minister outline how long the offer will remain on the table? Will he shed some light on why there appears to be growing opposition to his proposals?

Minister for Agriculture, Food and Rural Development (Mr. Walsh)

I thank Deputy Bradford for raising this matter in a constructive way. He made the point that racing is more than just a game. It is an industry which employs approximately 25,000 people and contributes to the tourism industry and the culture of being Irish. It is no longer a case of a few non-residents having horses in training in Ireland. Members of the House can claim to have some interest in the industry. One needs to win approximately four races each year to keep a fairly moderate horse in training. Therefore, there is a need for reasonable prize money. One must also pay for the day out and the bottle of champagne, etc.

In the early 1990s, we established the Irish Horseracing Authority to provide the industry with a new impetus. During the term of office of my predecessor, Deputy Yates, the industry also developed. In the past decade approximately £60 million has been invested in upgrading facilities throughout the country. As a result, we now have good tracks, stadia and restaurant facilities.

A number of months ago, the Minister for Finance indicated that, if a more streamlined structure was put in place, he would be prepared to place the industry on a secure footing in terms of funding by attaching it to off-course betting in the future. He invited the Turf Club and the IHA to develop a response to his proposal and since then discussions have taken place among the various interested parties. Members of the media have been trying to be as destructive as possible in respect of this matter and have been using inflammatory language, including words such as "take-over", "nationalisation", etc. That is not the way it is supposed to work. People involved in the industry must reach a consensus on the way to proceed.

It is very important that a consensus is reached because in the 1980s the horseracing industry was stagnant and even in decline because other leisure activities were becoming more popular. Now, however, attendances are on the increase and 1.3 million people attend race meetings in Ireland each year. We have an outstanding breeding industry. There are more group and multiple group one stallions and classic winners standing in Ireland than in any other country. We have the best bloodlines in the world and we are in good shape. However, as Deputy Bradford stated, we cannot rest on our laurels. We must keep ahead of the competition and ensure that Irish racing remains on a par with international standards.

Talks on the issue have taken place between the IHA, the Turf Club, the Association of Irish Racecourses, on-course bookmakers, trainers, owners and breeders and, while progress has been slow, I am confident that firm and progressive proposals will emerge in the near future. Discussions on the subject are continuing with the various organisations and the IHA. At a board meeting yesterday, the IHA reaffirmed its commitment to my initiative in this area. I am assured that a satisfactory outcome, which will be to the long-term benefit of the industry, will be achieved. I ask that these proposals be considered in a constructive spirit and that the interdependence between the different elements of the industry be taken into account.

Deputy Bradford asked two question, the first of which involved Internet betting. We should not be concerned about this matter. Irish people are and will continue to be great punters. Last year, for example, they punted £700 million in high street betting shops and that figure will probably rise to £1 billion this year. At the same time, on-course betting increased to approximately £133 million. That trend will continue. It would be great to have a percentage of this money index-linked in order that it could be re-invested directly into the industry.

With regard to the time scale and the vagaries of my colleague, namely, that his enthusiasm in respect of this matter might sour, we would like the industry to develop firm proposals in time for this year's Estimates. As Members are aware, the debate on the Estimates will take place after Easter and they will begin to take effect in September. It would be desirable if the industry could arrive at an ami cable solution based on consensus at the earliest opportunity.