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Joint Committee on Agriculture, Food and the Marine debate -
Wednesday, 16 Oct 2024

Horse and Greyhound Racing Fund Regulations 2024: Motion

The purpose of the second section of today's meeting is the examination of the Horse and Greyhound Racing Fund Regulations 2024. The committee will hear from the following witnesses: the Minister for Agriculture, Food and the Marine, Deputy Charlie McConalogue; Mr. Kevin Galligan, principal officer; Ms Annamarie McNally, assistant principal; and Ms Nicola Beagan, assistant principal, State bodies division. The Minister's opening statement has been circulated to members of the committee. He will have five minutes to provide the committee with a synopsis of his statement. We will then proceed to questions and answers.

I thank the Cathaoirleach and members for accommodating this resolution and discussion today. The horse and greyhound sectors are embedded in the social and economic fabric of our country, particularly in rural Ireland. Successive Governments have acknowledged the significance of both industries by supporting them through legislation, policy initiatives and the provision of funding. This support has helped maintained Ireland's world-class reputation for excellence in horse racing, greyhound racing and breeding. In this regard, an important aspect of Government policy is the investment in the horse and greyhound racing industries to ensure they achieve their maximum potential. The horse and greyhound racing fund plays a key role in providing this investment. It has been instrumental in shaping these industries and the many livelihoods which depend on them.

Both sectors make a valuable contribution to a balanced regional economy. The most recent analysis conducted by Deloitte estimated that the thoroughbred industry has an annual economic impact of €2.6 billion, with direct and indirect employment of 30,000 people. A report by Mr. Jim Power estimated that greyhound racing supports more than 4,000 full-time and part-time jobs, with a further 6,000 people deriving economic benefit from the industry.

The horse and greyhound industries receive financial support from the State through the Horse and Greyhound Racing Fund under section 12 of the Horse and Greyhound Racing Act 2021. Payments are made from the fund to Horse Racing Ireland, HRI, and to Rásaíocht Con Éireann for the greyhound sector. Exchequer support provided to the fund is crucial to the survival and continued development of the horse and greyhound racing industries. Since 2001, a total of €1.7 billion has been paid from the fund to the horse and greyhound racing industries in accordance with provisions of the Act. The cumulative upper limit on payments from the fund provided for under the relevant regulations has been reached, however. In order to give effect to the provisions of budget 2025, this cumulative upper limit must now be increased by regulation. The Estimates from my Department, passed by both Houses as part of budget 2025, include an allocation of €99.1 million for the Horse and Greyhound Racing Fund. This will be distributed in accordance with the Act, with 80%, equating €79.3 million, going to HRI and 20%, equating €19.8 million, going to Rásaíocht Con Éireann.

To allow my Department to provide the allocated money in budget 2025, it is necessary to comply with the technical requirements under section 12(13) of the Horse and Greyhound Racing Act 2021 to increase the cumulative limit on the amount payable from the fund by €99.1 million to bring it up to €1.8 billion in total. This is achieved by way of the regulations submitted to the committee today. The aggregate limit on the fund has been increased in this manner in 2004 and in 2009 to 2023, inclusive.

I will focus a bit on each industry, starting with the horse racing industry. It is, obviously, massively significant to our rural economy and creates a highly favourable international profile of our country, including in the tourism sector, for example. According to the 2023 Deloitte report on the social and economic impact of Irish thoroughbred racing and breeding, which I referenced earlier, it is estimated that the thoroughbred industry has an annual economic impact of €2.46 billion, representing a 34% increase from 2016. The sector supports both direct and indirect jobs of 30,000 people. The sector has an incredible reputation as a location for breeding and racing, which is evidenced by Ireland's position as the second-largest producer in blood stock in the world by value of sales after the USA. Ireland also has the world's third-largest number of thoroughbred foals each year after the USA and Australia. The thoroughbred sector is a firm part of our identity and Government funding has been a key driver in retaining this status over many years.

Naturally, underlying all the facts and figures are the countless individuals who have directly and indirectly shaped the current state of the Irish racing and breeding industry. In 2023, Irish-trained horses racing in Britain won close to £17 million, well ahead of the 2022 figure. Likewise, Irish-trained horses won more than €10 million in prize money throughout the rest of the world. The figures relating to the bloodstock and breeding sector also show significant increases, which is a huge sign of confidence in the industry. Bloodstock sales at public auction in Ireland rose by 7.5% and the worldwide value of Irish foal horses sold through auction rose by 13.8%, with the combined figure reaching in excess of €565 million.

As proven in 2023, Irish owners, trainers, jockeys and horses continue to set and uphold a high standard. Their exceptional achievements and enduring influence underscore Ireland's international reputation. While other noteworthy racing nations have significant advantages, including scale, demography and economy, the Irish equine breeding and racing industry is extremely competitive globally. This is clearly an example of the sector punching above its weight. We are able to continuously compete and outperform our competitors because of the extraordinary passion and dedication to excellence shown by all those involved in the industry, including yard workers, jockeys and owners.

The welfare of both people and animals is a priority, as evidenced in HRI’s current strategic plan and my Department will continue to support both HRI and the Irish Horse Racing Regulatory Board, IHRB, in this regard. An independent review of the IHRB’s anti-doping programme carried out by an international equine anti-doping expert, Dr. Craig Suann, concluded that the programme "at least matches international best practice in most respects." It also found that the IHRB has made “significant advances in recent years”. That said, we must leave no stone unturned in continuing to improve equine welfare.

I will now turn to the greyhound racing sector. Through the evaluation of the greyhound racing industry in the 2021 Power Report, it was highlighted that the greyhound industry provides and supports considerable employment across the Irish economy. It is estimated that in 2019, the industry both directly and indirectly, supported over 4,000 full-time and part-time jobs in the economy. Moreover, there are in excess of 6,000 active greyhound owners who perceive this lifestyle as a fundamental aspect of their lives.

The greyhound racing industry is an integral part of the social fabric of our country. The finance provided to the greyhound racing industry supports economic activity nationwide and helps maintain a long-standing tradition. It is widely acknowledged that funding for this sector is especially important for rural Ireland.

The future of the industry is dependent on a strong governance platform and on the industry having the highest standards of integrity and welfare, founded on a robust regulatory system. There is a strong commitment to improved animal welfare in this sector in the programme for Government and this Government’s support is contingent on a guarantee of welfare standards being upheld by Rásaíocht Con Éireann on an annual basis. This is reflected in the annual parameters set out by my officials and in their regular interactions with RCÉ. RCÉ continues to operate an ever-expanding greyhound care fund utilising income from the Horse and Greyhound Fund towards the implementation of the highest possible welfare standards at kennels and racing facilities throughout the country.

Provisions in the Greyhound Racing Act 2019, which came into effect on 28 May 2019, will support RCÉ to strengthen greyhound welfare. This legislation strengthens the legal basis for the industry with a view to fortifying the integrity of the greyhound racing sector and improving provision for greyhound traceability.

Through this Act, governance of RCÉ is improved. There are enhancements to industry regulatory oversight, updates to sanctions and enhanced integrity standards. It facilitates the board in focusing on its priority objective of achieving the highest standards of care and welfare of greyhounds. Further commencement orders for the small number of remaining sections will continue to be phased in as expediently as possible and, as implementation continues, enable RCÉ to ensure the important heritage associated with greyhound racing in Ireland can continue under the appropriate rules and regulations.

The Act provides the industry with real tools which can effect fundamental change and reform and a continued focus on welfare standards in the industry remain a top priority for my Department.

A key element of the new legislation is the provision for the first time for a full IT traceability system for racing greyhounds. The Rásaíocht Con Éireann traceability system, RCÉTS, came into operation on 11 January 2021. The system provides a mechanism to ensure that racing greyhounds are properly registered and traceable throughout their lives up to the point of rehoming and retirement. These life stages include birth, registration, racing career, all changes of ownership and location, and end of life. Data from the system at the end of August 2024 indicates that 50,148 greyhounds were subject to traceability.

Ongoing work is being carried on the system. RCÉTS phase 2 is currently in development and this will include additional functionality to facilitate the recording of injuries at RCÉ licensed stadiums during racing, official and unofficial trials, the capture of details relating to euthanasia of a greyhound by a veterinary surgeon, the capture of medical records and health checks carried out by veterinary surgeons, the recording of sampling history and adverse analytical findings and report details of offences under the Greyhound Racing Act 2019. The continued expansion of the system has coincided with the development and further improvement of a range of other welfare and care programmes that reflect RCÉ’s commitment to ensuring greyhound welfare across the State receives the highest level of protection.

In addition to its care and welfare programme, RCÉ is involved in areas which include regulatory, integrity and laboratory functions. This includes activity on welfare inspections and investigations, testing regimes, veterinary services, and financial support for the Irish Retired Greyhound Trust and contributions to private rehoming agencies. RCÉ is fully committed to the development, management and promotion of a successful, commercial greyhound racing industry that is built on a consumer-focused and high quality entertainment product which meets the highest possible international regulatory and welfare standards which will continue to be governed by my Department.

These two industries are fundamental to the achievement of more balanced regional economic growth and provide widespread benefits for many rural locations. A key priority for Government focuses on the social and economic needs of rural communities and in this context, these industries continue to contribute to rural economic activity and employment and should be recognised for their work in these areas.

The welfare of horses and greyhounds is a cornerstone of both industries and I am assured that HRI and RCÉ are striving to ensure the highest standards for the sports and their participants, on and away from the racetrack. This includes the provision of financial and other supports to many organisations to ensure the health and welfare of horses and greyhounds. The Horse and Greyhound Racing Fund has played a key role in providing this investment and it has been instrumental in the shaping of these industries and the many livelihoods they support. A rapidly changing international environment continues to pose challenges to the Irish economy making it important we continue to support these important industries.

We wish to seek the support of the committee for the increase in the overall cap and the Budget 2025 allocation.

I thank the Minister. I have a question before I go to Deputy Kenny. Just €100 million is given to both industries. Is there any prescription by the Department on its distribution and how the money would be spent? Is it prescriptive so that a certain amount must go to capital investment and so much into prize money or is it left to the respective boards?

There is an allocation for capital and an allocation for current as part of the budgetary allocation. We set up both HRI and RCÉ to steward the industries and to engage with key stakeholders. On the guidance within that, while there would be engagement with my Department, we try and empower both agencies to spend the funding in as effective and impactful a way as possible.

Putting on my Tipperary hat, the second proposed all-weather track in Tipperary town, in the junction, has been advocated for a significant time. Does the Minister think that project would be able to proceed this time with this allocation?

I think we have had a good engagement with HRI. A business case has been submitted on which we have provided positive feedback. The next step would be the business case following on from tender, that is the final business case. I am confident from the engagement we have had with HRI on the allocation that can be there from the capital allowance from the Horse and Greyhound Fund and also other sources of income which would be important they can provide for as well and there would be the capacity there to proceed with it, pending the final case being approved. It is a track I have visited along with the Cathaoirleach and I know he has been a great advocate for it. The track would be a great asset to Tipperary town and to County Tipperary too. Its status is engagement on the final business case post tender.

I thank the Minister. It would really help the smaller trainers as they would be able to operate on a 12-months basis. It would be a great addition to the industry. Dundalk has worked exceptionally well. I call Deputy Kenny.

I thank the Minister for his opening statement and his contribution. A lot of money is being put to these two industries every year. This follows on from the Cathaoirleach’s question to an extent. When large sums like that are being allocated people would expect there would be significant scrutiny on how that money would be spent, where it was going and how much was going on prize money, capital and investment in the key infrastructure required for the industry to grow and develop. It is important to point out in the context of all of that that our Irish horse industry is a world phenomenon. It is a key industry in the country. Ireland is renowned throughout the world for the production of racehorses and, indeed, the greyhound sector is also a thriving industry. There have been, as there are in all sectors where animals are being used -we saw it recently on the Prime Time programme on the treatment of calves being exported - animal welfare issues that have to be borne in mind and we have to be sure they are properly adhered to in the way the animals are treated.

It has been my experience that the vast majority of people who raise animals for whatever reason, whether to send them to market, race them or whatever, treat them really well because they want to do really well out of them. They have a vested interest in doing that. I have experience of a very tiny minority who would mistreat animals or act in a slipshod fashion. There is a tiny minority that needs to be held to account for that, or if it comes to doping in regard to racing, etc. There needs to be strict adherence to all the regulations that are put in place. There have been, over the years, various incidents and examples where, unfortunately, there has been poor adherence to regulation. When we are putting such a large amount of money into these industries, we need to be absolutely sure that the public is getting value for that money and that the correct checks and balances are in place.

In the context of all of that, last year the Minister mentioned that there was going to be a review into all of this and that an outside consultancy agency would be appointed in order to do that review. It had not, at that stage, made any progress. I would like to get an update on where that review is at and what is happening with it. The public deserves real oversight of this industry. There is certainly a perception among many that with regard to the money, particularly if it ends up as prize money, some of the very wealthy individuals who own racehorses are getting this prize money and the public is funding it. There needs to be at least an assurance that this is actually not happening, and that this money is going where it should go, to develop the industry and ensure it is properly run.

It is vital that we have that kind of oversight, that there is a report done and that it is done without fear or favour. It has to be independent, and truly independent in respect of that. I would like to know where that is at and what developments there are in respect of that. Second, what assurance can we have that this money will be spent and how is there going to be proper oversight of it? If we are spending money on any sector and in any section of any Department, we expect to know that there is good governance in place. There need to be guarantees around that. I would enjoy the Minister's comments in respect of that.

I thank Deputy Kenny. It is a strong allocation but it is really important for both industries. I think both industries deliver significantly in return. They are really important parts of the economy when you look at both of them in totality. Certainly, when you look at our horse racing sector in particular, it is up there at the very top of the world table across different metrics. It is a really important part of our economy in many parts of the country.

We plan to review the overall funding. The consultancy report we are awaiting from Mazars with regard to the IHRB aspect of the funding also includes governance aspects. Depending on the receipt of that, which could inform the wider review, we will then initiate the wider review. It is felt that it is important to receive that report first so it can inform the subsequent review of the funding allocation.

People will have different views on the funding to HRI or Rásaíocht Con Éireann. Taking HRI for example, when you look at our thoroughbred sector and compare it internationally to other countries that are competing with us, you will see that they have similar funds in place and, in most cases, are receiving much more significant government support. Government support underpinning the sector is particularly important with regard to supporting it and making sure it can compete. It is funding that is well spent because of that, and it is really important that we continue with it. We are committed to doing that review but it has not commenced yet. It will commence following on from the receipt of the Mazars report.

Does the Minister have any indication of when he would expect the Mazars report?

We expect it very shortly.

Will it be this year?

We expect it before the end of this year.

Will the other review commence quickly after that?

Very quickly after that, yes.

Has there been any tendering to appoint anyone?

There is a panel in place we can procure from. The panel is already in place, so that structure is there. It will be a matter of procuring the report from the panel that is in place. It should be in a position to commence pretty quickly.

With regard to the issue of how this money is being allocated at the moment to different sectors within the horse racing industry, how much oversight does the Department have of that? How much return and data does it get back regarding how this money is spent, what sectors it is going into, and who is getting the money? What process is there for applications to receive funding from different individuals or groupings in the sector?

We get an annual report, which has a significant breakdown of detail regarding how the funding is spent and the returns for that. Then we have the strength and health of the sector. The horse racing sector has been performing really strongly in terms of jobs and economic output. Likewise, we have seen an uptick in the strength of the greyhound sector and greyhound racing too, which has been positive to see. We get annual reports and there would be ongoing engagement. With regard to the structures of both organisations, their remits are to support and develop their sectors, and they have significant input from stakeholders. There are various committees and board members too who inform how best to allocate the funding and get the strongest impact. They will report on that on an ongoing basis as well as through their annual reports.

Is there an independent auditing process around all of that?

There is, yes. They would meet and have to comply with all auditing requirements, and with the Comptroller and Auditor General as well.

Most of what I was going to say has been asked. It is one of the few industries that really resonates with rural Ireland. I come from the small town of Enniscorthy, where I think we have our greyhound track since 1937. It creates a lot of employment. It is very important. When people look at the greyhound industry, they do not see the veterinary sector that is tied into it. You have people who supply food for the dogs, people who build the kennels and people who actually train and walk the dogs, and so on. For a small rural area, that is why it is so important.

I reiterate what has been said about governance probably being the most important factor. I do not know whether the Department can set out a certain amount of money for welfare itself. If it is giving a certain amount of money, perhaps it could specify that a certain amount of it has to be spent on the welfare of the animals.

Sometimes we have a difficulty with the 80:20 split. Since the foundation of the funding, that is kind of the way it has been done. The greyhounds could have a bad year or the horses could have a bad year - because of a disease or anything - and they would need to get more money or to have it divided up differently. Maybe the review will come out with something on that.

The governance is probably the most important thing that we have to make sure is done right. I thank the Minister.

I thank Deputy Mythen. With regard to Rásaíocht Con Éireann, for example, a minimum of 10% of all funding must go towards welfare services. With regard to HRI, 20% has to be applied for integrity services. On HRI, I think it was Deputy Kenny who was asking about the capital breakdown.

The Minister said 10% and so forth. How long is that there? Have the percentages ever been increased?

It has been there since 2020 and I believe it is spending more than the 10% on it as well. That is the minimum requirement; it must be spending at least 10% of the funding on welfare.

Is there a possibility it could be increased? The Minister is increasing the funding itself.

At my last meeting with it, it informed me it was exceeding that 10% level. Obviously, as the fund increases the percentage requirement will still apply, so the figure spent on it will increase too. It is a key requirement. In terms of the plans it has in place, we will be seeing an increase. It is being stepped out further compared to where it is at present.

With regard to the capital allocation the Cathaoirleach asked about, HRI has a €76 million allocation this year, with €14 million for capital and €62 million for current spending.

There has to be recognition of the large efforts to rehome dogs by the greyhound industry especially. It has improved dramatically in recent years. When driving around the city now we often see a lot of greyhounds being walked as pets. They have to try to find homes for some of these greyhounds overseas also and this brings its own expense. My understanding is that Australia has started to target getting the dogs into the United States. Getting homes for greyhounds is proving difficult. It requires a good bit of investment. The board must be commended on the sea change there has been with regard to rehoming dogs and the afterlife of dogs when their racing career is over.

Recently the committee heard a presentation from the Irish Harness Racing Association. I notice the gambling Bill is being discussed as we speak. At that meeting the Irish Harness Racing Association strongly felt it should be able to get a tote licence as result of the Gambling Regulation Bill. It operated a couple of meetings in conjunction with the French pari-mutuel and the figures it gave were very impressive. Where does the Minister see harness racing? Does he see a track being established? Does he see a tote licence being issued as a result of the Gambling Regulation Bill?

I will come back to the Cathaoirleach further on this. It is not something I have discussed with the sector. I will get the committee a note on it. I allocated funding to harness racing last year in the budget. It was the first time an allocation was made to it. It is a sector we would like to see supported and developed. On the particular point relating to a tote, the Irish Harness Racing Association requested the assistance of the Department to operate a tote from the Department of Justice. Responsibility for issuing of tote licensing rests with the Minister for Finance under the Totalisator Act 1929. As far as departmental officials are aware, the Irish Harness Racing Association has been corresponding directly with the Department of Finance on this.

It is my understanding, and perhaps I am wrong, that the new Bill will be able to facilitate it getting a tote licence. If it is to be economically viable it is essential that it has a tote licence. When there was betting through the French pari-mutuel, the amounts that were bet were extremely impressive. Harness racing is the most popular horse sport in France, but it is a minority sport here. If a tote was operating here and there was pari-mutuel betting, it would give great seed capital and a very sound foundation to try to develop a racetrack or two for harness racing.

I call Deputy Fitzmaurice, who has got in by a short head.

Or a nose. I thank the Minister and the officials for coming before the committee. Politicians get a lot of emails and I have a question for the Minister because I cannot fathom it. In all the various horse sectors, everyone seems to be falling out with everyone else and everyone is bringing each other to court. What is wrong in an industry that gets so much money? Are the procedures wrong or what is wrong? Is there something the Department can do to get a bit of harmony or get the problems resolved? The committee seems to be going from one bang to another bang about it, to be quite frank. For an industry that is very important to rural areas especially, there is always an "if" about it and people are always wondering about the sparring that is going on. We have it constantly. What is the Minister's assessment of all of this? How do we address whatever problems are there and for once tidy up the act and get everyone to try to work together?

Deputy Fitzmaurice is addressing the challenges in the sport horse sector.

It is in all of the sectors. In Connemara at present it is nearly impossible to get books. We are constantly getting emails about different problems in different parts. The Minister knows my views on the books. In fairness, the Department is able to hammer out 1.5 million or more cattle books without a bit of bother, efficiently and quickly. I understand DNA must be checked but I am speaking in general. There are always problems. Is there anyone who can crack the whip and get it into line? People pulling at each other is not a good thing. If everyone was going in the one direction, there would be more success.

We are discussing the horse and greyhound fund.

That is with regard to the thoroughbred industry.

Deputy Fitzmaurice has asked about the horse sport industry. If the Minister wants to answer he can do so but it is outside the remit of this evening's meeting.

Horse Racing Ireland and Rásaíocht Con Éireann work very well with the funding that is allocated. They administer it very well and effectively. There have been challenges with the sport horse sector, working through Horse Sport Ireland in recent years. It is known the previous board stood down 18 months or more ago. I stepped in to appoint a new board to try to bring the various sectors and stakeholders together again. This work is ongoing. It is important that people come together and work together as best as possible. I encourage all stakeholders to engage with the new board to address any issue, question and challenge they feel they have. We need as much co-ordination and as much working together as possible for the sector to do well.

Horse Sport Ireland received some funding through a tender award in which it was successful. It provides services as a result of this. I would like to see more engagement, co-ordination and people finding a way to work together for the betterment of the sector overall. I know there are issues and some difficulties at present on a few fronts. I encourage everyone to come together and work with the board in particular to try to find a way forward.

With regard to thoroughbreds, there were debacles during the year about new rules being imposed at the racetracks. Has this been resolved?

I am not sure which rules the Deputy is referring to.

It is about access for ambulances. I understand that one or two courses could not hold races because of a new rule brought in. I am not sure whether it involves two ambulances being able to access at all times.

There was some stand-off on that. Was it resolved?

I am not aware, Deputy Fitzmaurice.

All racecourses are racing anyway.

That is all right. How does the Department monitor value for money?

There would be an obligation on the HRI and Rásaíocht Con Éireann to monitor closely with their committees and stakeholders, but also through an annual report which is published. There is ongoing engagement with my Department and thorough auditing, plus oversight by the Comptroller and Auditor General.

Obviously we are all aware of some of the recent television programmes broadcast about the greyhound industry. Is the Department following up to ensure the welfare of dogs?

Very much so. Funding is contingent on continuing progress and development in respect of welfare safeguards. Rásaíocht Con Éireann has done exceptional work. Its new traceability system has over 50,000 greyhounds registered and the greyhounds are monitored throughout their lifespan. There has also been very significant investment in rehoming programmes. It has been good to see that race numbers have started to pick up again in the last while and people are returning to the sport. Everyone in the sector is very aware that the future health of the sector very much depends on having good welfare throughout. Certainly that is something the Department is very clear on, as is Rásaíocht Con Éireann. It is on that basis that we are all going forward.

I thank the Minister and his officials for coming in this evening to discuss the Horse and Greyhound Racing Fund Regulations with us. At the next public meeting of the joint committee, on Wednesday, 23 October at 1.30 p.m., we will discuss TB, the issues associated with TB and the very significant increase in figures this year.

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