I welcome the Minister for Arts, Sport and Tourism, Deputy O'Donoghue, the Secretary General and other officials from the Department to speak on the Horse and Greyhound Racing Fund Regulations 2004. I thank the committee for agreeing to discuss the fund regulations today. I apologise to the Minister for giving him the incorrect impression that we would be available somewhat earlier. The committee has heard an extremely interesting contribution from Mr. John Treacy. I invite the Minister to discuss the regulations.
Horse and Greyhound Racing Fund Regulations 2004.
I move:
That Dáil Éireann and Seanad Éireann approve the following Order in draft:
Horse and Greyhound Racing Fund Regulations 2004.
The Government is committed to the ongoing development of the Irish racehorse and greyhound industries. In 2001, a major period of development in the horse and greyhound racing industries was initiated when the horse and greyhound racing fund was established under the Horse and Greyhound Racing Act of 2001. Over a four-year period, the fund has provided a guaranteed level of funding to Horse Racing Ireland and Bord na gCon, enabling the organisations to make investments which have had undeniable benefits for both sectors. The establishment of the fund has marked a resurgence of interest in both sports to the benefit of the entire economy.
Horse Racing Ireland and Bord na gCon will have received €206.4 million and €51.6 million respectively from the horse and greyhound racing fund by the end of 2004. The money has been well invested not only in bricks and mortar to provide some top-class racing venues and facilities, but also to underpin significant employment in both industries. The prize money it has facilitated has been an important boost for horse and greyhound breeding.
The purpose of the motion before the committee today is to enable the horse and greyhound racing fund to be continued, thereby allowing Horse Racing Ireland and Bord na gCon to make progress with their important development plans which have yielded tangible results but require a further period of investment to reach completion. Under the provisions of the 2001 Act, the horse and greyhound racing fund is guaranteed a level of income based on accrued excise duty on off-course betting, subject to a minimum level which is based on the level for 2000, adjusted for inflation. Any shortfall in the amount generated by the excise duty is made up by direct Exchequer subvention.
Under the existing legislative provision, the aggregate total for the fund is set at €254 million. This limit will be reached before the end of 2004, which means that the fund will lapse if action is not taken. The industries will face severe financial difficulties if their support funds are allowed to lapse. In such circumstances, the industries would be forced immediately into reducing their levels of activity significantly. I am convinced that their long-term viability would be precarious. The development strategies of HRI and Bord na gCon are predicated on the continuation of the fund. Neither body is in a position to generate enough income to replace the fund in the short term. Security of funding over time was a central issue in discussions with the racing bodies before the fund was established in 2001. The 2001 Act sought to address this matter. A failure to ensure the continuation of the fund while the industries have not yet completed their development plans would be a breach of faith.
Since 2001, income from the fund has been used to increase prize money levels and to meet administration and integrity costs. A programme of capital investment has underpinned the growth in both sectors. The growth of the industries has helped to generate and support significant employment and income, particularly in rural Ireland, in a period when direct farm employment has been in decline. It is estimated that the bloodstock sector provides 4,700 direct full-time job equivalents, with a further 11,875 full-time job equivalents arising in the racing and betting industries. The number of people earning an income from horseracing, betting and breeding, full and part-time, including those employed in related industries, has been estimated at 25,000, or approximately 1.5% of the workforce. Horseracing is a significant element of Ireland's tourism product, attracting an estimated 50,000 overseas visitors each year.
There have been major refurbishments at the racecourses at Limerick, Cork, Fairyhouse, Listowel and Galway. Following the purchase of strategic land attached to Leopardstown racecourse, there are plans for major developments of horseracing's flagship tracks at Leopardstown and the Curragh. There are plans to develop Ireland's first all-weather race track.
The recently published Indecon report validates the economic contribution made by the bloodstock and horseracing industry in Ireland. Attendances at the approximately 280 horseracing meetings increased to more than 1.3 million people in 2003, generating more than €23 million in gate receipts. Off-course betting in 2003 totalled €1.9 billion and total on-course betting was €237 million. The gross output of the breeding sector is estimated to be worth €330 million per annum. Bloodstock production accounts for approximately 10% of all livestock production in Ireland and 4.4% of total agricultural output. Ireland is the third largest producer of thoroughbreds in the world and accounts for over 42% of foals born in the EU. Such statistics serve to underline the international importance of the Irish bloodstock and horseracing industries. While it is estimated that the gross cost of tax incentives for the thoroughbred breeding sector is approximately €3 million per annum, conservative estimates put the combined tax contribution of the stallion and brood mare sector to the Irish economy at €37.5 million.
The success of Bord na gCon in repositioning greyhound racing as an attractive night time recreational experience can be attributed to a significant extent to the standard of the facilities available at new or refurbished greyhound stadia in Dundalk, Galway, Lifford, Cork, Newbridge and Waterford. Attendance figures again achieved double-digit growth in 2003, with more than 1.125 million people attending greyhound racing in Ireland, generating on-course betting turnover of €118 million. There has been an increase in attendance of 25% since the turn of the millennium. Such growth is expected to continue with future plans to build a new stadium at Limerick and to complete stadia refurbishment works at Clonmel, Enniscorthy, Kilkenny and Thurles. The industry provides employment of 600 direct full-time jobs and 10,000 indirect and part-time jobs. An estimated 10,000 bed nights in hotels and guesthouses are generated directly by greyhound racing activity.
The undeniably successful track record of horse and greyhound racing deserve a continued period of support to enable it reach its full potential. The fund has reached its limit under the existing provisions. A provision in the Horse and Greyhound Racing Act 2001, however, allows an increase in the aggregate total of the fund. This may be done by ministerial regulation, with the consent of the Minister for Finance, along with a resolution approving such draft regulations passed by both Houses of the Oireachtas. The draft regulations before the committee, which have the consent and support of the Minister for Finance, provide for and increase the aggregate limit of the fund from €254 million to €550 million. This would allow for the continuation of the fund for a further four-year period until 2008. During the next three years, a shortfall in the excise-generated funds will require a decreasing subvention until the end of 2007, at which point predicted rises in the volume of off-course betting will see the fund revert to being fully financed from betting.
I ask the committee to join me in continuing to support the horse and greyhound racing sectors by continuing this system of funding, which gives them a secure financial framework for the next four years to enable them bring to completion their major development initiatives. Supporting the industries is vital in terms of their impact on the 35,000 people employed directly and indirectly by them and the significant levels of tourism generated. Perhaps as important are the dozens of high quality amenities throughout Ireland, providing a huge level of enjoyment for ordinary people who have spent a day at the races or a night at the dogs, possibly on the same day. I urge the committee to support this resolution.
Having been to the Galway Races and then to the greyhound stadium in Galway on a number of occasions, I was just thinking that that was the only phrase left out of the last sentence of the Minister's script. Before I invite the main spokespersons to discuss this matter, I congratulate the greyhound industry on its investment in Lifford, which was in my constituency before the boundaries were reviewed. That did not stop it being a great stadium and a major employer. It is the place for people to go for a night's fun. I look forward to the day the Minister announces the launch of a new stadium for Donegal and the north west. It must happen. If this regulation fulfils that dream, I will declare my interest in enjoying horse and dog racing.
I will look after that for the Chairman. I welcome the Minister to the committee. Looking back at the Official Report of the Dáil, I remembered asking what would happen when the fund reached its limit after 2004. The Minister has answered that. Fine Gael supports the initiative proposed today and offers the Minister its complete backing.
By 2008, no subvention will be required from the taxpayer as the greyhound and horseracing industry fund will be financed fully by off-course betting. It is important to appreciate that point. As we all know, off-course betting has become fashionable throughout the length and breadth of Ireland. While attendances are up at racecourses and greyhound tracks, more people are betting off course as well. As a result, approximately 3,500 people are employed in the provision of off-course betting. Without the greyhound and horseracing industries, those jobs would not exist and there would not be an opportunity for further employment creation. As has been mentioned by those who question the spending of money on greyhound and horseracing, it is commonplace internationally to redirect the tax breaks which support those industries. Certainly, other countries are looking at Ireland's greyhound industry in particular with envy because of the spectacular developments which have taken place. The horse and greyhound racing fund provides both industries with the financial support they need to compete effectively internationally, which they are doing.
From 1994 to 1997, I was a Minister of State at the Department of Agriculture, Food and Forestry with responsibility for the greyhound industry. Without being too boastful, I would like to think that many things began to happen in that period. One of the most important developments at that time was the appointment of Paschal Taggart as chairman of Bord na gCon. He has done a tremendous job, bringing his business acumen and energy to the role. While there are those who criticise the way he does things, Paschal Taggart has been a very positive influence on the industry. According to last year's Bord na gCon report, €13 million from the fund is directed at greyhounds. Of that, €6 million supplements prize money, which is critical. If one does not have prize money, the people running dogs cannot survive. I see Deputy Wright is in attendance. He and I are members of a syndicate of 17 or 18 Members who support Leinster Lawn.
There is no woman.
Women are invited to come in. The Chairman can have my place. It is expensive as a trainer or owner unless one is involved in a syndicate. Without prize money, there would not be greyhound racing. It is a way of supplementing trainers, owners and tracks. That €6 million is used wisely. If it were not for that prize money, which in a way comes from the tax generated by off-course betting, the greyhound industry would not be thriving to the same extent.
Approximately €5 million is invested in capital projects. I remember attending Shelbourne Park in 1994 with Kerry Group, the sponsor of that year's derby. The company's representatives were trying to entertain their guests but there were no facilities available. Even the toilets were antiquated, which influenced the company to pull out of its sponsorship of the event. When one attends Shelbourne Park today, one finds one of the finest stadia in the country. It has great hospitality facilities and is thriving. It would be impossible to book a box for corporate entertainment before next April. The park is attracting interest from corporate sectors across the city, generating a great many jobs, hosting much activity and providing quality entertainment. It has been quite successful.
There was a proposal in the early 1990s from the greyhound board to close Harold's Cross, with which I did not agree. I asked that a stay be put on the decision or that it be dropped completely, which it was. I am delighted to see that Harold's Cross has become a thriving stadium and a community centre for the population of that part of the city. People congregate there and hold local parties. Harold's Cross has become more than a greyhound stadium. It has proven to be very successful. Similar developments are taking place at Dundalk, Lifford, Mullingar, Galway, hopefully at Thurles, and at Tralee.
I remember one of my first duties as Minister of State was a meeting with Bord na gCon, which was attended by Deputy Collins's brother Seán. Everybody at the meeting was against the development in Tralee, but I explained it would be an integral part of the tourism infrastructure of Kerry and create more comfortable facilities for patrons. While there was not a great deal of money available at the time, with Mr. Collins's support it was decided to advance the proposal. Money was saved in various sections in the Department of Agriculture, Food and Forestry to provide funds for a £2 million investment which has become part of the greyhound and tourism infrastructure of Kerry. Busloads of people come to the track from all over the county. If one visits the stadium during the summer, one finds people of all nationalities enjoying the greyhound racing. The return which must be considerable has fully justified the £2 million investment.
Rather than focus on the investment, we should also consider what the Exchequer is collecting in VAT, income tax and duties. Perhaps the Minister's official has figures. The sum must be enormous. Support for farm enterprise is supposed to be worth approximately €270 million to farmers and rural areas. Greyhound racing must be of major importance in terms of ancillary services in breeding, rearing, racing, veterinary support and supplies. Support for the industry generates up to 2,000 jobs indirectly. If the Minister has statistics available, I would appreciate if he could confirm my remarks.
The sale of greyhounds is another important aspect of the industry. I know families in Kerry who educated their children through the sale of dogs. A good greyhound every year would keep someone at college. That was the reality and has always been a major part of supplementary farm income in County Kerry and elsewhere. Greyhounds provided a lifeline at times to farm families and this needs to be recognised.
The English market is weak whereas the market here is strong, principally owing to the increased popularity of syndicates. It is healthy for the industry when prominent figures in RTE, for example, get involved in syndicates, and we should encourage this development.
Lifford and other tracks were mentioned. If the Assembly and devolution get back on track, we should consider establishing a single body for the greyhound industry. We already have an all-Ireland tourism body, Tourism Ireland. Will the Minister address this issue? The Irish Coursing Club, a different body from Bord na gCon, regulates for the whole country. What obstacles prevent Bord na gCon from acting as an all-Ireland body?
The Minister noted that the horseracing industry employs 13,000 people. The stallion and breeding industry employs approximately 4,700 people and has an annual turnover of €240 million, a substantial amount. In addition, racecourses employ 1,600 people and many others as trainers and jockeys. We are even encouraging people from Pakistan and other countries to help out in stables, which is a positive development as it affords people opportunities. A large number of citizens of the Ukraine and Kosovo work in the horse industry. The number of people employed in on-course and off-course betting also needs to be considered.
The Minister referred to Listowel. I live near the town and every year the races are worth at least €25 million to the local economy. A local hotelier in Ballybunion recently told me it would pay him to close his hotel and open it only for the Listowel races because he generates most of his revenue during that period.
The greyhound and horseracing industries are important and people are enthusiastic about them. We live in a horseracing country but in large tracts of it people are also heavily involved in the greyhound industry.
Before the Minister's arrival, we discussed Ireland's performance in the Olympic Games, including the issue of doping controls, which is important in the greyhound industry. Will he comment on this issue? It is critically important that those who place bets have confidence that the dog on which they are betting is legitimate. What level of testing takes place in greyhound racing?
Will the Minister also comment on animal welfare? What happens to dogs after they stop racing? This is important because many people are genuinely concerned about it. It is also one of the reasons the industry has failed to take off in South Africa.
I welcome the Minister's presentation. It is important we invest the resources necessary to develop the important horseracing and greyhound racing industries, both of which have great potential.
I welcome the Minister's presentation. I am from a county with three horseracing tracks and a greyhound racing track, most of which have benefited from the fund. Punchestown, for example, is making considerable progress as the centre for steeplechasing and the national festival it hosts every April is beginning to match the Cheltenham festival. Naas has also benefited from major infrastructural developments. The greyhound track in Newbridge has changed since the days when one would need to wear three overcoats in it on a windy day. One can now enjoy oneself at the track, which is attended by large crowds on Friday and Saturday nights. This was unthinkable three or four years ago.
As a regular visitor to the track, I listened to Deputy Deenihan's comments on funding children's education through the sale of greyhounds. My children would not have progressed beyond primary school if they had been financially dependent on my dogs.
The focus of the discussion is on the development of both industries. The festivals in the horseracing calendar make a major contribution to the regions. The Punchestown festival, for example, has a significant impact on County Kildare, from Athy to Leixlip, in terms of employment creation and its benefits for the bed and breakfast and hotel sectors. The same is true of the Listowel, Tralee, Killarney, Tramore and many other racecourses with similar festivals.
We must continue to fund the industry to ensure we attract foreign competitors. It is excellent when competitors from the United Kingdom visit for race meetings and it is good to observe the interaction at such events. The prize money is the main ingredient in this regard. This has been evident in recent years in the Curragh, which has benefited from a major influx of horses from the UK to take part in races for two year old and three year old horses. Attractive fixtures will increase attendances and inevitably increase revenue for the Exchequer. As a result, the dependency on the Exchequer of the horseracing and greyhound racing industries will decrease, provided we continue to attract large attendances.
The greyhound industry has taken off in recent years due to developments at various tracks, including Shelbourne Park, Harold's Cross and Galway. As a regular visitor to the track in Galway, I have seen the major changes taking place at the facility. They will be of major significance for the west. Proposals have been made to develop Clonmel, Enniscorthy, Kilkenny and Thurles, all of which need investment. They will benefit from developing the corporate aspect of greyhound racing, without which tracks are not financially viable. An illustration of the attraction of the Newbridge track is that one must book a table in the restaurant four weeks in advance. On a visit to the track last Friday night, advertising for Christmas parties pointed out to informed people that they would need to book quickly if they were interested.
The overall package is of major significance to County Kildare where some of the largest stud farms are located. We have seen a major influx of money into all areas in Kildare. Time and again there are objections from the bloodstock industry regarding dumps and the like because it maintains they interfere with good horse breeding practices. I do not know the technical aspects of this matter but a strong view is held that certain things are not good for the industry and that this is contrary to what Kildare is about. These views are always aired through the proper channels. People believe there is something vitally important about the soil infrastructure in Kildare that generates such a major influx of funding from all over the world for the development of stud farms as a result of which we have increased employment.
The day is gone in Kildare when a farm could support 18 families, as was the case where I was brought up. There is now only one man running what it previously took 18 families to do. The emphasis has shifted to the horseracing industry to overcome the problems created because of the loss of employment in agriculture where major changes have taken place due to automation and improvements in machinery. The horseracing and greyhound industries have taken over from agriculture's importance in the generation of employment, not just in County Kildare but elsewhere in the country where there are racecourses and greyhound tracks.
We must continue to improve as many race tracks as we can and we must also develop the greyhound industry. I would love to see an all-Ireland greyhound competition. We mainly run our dogs in Newbridge, as we are attracted to it. I cannot see why we could not compete against Kilkenny, Clonmel or wherever else in a once-off competition. I would welcome an initiative from Bord na gCon for competitions between tracks. It would be a simple thing to organise and it would create more interest, which is what it is all about at the end of the day.
I fully support the Minister's proposal. It is of great significance both on a national scale and to my area for the development of the horseracing and greyhound industries, which are important from a number of aspects, including tourism. Race meetings give a great deal of entertainment to local people and those from further afield.
I join my colleagues in welcoming the delegation. In particular, I welcome the Minister and his colleagues after the events of last week. There was widespread delight among those in the arts, sport and tourism sectors that the Minister remained in his portfolio, in which I am sure all committee members share.
I wholeheartedly endorse the motion before us. I wish to refer to one particular aspect of the Minister's contribution, namely the reference to the plans to develop Ireland's first all-weather race track. Unlike Deputy Wall, my colleague Deputy Wright and I come from a constituency which has neither a horseracing nor dog racing track. We have to travel to them. Shelbourne Park used to be the dog track of choice, even in my end of the constituency, but recently with the improvements in the motorway and Dundalk greyhound track, Dundalk has become very much the track of choice from my area because it is easier to get to than Shelbourne Park even though the distance to it is probably treble that to Shelbourne Park.
I recently had the pleasure of being at the major meet in Dundalk on 12 July with an English owner whom we collected at the airport and brought to the track. He saw his dog beaten but had an absolutely marvellous night. He is a major greyhound owner and he extolled the virtues of Irish greyhound racing which he could not praise too highly.
The one downside of the night from my point of view was the fact that this brand new greyhound track with beautiful state-of-the-art spectator facilities has an obsolete horseracing track in the same venue. I am aware of the applications currently before the horseracing authority in regard to the allocation of the all-weather track and I would urge the Minister to use whatever influence he has to make the case for Dundalk, particularly in the context of the comments made by both Deputy Deenihan and Deputy Wall about the cross-Border aspect of greyhound racing and horseracing. Dundalk is ideally placed to maximise the potential of both sports on a cross-Border basis in much the same way as Lifford.
I wholeheartedly endorse the motion and congratulate everybody concerned in the major boost in both sports in recent years.
I too, welcome the Minister, Deputy O'Donoghue, Mr. Haugh and the other officials and thank them for the wonderful work they have done in recent years. It is great to see people of the calibre of the Minister, Deputy O'Donoghue, and the former Minister for Agriculture and Food, Deputy Walsh, who have a very personal interest in sport, which is most important in this area.
Many nice things have been said today, with most of which I would agree. I have a keen interest in both horseracing and greyhound racing. It has come to my notice in recent years that we do not appear to be attracting young people to these sports. I have discussed it with many people involved in the industry. However, that is not the case in Harolds Cross or Shelbourne Park where many people go for a night out, which proves that if attractive facilities such as bars and so forth are available, they will attract young people. Tracks that have not made these kind of improvements do not have any chance of survival.
The Minister referred to future plans to build a new stadium in Limerick. That has long been promised. In the local newspaper blame for the lack of progress in building the stadium is attributed to Oireachtas representatives. Does the Minister have any influence over Bord na gCon regarding the building of the new stadium? Although the Minister referred to the building of a new stadium, only two weeks ago we read in the local newspaper that €500,000 is to be invested in the existing track. Is it the case that this money will be invested and after a couple of years a new track will be built? Will the Minister examine this issue as a matter of urgency and bring more pressure to bear on Bord na gCon?
I understand Bord na gCon had a meeting with the Minister last year and the finger was again pointed at a lack of delivery from public representatives. We are not in a position to deliver and it is only right we should say this. It is wrong for Bord na gCon officials to say to the powers that be that we have the wherewithal to exert pressure, when we do not. Perhaps the Minister would address this issue in his response.
I agree with Deputy Wall's suggestion regarding an all-Ireland greyhound competition. It would be the best chance Deputy Wall and I would have of winning an all-Ireland. There is no doubt Ireland is the home of the greyhound industry. In this context I pay tribute to the former Minister for Agriculture and Food, Deputy Walsh, who was closely involved with the industry, as is the Minister, Deputy O'Donoghue. When the former Minister for Agriculture and Food introduced the Horse and Greyhound Racing Bill in 2001, he stated the stud book was the linchpin of the greyhound industry and that he would see that it received its fair share of funding. Has that happened?
I welcome the Minister, Deputy O'Donoghue, and his officials. I can say without contradiction that he is the best Minister for sport in the history of the State. He is a man of action and few words. He has shown great leadership and is committed, dedicated and hard-working. His enthusiasm for sport is second to none and he is a great friend of sport in Ireland. He delivers and gives to sport and does not just talk about what he will do. He has proved himself. His record since he received his portfolio speaks for itself.
Longford greyhound racing track is the best in Ireland. I pay tribute to the late Ned Reilly, a former chairperson of Bord na gCon, and 101 year old John Edward Dooris, who kept the track going in leaner times. A new committee has been established, whose members include Pat Fallon, Davy Sheerin, Jacky Devine and Ned Dervin, and it is doing a great job. They are all friends of mine and that is why I mention them.
It is very satisfying as an Irishman to note on international television that Ireland is recognised worldwide as the best place in the world to train a horse. In Longford, horseracing connections include Councillor Carmel Fay from Granard Town Council. She is a member of the Berry family, a household name in racing.
It is famous now.
The best racetrack in Ireland is in Kilbeggan in County Westmeath, which is my new constituency. The second best racetrack in the country is in Roscommon, which is my old constituency. I fully support the Minister's proposals.
It is a bit like Kilbeggan in that it has a tough uphill finish.
It is just as well the Minister was left in his Ministry. We could have lost the greatest Minister ever.
Deputy Deenihan must admit that he is sitting opposite the greatest Kerryman who ever lived.
I feel very privileged to be in the same room as him. I get excited when I meet him.
We are delighted Deputy Deenihan recognises the Minister's greatness.
I, too, welcome the Minister. Let me make some comments without going to the same effort to prove my love of the Minister. My colleague, Deputy Kelly, is absolutely correct in that the Minister, in every interview he does, demonstrates his absolute love of the horseracing and greyhound racing industries and many other sports which we will not mention today.
One of the main issues discussed at the many committees that meet here is value for money for the taxpayer. I am delighted that the Minister in his short speech highlighted the value for money which the fund in question has provided in the greyhound racing and horseracing industries. My Opposition colleagues made clear their feelings on the investments that have been made by HRI and Bord na gCon. They have been for the betterment of the two industries, have represented value for money and have resulted in industries that are the envy of the world, as some of my colleagues have mentioned.
My love of horseracing has afforded me the opportunity to hear people from all the destinations to which I travel throughout the year talk about what has happened in the Irish industries. Deputy Kelly is correct in that the interviews on Irish greyhound derby night revealed that people from South Africa, Australia, the USA and the UK have been inquiring into the blueprint for this success story. Chairmen and secretaries of various groups throughout the world have noted the revolution that has happened in our industry and that is why the decision made by our colleagues in Government to increase funding from €254 million to €550 million is so important. When one travels the world to the racing facilities that have been mentioned, one will note that they are also improving, and therefore one cannot stand still.
I have had the good fortune to be involved with many colleagues involved in horses and dogs. The one thing trainers in both the horse or dog industries say is that they can now earn a living without betting. Many of the senior trainers state that they do not bother betting any more because the prize fund is so good for themselves, the stable lads, jockeys, etc. That this development is Government-led is important. The greyhound industry in the UK is absolutely bookmaker-led and there is no support from Government, and therefore all one hears about is the William Hill night, the Sunderland night, the Coral night and of prizes of £1,000. Yet, on every night that we go to our local racing tracks, there are fantastic prize funds. That is why the best horse trainers are staying in Ireland. In the old days, as some colleagues mentioned, trainers had to sell horses to keep the Irish industry going. Of course sales take place all the time, but it is fantastic that the prize fund in place allows owners to keep the very best of horses in training in Ireland, particularly national hunt horses.
It is very annoying when one reads badly researched, ill-informed comments in the media by those with no interest whatsoever in the industry. They take cheap shots at the tax incentives and so forth. I am glad it has been outlined today that the gross tax incentive amounts to approximately €3 million and the tax intake is ten times greater, amounting to €36 million or €37 million. It is important that this message is circulated. When one reads the international racing newspapers, one realises that in the United States, California is now drawing some of the best stallions away from Kentucky because of the tax incentives it provides. We read that the Canadians and Australians are considering tax incentives.
It is magnificent to travel the world, whether it is to the Breeders' Cup, the Melbourne Cup, or the Prix de l’Arc de Triomphe in Paris, and hear everybody talking about the Irish industry. The best stallions and broodmares in the world are in Ireland. That the whole industry would be thrown up in the air for the sake of a cheap shot by ideologues at certain individuals who are making some profit would be a very retrograde step.
I am delighted that the increase in the fund will allow other developments to take place. It is significant that the Aga Khan, because of his love and respect for the Irish horseracing industry and because of the initiative taken by the Government, has recently offered funding towards the development of the Curragh racecourse to elevate it to the standard we require at the headquarters of the industry. It is a primary track in great need of major refurbishment.
We will get another chance to speak on this subject in the Dáil. I very much welcome today's presentation by the Minister and the fact that it has been so well supported by everybody present, obviously because the increased funding represents taxpayers' money extremely well spent in the interest of the two industries.
I too welcome the Minister and his officials and support the proposals before us. In the early 1990s I was responsible for the greyhound industry and, as Deputy Collins said, it was a time when patrons were falling off. Sons were not following their fathers to support greyhound racing. I belong to the older fraternity who went to the races in a cloth cap and a heavy coat on a winter's night and were happy with that. We shared an interest in breeding greyhounds but it was obvious that we needed to procure new patrons or the sport would not last much longer. I am delighted with the sum spent to upgrade the tracks and provide the sort of spectator facilities the more demanding punters of today require. There are catering facilities at several tracks and the industry is going strong.
Horseracing is an area in which we are world leaders. Per head of population we produce the greatest number of top class flat jockeys in the world. I am delighted to see continuing investment in the greyhound and horseracing industries, particularly in the context of worthwhile employment generation. A survey carried out when I was in charge of Bord na gCon showing that 10,000 people made some part of their income from greyhound racing. It is important when employment in agriculture is on the decline that we maintain and develop worthwhile projects to generate income for our rural dwellers.
I thank the committee for an interesting and informed debate. I particularly thank them for their kind remarks on my retention of the arts, sport and tourism portfolio, especially those of Deputy Kelly who is easily the hardest working Deputy in the Dáil.
From Longford.
He must be looking for lotto funding this year. There must be a couple of big projects in Longford.
Doping control procedures for dog racing were raised recently at the Committee on Public Accounts and Bord na gCon confirmed that it had a programme of testing in place and intends to improve it. Members will appreciate that.
How much is being spent on the programme?
I do not have the exact figures but I can get them for the Deputy.
It was approximately €2 million but perhaps the Minister can confirm that.
Retired greyhounds need care and Bord na gCon contributed €1.6 million towards the retired greyhound trust in 2002. We do not have a breakdown of the income tax and VAT generated by the industry but we will endeavour to furnish this information to Deputy Deenihan. The proposal for an all-island greyhound body is worth pursuing and I would be prepared to pursue it when the Northern Ireland Assembly has been restored. I would be more than willing to discuss it with my counterpart there.
I have been pushing for an all-weather track for some time because it is necessary. Various venues have been mentioned, not least Dundalk, where one might be able to integrate greyhound and horseracing by locating them in one area. Horseracing Ireland is considering options for the location of such a track. In its strategic plan 2003-07, it states that it intends to introduce an all-weather track during the lifetime of the plan. I saw the plan for Dundalk and was very impressed by it.
Funding from the horse and greyhound racing fund is provided to Bord na gCon for coursing and it decides how to disperse the funding. Discussions are ongoing between the Irish Coursing Club and Bord na gCon about integrity costs. It was neither today nor yesterday that I first attended the greyhound stadium in Limerick. I visited it 25 years ago and unfortunately it was in a pretty poor state then and still is. That is a pity because Limerick is one of the great homes of greyhound racing and I am anxious that we build a new stadium there. Some estimates put the cost in the region of €11 million. Local Deputies are anxious about it too and it is right that its development should be one of Bord na gCon's priorities. I assure everyone that it is a priority for me too.
Some people think that horseracing is a rich man's game and that a greyhound is a poor man's horse but the truth could not be more different. Tens of thousands of people are passionate about horseracing and tens of thousands more are equally passionate about greyhound racing; there are thousands of others who depend for their living on the two sports. I thank the members of the committee and spokespersons for the Opposition for approaching this matter in such a positive manner. I am extremely pleased that all the parties present support this proposal. That the spokespersons for Fine Gael and the Labour Party confirm their parties' support is a source of great encouragement to me and to both industries as well.