Seanad Éireann debate -
Wednesday, 12 Mar 1997

Vol. 150 No. 9

Irish Horse Racing Industry: Statements.

Mr. McAughtry

I come to the House this evening after two successful days at Cheltenham, which should give me some authority on this matter. However, I was successful because I did not go. We cannot blame the Irish Horseracing Authority if we do not back winners at Cheltenham. Overseeing the horse racing industry is not an easy job for the IHA. Racecourses must make profits to survive and keep up with the times and other leisure industries.

Horses must be trained and training must be a viable business. There is not much in it for owners when one looks at the statistics. It is only a fun sport for many but they deserve better prize money. It is intended, however, that they will get an increase in prize money. The Minister for Agriculture, Food and Forestry said that the structure of thoroughbred breeding is unique and that, on the one hand, there is a relatively small number of specialised stud farms with large numbers of mares and stallions while, on the other, there is a substantial number of farmer breeders, most of whom have one or two mares producing foals and these breeders have gone through a difficult period and combine a passionate interest in horse breeding with a more traditional farm enterprise. Breeding is a difficult and complex industry.

The IHA is responsible for the business side of racing and is supposed to come up with bright new ideas. It was established to replace an earlier body when time caught up with the horse racing business. It oversees an industry which provides 10,000 jobs and 25,000 incomes, of which breeding provides 5,000. Representatives of all sectors are on the board with the exception of the racegoer. Curiously, there is no place for the racegoer, although some may claim otherwise. The reason is that the Racing Club of Ireland is the most highly respected organisation from the racegoers point of view. It is articulate, informed and highly respected and was honoured by the presence of President Robinson at its annual dinner last year. It is a pity the Racing Club of Ireland, which has been in existence for many years, is not represented on the board of the IHA.

I visited the IHA headquarters to up date myself on this matter. I was received most courteously and my questions were answered readily. People have been brooding about the IHA, but we cannot please everybody. I spoke to it about its five year plan, which I will outline. The plan emerged after two years and a great deal of impatience on the part of those who were to receive it. It plans to update facilities on racecourses jointly with the racecourses. Some £30 million will be spent under a capital development fund to attract new patrons to increase betting and sponsorship. Some 80 per cent of the fund will be spent on eight key racecourses in Ireland while the remainder will be spent on grade two and grade three racecourses. Looking at quality of racecourses which are not entitled to anything, people may say the rich will get richer and the poor will get poorer.

The authority also plans an intensive marketing campaign. By giving assistance, support and incentives to racecourses, attendances, betting and sponsorship will substantially increase. Here I come to the aspirational part of the five year plan. A great deal of it is aspirational, something the IHA admits. We must accept the IHA's word and support it. Phrases such as "intensive marketing campaign" are tired and well trampled and I wish the IHA luck in this regard.

A merit system will be introduced in which better fixtures will be allocated to racecourses with the best performance under the headings of investment, attendances, sponsorship and betting. This classifies racecourses, and I am sure it will not be well received by grade three racecourses.

The tote will also be radically transformed. I, and I am sure other Members, could talk about nothing else but the tote this evening because it is the main bone of contention. I cannot understand why a totalisator system does not make money; it did not make money last year. The IHA will reduce costs substantially and upgrade technology, which is necessary. In England tote dividends come through in two or three minutes but in Ireland, one must wait ten to 12 minutes to find out how much one is lifting, usually it is not very much because the tote pays out less than the SP on a horse which is first, second or third.

The IHA intends to spread the tote to outside betting shops or what it calls the High Street. There are objections and pitfalls to this move, which I am sure will be highlighted. Paddy Power's general manager, Mr. Stewart Kenny, said that up to January of this year, the IHA had not consulted them, yet it was talking about putting tote outlets in betting shops. An Irish satellite racing channel will be created so that live pictures of Irish racing will be available. It has set a target of £5 million by the year 2001 and we wish it well in that regard.

The breeding sector will be supported by the authority which sets as its objective the maintenance of the current tax exemption on stallion nomination fees, the introduction of incentives to improve the brood mare band and obtaining Government approval for a statutory foal levy scheme. Given its substantial contribution to the economy and the fact Ireland is unique among major racing industries worldwide by not receiving any direct share of the substantial off course betting industry, the authority is seeking increased Government support for the industry and is targeting an increase in the current level of 2 per cent of 1996 off-course betting. This would increase Government aid from £8.5 million to £12.5 million by the end of the plan, I wish it will.

The IHA should not have given way by agreeing to this modified system. Bookmakers once emptied racecourses by going on strike after which the IHA should have stood up to them. Its failure to do so led to the modification. The authority is targeting an increase in the prize fund from £14 million to £25 million by the year 2001. This will be a difficult target to achieve.

After all the agonising over the tote one wonders why suddenly there is talk of applying strict business practices. This should have happened long ago. It is like the Conservative Government getting excited about education now that it is on its last legs.

Last November, after two years' work on the plan, the estimated figure of £20 million High Street turnover was reduced to £7 million. This accounting alteration raised many eyebrows. The IHA says that this year's surplus of £440,000 will rise to £2.5 million by 2001. In January, Stewart Kenny stated that the IHA had not approached him.

Aggressive marketing is an impressive sounding term. There is no reason to believe that the IHA has not got the people to implement it. I was impressed by its efficiency and the manner in which I was received. However, interim reports are essential to assessing progress. This point was made by the Racing Club of Ireland. The only way to prove whether aggressive marketing is working is to issue interim reports, even though this may not be to the liking of those involved.

Mr. O'Toole

Senator McAughtry and I agreed that the unwritten wording of the motion should be that the Irish Government be encouraged to make racegoing as attractive as possible to Irish punters.

I thank the Senator for outlining the bones of what is required as the authority sees it and I look forward to hearing Members' views. I welcome the Minister and remind him that he and I meet every year for a convivial few drinks on the last few days of the Listowel races. That is where I would like to start.

Racing is fun. However, that is becoming a well kept secret. We are building walls around racecourses. The GAA was established at a time when Ireland was fighting for its identity. We were like those on continental beaches who put towels on the sand to mark their space. The first thing many GAA clubs did was build a wall around the pitch so that no one could see without paying in. Many of our racecourses are like that. When one goes to a race track the vast majority of those present are over 45 years of age; young people do not go to race meetings. I live in north Dublin which, in many ways, is the home of horse racing. People live and breed horses in the area and the young people enjoy horse racing. I will tell the House why people do not go racing in the same numbers as years ago.

I used to go racing as a young man. When I married racing was still attractive to me as a pastime. Now if a couple go racing they must pay an entry fee of up to £10 each. That was the price at Leopardstown at Christmas. This is scandalous. This means they must pay £20 before they get in the gate. That is a lot of money. Most other industries would be delighted to get people in the gate and then collect revenue by selling burgers or encouraging them to bet or go on the tote, etc.

It is extremely expensive to go racing. I was racing at Navan on Sunday. There were two adults and two children. The entry fee was £20, and this is a lot of money for many people. I handed over £20 of dry money yet I did not get a receipt. Once we were inside we had difficulty getting a race card. In addition, our children complained that a can of Coke cost 85p in comparison to 50p or 60p everywhere else. As far as the children were concerned this was their pocket money and why should they have to pay an additional 35p for a can having paid in at the gate?

At every race meeting I go to people criticise the late and low pay out by the tote. Only occasionally does it match ring prices. Whenever it is better than ring prices it is a matter of great interest. The tote should always pay more than the ring.

There is very little comfort at most race tracks. A football game takes two hours. However, a race meeting can take four hours. People need to sit down and have a certain degree of comfort, yet this is not being provided. There is no comparison with the facilities at dog tracks. The lack of facilities dissuades people from going to race meetings. Old people will not go because it is not comfortable, young people will not go because they cannot afford it and those in between are asking whether it is good value.

Irish people like national hunt racing, even though flat racing is more popular internationally. However, Irish people have always felt an attraction to jumps. National hunt racehorses compete for six, seven or more years. People get to know the horses and characters develop. No flat horse in the last five years could have commanded the same interest as Danoli, Imperial Call or Doran's Pride. If one asks Irish people to name horses they will always name steeplechasers. One would have difficulty finding one person in 15 who could name the winner of last year's Irish derby.

We need to look at the commercial aspects of this issue. This is a potentially huge tourist attraction, including for small courses. Courses in places which are not so well known, such as Kilbeggan, Roscommon and Ballinrobe, are extraordinary attractions. Before Kerry became a huge tourism magnet, it always had the attraction of racing. There was Killarney in July for the fashion, Tralee in August for the fun and Listowel in September for the farmers after the harvest. They were three great racing festivals which no one could avoid. If one wanted something to do in early August, one could go to the only decent race meeting, the Dingle race meeting, which was held under no rules except local ones. People are attracted to these meetings and there is huge international interest as well. There is something in them for all Irish people and we should abolish the entry fee, open the gates and get people interested in racing again.

Mr. Belton

I congratulate the Minister on the recent development programme for the racing industry. I welcome the grants made available for racetracks, especially Roscommon, which has enjoyed much success as a result of the efforts of its hard working committee. It has installed many new facilities and the track now has a high reputation and receives support from trainers in every corner of Ireland. The Minister was obliged to assist the local effort. Kilbeggan is another track in the area which has undergone considerable development. The crowds at the evening meetings in Roscommon and Kilbeggan are huge and the meetings are going from strength to strength.

It is only some years ago that small tracks were supposed to be going out of business, which was the thinking then. That was wrong because small tracks have survived and developed and now add huge character to the racing industry. They give the opportunity for small trainers to run their horses with a chance of success. The policy of giving grants to these tracks has paid off and I compliment the Minister for that.

It has been mentioned that racing has tourism potential. I recently met people from England who came over on racing holidays. There are races almost on a daily basis during the summer and this is an opportunity for tourists to see the country and travel from one meeting to another. This is provided they back winners because it is not easy to travel around while backing losers. It is important for punters to win as well as the bookies, who seem to win anyway.

While facilities are important, the breeding industry represents an ongoing commitment and challenge to the Department of Agriculture, Food and Forestry, which must facilitate and assist breeders. It is a rapidly changing business. Some point to point meetings have 12, 13 or 14 races which must be divided into three divisions with 15 runners in each one. This indicates the number of horses in the country and the level of breeding. The export to England of National Hunt horses is a huge industry. The reputation of Irish horses, at National Hunt level or on the flat, is known around the world and must be continually developed. Other countries have recently developed their horse industries so Ireland must keep pace with what is happening internationally.

There is no better way to enjoy an evening than to attend a race meeting or a point to point. The latter have become extremely popular and it is a section of the business the Minister might examine in future with a view to assisting those involved in it. It is an important part of the horse industry. The people involved put in a lot of work because organising and running a point to point is a big undertaking. The work is generally voluntary and those involved deserve support and recognition. People often come from abroad to watch point to points and, perhaps, to strike a deal at the end of the evening. The owner of one of the winners today at Cheltenham was at Fairyhouse last year and bought the horse at the races there. He said he was not sure what he was doing at the time, but the horse with which he ended up going home won for him today in Cheltenham. The Minister should keep up the good work and I ask him to examine the point to point area.

Finally, I send my best wishes to the President, Mrs. Robinson, and her husband on her announcement today that she will not run for a second term. I congratulate her for the work she has done for this country.

Mr. Lanigan

I congratulate the two Kilkenny people who won the two races today in Cheltenham, Aidan O'Brien and Paddy Mullins. No mention is made in the Irish Horseracing Authority's annual report of Gowran Park. According to the authority's plan, no funding is to be made available for that race track although it is in the heart of the best national hunt country in the world, which has produced Red Rum and 90 per cent of good national hunt horses. It has been equally good at producing horses for flat racing and their trainers.

The £30 million provided by the Government will be spent on the Curragh, Fairyhouse, Galway, Leopardstown, Limerick, Listowel, Punchestown and Mallow. A significant part of the funding will be spent on Mallow because of Denis Brosnan's huge investment. I ran horses there when I had money, which was before I was elected to the Seanad. We won because our competitors could not deal with the water on the track. I hope Denis Brosnan has dealt with that problem, but there are rumours that that is not the case.

When I was first elected to the Seanad in 1977 I had bought a quarter share, or a leg, in a horse. We wondered what to call it. My three partners were McNamara, Cullen and Ryan so "Mclacurry" was suggested as was "The Senator Mclacurry" because I had been elected to the Seanad. The Senator went on to become a very good horse and was trained by John Joe Walsh near Senator Sherlock's home. It qualified for the English National by winning a point-to-point; if a horse wins a point-to-point it does not have to win its bumper.

I have been at race meetings since 1948 and seen big punters come and go. The big punters do not last. The people who go to race meetings for enjoyment are those who continue to go. Therefore, the racing industry must look at providing entertainment for those who do not go to break the bookmakers. I have never seen a bookmaker leave a race meeting on a bicycle, but they enter in good cars. A lot of punters leave on bicycles and, if they go in on bicycles, they leave without them. Anyone who thinks they will break the bookmakers is a fool. If the horseracing industry is to develop as an industry for the people, they should not try to satisfy the bookmakers or the tote but satisfy the people out for a great day's entertainment. I disagree with anyone who feels it is not good value for £10 or £20.

If the entertainment is to be provided, the punters must be able to see the horses. In many cases, when the horses enter the parade ring, children have no hope of seeing them unless it is a very minor meeting. Usually the horses cannot be seen until they are on the track. The facilities for children to view horses are abominable. If one goes to a race meeting in America there is a good chance the children can see the horses, which is what racing should be about. People should be able to assess the horses and develop their interest in them.

I agree that 90 per cent of those who go to horse racing are pretenders. They are pretending they are gambling hugely; they pretend they do not lose money; and they pretend to their wives when they go home that they only took £20 to the meeting and only lost £20, as I often did. The wife usually finds out the truth the following day. Anyone who pretends otherwise is a fool.

Senator McAughtry said there is no representative of the punter or the public among the authority members. There are some very good friends of mine on the board but they all represent interests within the industry. There is nobody there from outside the industry to tell them where they are going wrong. A huge amount of money has been spent on the Curragh; and when one sees grade 1 horses running and perhaps two or three horses in a race at money on, this means there is no enjoyment for the punter. A win increases the value of the sire of the winner when that horse goes to stud and that is what the race is for; it is not for the enjoyment of the punter.

Too few people control the stallions and the mares in the flat racing industry. Only a small number of people can get involved. There is an occasional aberration where someone buys a cheap horse which gets through, but that does not happen very often. The National Hunt is different, as one may be able to go to the sales. A friend of mine bought a horse at the sales for fun. He paid 120 guineas and sold me a leg for 120 guineas afterwards. The horse was called "Madness" because we thought it was madness to invest when we learnt he had paid 120 guineas for the horse and we bought legs for 120 guineas each. We sold that horse to the British Bloodstock Agency later and did well from the deal, but we were very lucky.

This authority does not represent those who want to go racing as it represents the industry. The industry only produces money for those in that industry; it is not there to produce entertainment for spectators. The small farmers have been great providers of animals which get on in the racing world but it is increasingly difficult for them to stay involved. The industry will have to examine itself and provide the facilities mentioned by Senators McAughtry and O'Toole. The general public must be able to enjoy themselves there and we must get away from the concept of eight tracks that must be supported. If we do not support the small tracks they will close of their own accord. Tramore would disappear and there will soon be 1,000 houses there. What will happen to Thurles, Sligo, Tipperary and Listowel? Without Limerick Junction this industry would be enormously deprived. Mallow needs to be developed, but another course needs to be developed in County Cork; it is the biggest county in Ireland and there is only one racetrack there. Denis Brosnan is putting huge amounts of money into Mallow and I assure Senator Sherlock that I hope it pays off, though I have my doubts. Listowel, Tralee, Limerick and Tipperary will not allow the Mallow track to develop to the extent that the money going into it suggests.

Without Tramore, where would the National Hunt be? It was said that once the horses went into the dip in Tramore, the jockeys decided who would come out first. There was a lot of sense in that because at least those jockeys could have a race for themselves that owners, trainers and bookmakers knew nothing about.

I thank Senator McAughtry for raising this matter. A recent headline stated: "A Brave New World for Horseracing". I have my doubts, because that brave new world will not be produced by putting £30 million into selected tracks and not giving racing back to the people. There were about 9,000 people at a point-to-point in Carlow last Sunday week and if one goes to Cork or Kerry one will see an average attendance of 5,000.

Mr. Sherlock

I am glad I am speaking on this matter when I hear the criticism of Mallow, one of the finest tracks in the country. Soon it will be the only track in Ireland with a seven furlong straight. Negotiations on this are almost complete, so Senator Lanigan can stick that in his pipe and smoke it.

Horse racing is both business and recreation, and its future must be addressed in this context. The establishment of the Irish Horseracing Authority has, for the first time, given the horse racing industry both direction and focus and has provided a framework within which development can be managed.

I especially welcome the confidence which the Irish Horseracing Authority has demonstrated by deciding to invest £5.6 million in the development of Mallow Racecourse, with private funding scheduled to bring the total investment to £8 million. Expenditure to date amounts to nearly £7 million, of which the IHA has spent £5 million, including £1.8 million on site purchase. That purchase was of a racecourse that was successfully operated privately until recently, when facilities for patrons were not what they should have been. That investment is not only a vote of confidence in Mallow but in the whole east Cork region. I remind Senators that efforts were made by groups of people in County Cork to build a racecourse, which failed. I was justified in my prediction that Mallow would come out on top.

I am confident that the continued development of Mallow Racecourse will result in long-term sustainable job creation. The racecourse, which I hope will finally be opened in the summer, was due to open on 30 March but a technical decision was made that the turf was not fit to race on. I have no doubt the racecourse will provide a spin-off for restaurants, hotels, bed and breakfasts and coach operators.

Anyone can look up the record of Mallow Racecourse to see whether any meetings were ever abandoned because of flooding. Recently, when races were abandoned, they could have taken place in Mallow. The facilities for patrons are second to none. It is a tremendous development. If anyone wishes to invest £1,000, they will receive a ten year ticket for the up-to-date stand.

Horse racing has always been one of the country's main indigenous industries. In the past it developed in an ad hoc manner, without any reference to its broader economic context. The establishment of the horseracing authority will facilitate integrated development, maximising job potential in the industry, and ensure linkages between all the relevant services.

Mr. Brosnan is a capable man. The fact that he is head of the Irish Horseracing Authority can only be good. He saw the tremendous potential of Mallow Racecourse and that is how the IHA decided to invest in it.

Acting Chairman (Mr. Belton)

We are all off to Mallow.

Mr. R. Kiely

I congratulate Senator McAughtry for moving this motion on the important racing and bloodstock industry. Senator Lanigan congratulated Kilkenny men. I congratulate the Limerick man, J.P. McManus, who was successful in Cheltenham this morning and I wish him future success.

There are many well-known racehorse owners and trainers in County Limerick. Last year, Limerick held only eight race meetings. That is a very small number for a county that is supportive of horseracing, through ownership, training and riding. I do not live far from Mallow and I am delighted their racecourse has been upgraded. However, Limerick should not be forgotten either. An important aspect of the racing plan is a heavy programme of investment under the newly established capital development fund, which will enable facilities and amenities at racecourses to be significantly upgraded. The capital development fund, launched by the Minister for Agriculture, Food and Forestry, Deputy Yates, at Adare on 30 May, 1996, was the cornerstone of the developments which occurred in 1996. One of the first racecourses to benefit from this fund is the new Cork racecourse in Mallow. Significant progress was made on Mallow Racecourse in 1996 and racing is scheduled to commence there in 1997. Perhaps the Minister can send me an official invitation for the opening. I have been at Mallow Racecourse several times and would like to be there for it.

Minister of State at the Department of Agriculture, Food and Forestry (Mr. Deenihan)

It is already noted.

Mr. R. Kiely

I thank the Minister. I would also like him to note that while Mallow received funding last year, I would not like him to forget Limerick. There are plans to build a new racecourse in Greenmount. The authority has grant-aided over £1.8 million towards the development of racecourse amenities in 1996. Projects which qualified for grant assistance included work undertaken at the Curragh, Fairyhouse, Galway, Kilbeggan, Killarney, Listowel, Leopardstown, Roscommon, Tipperary, Wexford and Mallow. Limerick was not included, but I am sure that in future plans the Minister will look favourably and give it as much help as possible. As a county so involved in all aspects of the horseracing industry, Limerick needs to be recognised. The board of directors at Limerick racehorse track plan to build an outstanding course in Greenmount. I ask the Minister and his Department to give it the grant aid it deserves.

Many farmers have a mare or two to supplement their incomes. These often produce good racehorses. A neighbour of mine who died recently bred Devon Loch, who was winning the Grand National when the Queen Mother's horse collapsed. People like these are the backbone of the racing industry. At times they may breed a Derby or Gold Cup winner. These winners often make their debut at point-to-points. We have many of these in Limerick and they are important. I would also like to see these progressing and receiving the support they deserve.

Mr. McDonagh

It is appropriate we are discussing racing today on the second day of the great Cheltenham festival. I thank Senator McAughtry for initiating the debate at this opportune time. His interest in and his enthusiasm for the racing game is infectious. He has made an enormous contribution in furthering the development of racing in this country. His article every Saturday in The Irish Field is a must for racegoers.

Racing, more than any other sport in the world, has universal appeal. No matter where one goes, what type of person one meets or what county one arrives in, there will always be someone who is prepared to talk about racing. Racing is big business. We are all familiar with the glory days of the Derby, the Grand National and the Aintree festival. Much money has been invested in the bigger Irish race tracks. Equalisation is crucially important if racing is to survive.

In my county of Galway we are lucky to have the thriving Galway Racecourse at Ballybrit, which we are proud of. It keeps the tote and racing authority going for many months of the year. The Galway Races are huge business and they bring in thousands of people, not alone from around the country but from around the world. It is a huge festival and a huge boost to the economy of Galway city and county. Long may it continue.

The Minister of State, Deputy Deenihan, will agree Listowel is a thriving racing festival. Patrons can sample the great atmosphere as they cross the river and hear the youngsters calling "Throw me down something". One immediately gets the feeling that one can relax and enjoy oneself. I compliment the executive in Listowel for the marvellous work it has done on that racecourse. It is an ideal autumn holiday and an exceptional race meeting. A former Member of the Oireachtas, Gerry Lynch, is a member of the executive.

If further money is to be invested in the larger race tracks, including Galway, it should be concentrated on areas outside the enclosures. They are the areas where, as children, we started to follow racing. The field, as it is called, is the location for the carnival. In many racecourses this aspect of the industry has been neglected. Many families go to race meetings for a day's outing but the facilities available for them at racecourses are becoming fewer and worse. The facilities on the perimeters of the large racecourses should be examined and improved.

We also should not lose sight of the fact that there are many small racecourses on the western seaboard. Ballinrobe is a typical example of the wonderful interest in racing that exists in local areas. That track was struggling to survive a few years ago; but as a result of the efforts of the energetic local committee, the supporters club and the wonderful leadership of the manager, Jimmy Tierney, it withstood the test and is now in the process of further development. Racecourses such as those in Ballinrobe, Roscommon and Sligo must be maintained and funding must be provided to that end. Such racecourses must struggle to survive in the shadow of the great Galway festival meeting.

The bookmakers and the tote have a large role to play in the future of the Irish horse racing industry. I appeal to the tote to examine its dividend system. Most Irish people who attend race meetings like to invest £1 or £5 on the tote but the dividend is usually extremely meagre. It is in the interest of the tote to conduct an in depth study of its practices and to streamline its modus operandi. Unless the dividends become more generous people will stop betting on the tote and that would be a retrograde development.

Bookmakers have contributed a great deal to the development of racing, particularly in the sponsorship area. However, huge amounts of money are wagered in the ring and invariably the bookmakers do well. I appeal to them to invest more in the racing industry.

There is an imbalance between the flat racing and national hunt sectors. Huge money is invested in flat racing. There are glamorous meetings in the Curragh and at other racecourses. Large scale owners and breeders are involved in this sector and there appears to be no financial limits to its success. If money is to be invested in the industry, it should favour the National Hunt sector, which is the poor relation in the industry.

It is incumbent on the Government to assist the development of the horse racing industry. Many people have meaningful and worthwhile employment in the industry. It is also a great tourist attraction which brings thousands of people to the country each year for the large festivals. It promotes the name of Ireland throughout the world. The Arkle statue, for example, has pride of place in the Cheltenham arena and few people have not heard of Vincent O'Brien and Dermot Weld. Today, the small operators are begining to achieve fame and people are familiar with the names of Tom Foley and Fergie Sutherland.

Horse racing also provides a meaningful pastime for unemployed people and those who have retired. For a small amount of money people can spend a pleasant afternoon investing in all types of combination bets in bookmakers' shops throughout the country. It also prevents people who have nothing to do from becoming involved in crime and other nefarious activities by giving them a meaningful endeavour.

If horse racing is to survive, the Government should not forget the ordinary working person who cannot afford the corporate box or the special enclosure. Entry fees to race meetings should be kept at a reasonable level and the small operator should be helped in every way possible. I hope that before the debate concludes the Minister of State or Senator McAughtry will give us one or two winners for tomorrow at Cheltenham.

Mr. Dardis

It has been said on many occasions that fast women and slow horses put one on the road to ruin. I do not know much about fast women but I know a great deal about slow horses because I was born and reared and still live within a few miles of the Curragh racecourse. I am familiar with the industry and the difficulties faced by small scale trainers and owners to stay in business at a time when expenses are significant. Even when high training fees are paid for an animal in training, trainers do not make much money from them when all the costs are totalled. Frequently it is only by trading the horses or by gambling on their performances that trainers can make money.

The most significant event in the bloodstock business since the foundation of the State was the 1969 Finance Act which introduced the tax exemption on stallion income. It provided that gains or profits to the owner of a stallion arising from the sale of services of mares by the stallion or to the part-owner of a stallion for the sale of such services or rights to such services would not be taken into account for any purpose of the Income Tax Acts. That concession was extended to companies under section 11 of the Corporation Tax Act, 1976. In 1985 it was decided that the animals to which it applied should be ordinarily kept on land in the State, a sensible restriction.

The effect of those legislative changes was to virtually double the size of the industry since 1969. There are now 28,000 thoroughbreds in the country and a gross output of £50 million per year in the breeding industry and £257 million in live exports. It is a hugely important industry and we must keep bearing that in mind. It is the most important industry in County Kildare, both in terms of numbers employed and in terms of output. Frequently the industry is comprised of many small units, so while national racecourses such as the Curragh, Punchestown and Naas enjoy a high profile, the industry itself sometimes does not.

One of the most significant aspects of the industry that must be addressed is the prize money. There is a disproportionate skew in favour of flagship races, the classics. Obviously the prize money for those events must be significant to attract top class international competition, which is most important. Our thoroughbreds must take on top class animals from around the world and beat them. That is what keeps the industry to the fore. Smaller owners are suffering significantly, however, in terms of the prize money available at smaller tracks. I will come to the issue of whether we have too many race tracks for our population later.

I am one of those unfortunate people who bought an animal and put it into training for national hunt racing. It was reasonably successful and while it did not win a race it was placed a few times, which brought great enjoyment. Everyone tells you about the great crack in national hunt racing, which is true, but it is expensive crack. When the horse is in training and the clock is running on a week by week basis it is not very long before you find yourself asking how you are going to fund this animal and whether you can stay in the business. That is the problem confronting most small owners — the people who want to get into the business.

Syndication has been a help and there have been some very successful syndicates of small investors. That is one way to go but it is not the same as owning your own animal, or sharing ownership with a friend, and seeing the horse pass the post at Punchestown or even at Mallow in the rain.

While I understand the financial constraints that racecourse owners are working under and how difficult it is to keep some of the courses going and to maintain facilities, as an owner I get upset and irritated at Thurles and some other tracks when I cannot park my car, cannot get a race card and find there is confusion about badges. That is not good enough. The Minister of State knows that if he turns up to play a GAA match basic facilities are provided and he will be accorded some status by the sporting organisation to which he belongs. However, my experience as a small horse owner has been unsatisfactory because courses do not provide the necessary back-up, even though it would only cost a small amount of money to do so. As a horse owner going to the race track you should be able to park your car in a favourable position, get into the track easily and receive a race card.

There are two types of racing activity. One is the big festival, which has been referred to, like Galway, Listowel and Punchestown. Punchestown has been a hugely successful meeting due to the efforts of a few farsighted people who went to Cheltenham and persuaded people there to come to the meetings. They built up an atmosphere. Punchestown has always been a central part of life in Kildare and everything closes down for it. Long may it remain so. The organisers have transformed it into a major flagship meeting for national hunt racing and sponsorship has helped to improve the prize money.

The Curragh and Leopardstown are also flagships and for the industry to compete internationally those meetings are hugely important. It would be wrong to suggest that money should not be invested in those venues but channelled instead into smaller venues. Of course, the smaller venues need support but if the industry is to survive at the forefront, the flagship meets are the ones on which that success will stand.

It is important to note that horse racing is now an entertainment business. It is part of what we are and we love it. It is a great part of national life but it is also an entertainment business. The courses that have taken that aspect on board are the successful ones. There is much more to it than putting animals out to race. There has to be an attraction for families. We are living in an era where racecourses have to compete with immediate live entertainment on television, which is freely available to everybody. That has been a huge problem for the industry and it is only now that places like the Curragh and Leopardstown are successfully coming to grips with it.

When the Horse Racing Authority Bill was being debated, one of the questions I raised was about sponsorship of colours. I asked why it would not be possible for every jockey coming down the straight at the Curragh to have sponsorship on their silks. I notice that is almost becoming standard now.

We will need a national course that is floodlit for night racing, and that will probably be Leopardstown. There is also the question of having an all-weather track. In England such tracks have been of huge benefit.

Small tracks are important but I wonder how sustainable they are. Naas racecourse's facilities, for example, were not acceptable in this modern entertainment business. It is only by selling land for building development that the course will be able to develop and attract people in competition to other sports.

There must be a greater meeting of minds between the Turf Club and the Horse Racing Authority so that everybody will pull in the one direction. I hope the National Stud continues to operate profitably. It was great to see Indian Ridge arriving at the stud as a premier stallion. It is a long time since the National Stud has had a stallion of that quality. It is a flagship for the industry and it is important for the stud to be able to buy that type of animal. It was able to acquire Indian Ridge thanks to the generosity of the animal's owner and the fact that the Oireachtas gave the stud the requisite amount of money to buy animals of that calibre.

The question of a tax on betting going back into the industry was mentioned and, in my view, the money raised should go back into the industry. It should not be just another form of diverted income tax. The other point is whether there should be betting facilities at Leopardstown. We all know the disputes that have taken place with the bookmakers. Coming back to the point about the entertainment nature of the industry, however, some of those matters will have to be carefully examined and taken on board.

I was in Cheltenham last year, a Chathaoirligh, as I think you were. When Imperial Call won the Gold Cup I immediately went to the saddling enclosure. You have to get there fairly quickly to avoid being trodden on by 10,000 people who all want to be there at the same time. On my way to the enclosure I heard two Cork men in deep conversation. One told the other not to go home and say he had not bet on Imperial Call. Even though neither had backed the animal, both agreed they could not return to Cork without claiming to have backed the Gold Cup winner. I hope we will have another such winner with which to raise the roof tomorrow.

Dr. Henry

I am glad horse racing is being addressed as an industry because it is most important. Senator Dardis gave us the figures for how many people are employed and the amount of money involved. He pointed out that in his county horse racing is of great importance. If a major factory closes down we hear an enormous amount of fuss about it and everyone is called in to give support. However, one often sees difficulties within racing and breeding, yet not much support is given. Concern has been expressed by Senators from country areas about point to point meetings. While they have been the training ground of so many national hunt horses over the years, point to point meetings seem to attract smaller and smaller turn outs and have increasing difficulty finding sponsorship. I hope they will not be forgotten when we look at the major areas.

Will the Minister try to get courses to look at their facilities? Some of them are still quite primitive. Lavatory arrangements, particularly for women, are often inadequate and bar facilities can be just a wooden hut with little food provided. Despite the fact that an enormous amount of money has been spent on Leopardstown, some really terrible food was on offer when I was there. I wonder what sort of tendering process they have and whether there is good competition? Plenty of catering firms tender to bring food to Dublin Castle and the College of Physicians so why can they not bring such food to Leopardstown? It could be done just as easily. I hope there is not a closed shop determining who gets to tender. If the standard of food was improved it would be a great encouragement. The last time I was at Leopardstown the choice seemed to be between chips, which had been fried in very old oil, and really terrible sandwiches, which are not great to have with your gin and tonic. I can see that the Cathaoirleach shared the problem I had there. It is all very well spending money on the infrastructure, but proper catering——

Mr. Deenihan

Like in Shelbourne Park.

Dr. Henry

Exactly.

Mr. Deenihan

Has the Senator been there?

Dr. Henry

Yes, I have. It is down the road from where I live. Years ago I remember going to races in Albany and Louisville — this is to let the Senators know that I get around — and they provided a tremendous day out. I do not know if Senators have been to either course, but they are incredible. Both are flat courses but they are great places to go to. Louisville erupts during race week. They have a mammoth fireworks display to herald what they call "Derby Week".

The advertising of our race meetings is unimaginative at times. A card is given showing what is coming up and that is all. The first time I went to Louisville was about 20 or 25 years ago and I thought I would never go back — there was no effort put into the occasion. I have been there a few times over the past five years and it has been an incredible outing. The fireworks display has almost taken over race week. It is held over the river and they try to make it bigger each year and they are succeeding.

While infrastructure is important we need to look at facilities, at housekeeping. There should be no more chips fried in old oil or soggy cheese sandwiches with the corners turned up. There is plenty of competition for entertainment. This is an important industry and we must get people to support it. There is not much good in having ten people and ten runners. We need people to attend the meetings and to support the betting industry.

I ask the Minister to aim for a standard in facilities. Just because people say they have a champagne bar does not mean everybody is going to go there. If it is warm champagne with sandwiches with turned up edges, why call it champagne? It becomes a down at heel outing. There needs to be much better housekeeping. The facilities at racecourses should be carefully monitored. If they are not found to be up to standard those in charge should be told that competition must take place in the running of them. Otherwise people will say "That is not going to be a great day out". I will go again to Louisville, Albany or Saratoga if the Minister needs somebody for a fact finding mission. Naturally, it would be in the interest of the country and not just for my own pleasure.

Mr. Kelleher

This debate is timely, but we are missing a few old heads to discuss the horse racing industry because they are in Cheltenham. Maybe for that reason we should have delayed this discussion until next week.

There are a couple of issues facing the horse racing industry. There are problems associated with trainers and owners not having enough finance available to them to pursue their investment. For example, how often do we go to National Hunt meetings? A few hundred people attend and the prize money is paltry. It does not even pay for transporting the horse to the course. We have to examine the prize money in National Hunt racing. Money raised on the tote should be reinvested and sponsorship should be increased. That gives the small trainer and owner an opportunity to make a few pounds if his horse comes good. Very often they are dependent on the gamble at the bookie to pursue the investment.

Facilities at courses was mentioned. There is a perception that horse racing is the sport of kings. However, everybody who goes to horse racing meetings knows that it is a tough day out under difficult weather conditions and the facilities are not up to standard. There is an image that horse racing is very glamorous, largely due to the glamorous presentation of meetings such as Ascot and the Melbourne Cup on television. However, that impression is not factual.

There should be more advertising of horse racing. We are still tapping into the small number of people who are very interested. Not many other people follow racing. Shelbourne Park dog racing has been successful because of advertising. Young people who were previously not remotely interested in dog racing have latched on to meetings because of the improvement in facilities and an aggressive marketing campaign. It is now considered an exciting and enjoyable night. We have fallen down again and again when it comes to advertising the joy of horse racing. The perception among those who have no real interest in it is that you must be a gambler to go racing. If they knew what it was about they might come along and enjoy it.

The Minister should take on board the necessity for an aggressive marketing campaign coupled with the renewal of courses and the upgrading of catering facilities in particular. The average racer is not too concerned about these things — they can hack the rough going. However, family members or people who are not very interested in racing could find the conditions unacceptable. It is a family sport with great potential, but most racecourses do not have the necessary facilities.

Mallow racecourse was mentioned. It is a very welcome development. I remind Senators who may have got carried away and emotional that we were on the other side of the House when that development was initially announced.

Mr. Deenihan

Criticism came from Senator Lanigan.

Mr. Kelleher

I was referring to my colleague from Cork, Senator Sherlock, who seemed to take credit for it. I am glad the Government has continued to support and encourage it. Thankfully, we will have a great racecourse in June and good racing in Mallow.

It is important to realise the potential for job creation and tourism. Good race meetings with high profile horses elevate the standard and structure of Irish horse racing abroad. Everybody says that Irish horses are the greatest in the world for racing thoroughbreds and show jumping, but we are failing when it comes to elevating racing to the status achieved in England, Australia, France and other strong horse racing countries. We have to examine this.

The prize money at racecourses on an average day out is too small to encourage people to put effort into training and keeping a horse for the big win. They could end up with a cheque for £1,400 on winning the race. Everybody with a horse must be given the opportunity to win decent money. We must also start an aggressive marketing campaign to encourage people and to point out the benefits of horse racing. Most people look at horse racing either as the sport of kings or have a seedy image of a bookie office and a fellow losing his day's wages. That image prevails because people are not aware of what horse racing is about. It is an enjoyable sport which should be encouraged.

I am sure the Mallow region will benefit substantially from the racecourse. Mallow and Cork have strong traditions of horse racing, but the lack of courses over the past number of years has been a serious drawback. Now that there is a course the industry can be developed in the south.

I thank all involved in the Mallow racecourse development. They made a huge effort. People from Mallow supported the venture. It should be looked at as a model for other courses when raising investment. Local businesses should be encouraged to invest because there is always a spin-off. For example, the Galway races offer a most enjoyable week when people travel to the city even though they may not attend the races. We should organise good festivals, decent prize money and an aggressive marketing campaign to ensure that those who do not know what is involved in horseracing will be informed and encouraged to support the industry.

Minister of State at the Department of Agriculture, Food and Forestry (Mr. Deenihan)

I am glad of the opportunity to address the House on the future of the horseracing industry and I thank Senator McAughtry for introducing the debate. Since the Government assumed office there have been many significant developments in the industry. These have not happened by accident. They are the result of hard work and commitment by a Government which recognises the importance of the industry. My colleague, the Minister for Agriculture, Food and Forestry, Deputy Yates, has taken a personal interest in this sector. We are providing an annual grant-in-aid to the Irish Horseracing Authority, the IHA, of £8.5 million to assist the authority in the implementation of a strategic plan for the development of the industry into the next century.

We have overseen the launch by the IHA in 1996 of a capital development programme for the sector which will involve a combination of State and private investment to a total of £30 million. We have also provided special share capital funding for the National Stud over the last few years to help bring it back to profitability and allow it to continue providing its excellent service. I am glad to note that it is projecting a significant profit for this year and this must be especially welcomed against the backdrop of the position just two to three years ago when it was sustaining annual losses of approximately £500,000.

For most people who pay at the turnstiles, racing is a leisure activity. However, for some 25,000 people who make a living in the equine sector, it is a serious business. The fact that racing may be a sport does not take away from its economic significance to the country.

While horseracing has a great tradition in Ireland, its continued success is not guaranteed or automatic. In the ever expanding leisure sector it must compete for the discretionary spending of an ever more discerning and increasingly urbanised population. The primary indicators for the Irish economy have been and remain positive. Excellent economic growth, low inflation and increased disposable incomes represent the favourable economic environment in which the equine industry currently operates.

On the basis of the overall economic indicators one could be forgiven for assuming that the racing sector would be in a healthy state, if not booming. Buoyancy should be the order of the day, but this is not so; the industry has problems. For any business to progress it is normally essential that a constant effort is maintained in growing income and controlling costs. While the racing business has increased its income from the Government, it is interesting to look at other sources of finance.

Betting and betting revenues are the life blood of the sport. In the context of increasing non Exchequer sources of finance for the industry, increasing on-course betting revenue is essential as it is the main area of direct benefit to the industry. On-course betting turnover in the six year period up to 1996 for bookmakers and the tote combined has dropped from £122 million in 1990 to approximately £96 million in 1996. The decrease occurred mainly in bookmaker betting while tote turnover remained fairly static.

This situation is poor enough in itself but when it is contrasted with the development of other forms of gambling over the same period it is disappointing. The turnover in off-course bookmaking showed solid growth over the same period, rising from £292 million in 1990 to over £400 million in 1996. The performance of the national lottery is equally impressive. From a standing start of £102 million in 1987 it shot forward to over £300 million last year. We must therefore question why, contrary to this trend, the on-course bookmaker betting declined.

If the punters are not at the races they cannot bet. Ultimately, it is in the interests of all involved that more people go racing and begin betting. There will also have to be some changes to the way in which the bookmaker betting service is provided. The IHA has already commenced with the introduction of on-course SP betting shops at some tracks. Over time some practices have developed in the on-course bookmaker betting scene which are not conducive to facilitating or encouraging new entrants to the business. I appreciate that change is difficult for all concerned; and while I am conscious of the dangers inherent in over simplifying the problems in this area, we must all agree that change is required if the on-course sector is to stand a chance of returning to the turnover levels of the 1980s.

Turning to the tote, its financial contribution to racing could, at best, be described as modest. Currently the tote retains 21 per cent of turnover, with over 18 per cent being used to cover operating costs. From a turnover of £19.5 million in 1996 returns would be £4.2 million with £3.6 million of this covering operating costs. This leaves an estimated £0.6 million for reinvestment and a contribution to racing. The tote will have to increase turnover and seek to reduce operating costs.

Increasing attendances at race meetings must be a major aim of the industry. Attendances declined from a 1989 figure of 1.1 million and bottomed out at just over one million in 1993. Since 1993, the attendance figures have grown slowly to a total of almost 1.1 million for 1996. This represents an 8 per cent increase over the 1995 figure and a 10 per cent increase over the 1993 figure.

However, it is not time for complacency. Recent studies have indicated that 35 per cent of all racegoers attend only one race meeting and do not attend again until the following year. These studies also revealed three interesting facts: first, the core group of regular racegoers are males aged over 50; second, the 15 to 25 year olds were and are much under represented at racecourses; and third, Dublin dwellers were under represented at racecourses.

There is plenty of work to be done to promote the sport in this city and among young people. It is generally accepted that if people go racing when they are young there is a better chance that they will go racing later in life. The market is there waiting to be exploited.

Entry prices to racecourses pitched at levels which aim to maximise gate receipts inevitably tend to limit attendances and possibly reduce revenue from other activities — betting and otherwise — which take place on course. At present the interests of the racecourse owners and the IHA do not readily coincide in this regard. Common ground serving common interest must be found. It is therefore worth looking at a more aggressive entry price policy to encourage racegoers, special promotions for students and young racegoers, both on a daily and a season basis, family tickets at all courses, and more work with Bord Fáilte to promote racing tourism packages.

Turning to those who provide the entertainment, especially owners and sponsors, it is evident from the figures that most owners are not in the game to make money. This year total prize money is expected to be £14 million from which, after deductions, owners will get £11 million. It is estimated that the total costs of keeping 5,000 horses in training this year will be approximately £40 million, including entry fees. Furthermore, the value of the horses in training in any one year must represent a capital investment of at least £80 million. Accordingly, owners must be regarded as by far the main supporters of staging racing in Ireland.

Prize money needs to be increased if we are to retain our current standard of racing. There is an urgent need to establish a central sponsorship committee or group to set targets for achieving sponsorship levels for prize money and to take action to ensure these targets are achieved.

I am glad to note that some racecourses which were in difficulty not so long ago are now doing quite well, mainly due to local effort and commitment. For this reason there is little point in targeting any racecourse for closure. However, minimum standards should be set down now or as early as possible for all facilities at our racecourses. The upgrading of facilities must be done on a planned rather than piecemeal basis. Some courses may be identified for development as flagships at which a superior standard of facilities can be made available. There is a tremendous amount of goodwill on the ground towards the sport and local tracks in particular in all parts of the country. Where possible a way should be found to harness this goodwill factor.

A contribution towards a modest improvement in facilities together with a national programme promoting the sport could be of great help to tracks. Furthermore assistance in finding community and local business support and sponsorship would go a long way towards putting those tracks that are facing difficulties on a sounder footing. I would also like to see performance related incentives being introduced for tracks. Running and promoting a race meeting is an expensive business. The incentive to attract serious sponsorship or to promote a fixture more widely can be restricted by the fact that, if a track succeeds in getting a large attendance, it only receives the admission charge and perhaps the bar profits for itself while the vibrant betting market created by its efforts yields little to it but substantial moneys to the IHA. In order to give a track a real incentive to encourage higher attendances, greater sponsorship and bigger betting, the IHA should consider giving more generous development or maintenance grants or even special prize money grants to the racecourses that yield the better returns for the industry through the betting levies and tote profits.

The development of non-racing activities at racecourses is another option. In the greyhound industry, for example, a major development undertaken in 1995 was the provision of a grandstand restaurant, hospitality suites, new kennels and full bar facilities in Shelbourne Park at a total cost of £2.5 million. The provision of these top class facilities has allowed Shelbourne Park to compete as a leisure and entertainment centre and to attract new customers to the sport of greyhound racing. The results of this development, coupled with a strong marketing campaign, have been spectacular with attendances and tote betting up by over 100 per cent. If the same ingenuity were applied in respect of horse racing I could see racecourses being used for a wide variety of events including, for example, county shows and air displays.

The capital development fund which was launched in 1996 is a significant development and will lead to a planned upgrading of facilities at racecourses, thereby enhancing the attractiveness of horseracing. The fund provides for a capital investment of £30 million. This new initiative is a key turning point for the sector and will ensure its ability to expand and develop in a planned manner. While major central support is now available, it is also critical that the business community invests in local racecourses. Given the limited number of racing fixtures for each course, racecourse committees will have to look at non-racing revenue to maximise returns and assist in racecourse development.

The key points in relation to the development fund are that grants will be provided by the authority on the basis of 50 per cent of the cost of the approved projects. The authority must be satisfied that racecourses have adequate resources to meet the balance of the cost or that necessary financing arrangements are in place. An important objective of the fund is to assist racecourses to develop the full potential of their businesses. Therefore, the authority has stressed the importance it attaches to the use by racecourses of capital from the fund not only to provide enhanced facilities to accommodate the existing and potential market of each racecourse but also to assist in improving the revenue earning capacity of racecourses and to improve financial viability.

In addition to developing facilities we must market the product. This is a key area where substantial progress can be made quickly. We need more focused marketing to specific groups at differential levels of pricing. Young people are the key to the future. Some courses have special youth promotion race days and this concept should be expanded. Group marketing — as in the case of "Go Racing in Kildare"— is a welcome development. The IHA has now begun to address these problems but much more needs to be done and a real difficulty is that most tracks do not at present have either the required skills or the resources. It remains for the IHA to provide an anchor for this development.

For all of these developments we should not forget that in order to deliver quality racing we need quality horses. The structure of thoroughbred breeding is rather unique in this country. On the one hand there is a relatively small number of specialised stud farms with large numbers of mares and stallions. On the other hand there is a substantial number of farmer breeders, most of whom have one or two mares producing foals for flat or national hunt racing. In recent years these breeders have had a difficult period with very little financial reward from the marketplace. However, their involvement is one of the strengths and stabilisers of the thoroughbred breeding sector. They combine a passionate interest in horse breeding with a more traditional farm enterprise, such as cattle or tillage.

Many breeders have acted in response to the message coming from the marketplace in recent years by reducing numbers. With no support or safety net system in place it is vital to concentrate scarce resources on the production of quality stock which will bring long-term benefits. However, I am pleased to see that foal production numbers are beginning to expand again. In this context, I want to see a continued emphasis on the production of quality and higher prices to reward the breeders involved.

The tax treatment of stallion fee income has been a major factor in ensuring that Irish breeders have access to world class stallions — a vital factor in view of our reliance on exports. The result of this and a strong marketing drive by Irish Thoroughbred Marketing — a subsidiary company of the IHA — was that 1996 saw significant increases in yearling prices at Goffs and Tattersalls. Foal prices followed this trend. Yearlings commanded an average price of almost £42,000 in 1996, as opposed to just under £26,000 the previous year. Average yearling prices at Tattersalls also rose from £5,500 to £7,500.

The Government is strongly committed to this industry. This support manifests itself in a concrete fashion through the direct funding to the Irish Horseracing Authority, the operation of the National Stud and the taxation system. In recent years most of the Exchequer funding was used for racecourse development, the provision of integrity services and to improve the level of prize money, especially at the lower end of the spectrum. While the Government is a willing helper, the future of horse racing ultimately rests in the hands of those directly involved. The IHA has outlined its proposals in its strategic plan for the development of the thoroughbred racing industry for the period 1997-2001. This plan deals with and sets out targets in all of the following areas: racecourse capital development, fixtures and programmes, prize money, sponsorship, attendances, the tote, bookmaker betting, on course betting shops, marketing the sport, the improvement of integrity services, satellite broadcasting, development of the breeding sector and the marketing of Irish thoroughbred horses.

The IHA will require support from all sectors of the industry in the implementation of the various aspects of the plan. I would urge all those involved in the horseracing industry to support the IHA in its efforts to provide the best possible environment for this important sector and within which racing can thrive and reach its full potential.

Senators raised a number of points. With regard to funding for tracks, the better tracks must get the funds and the fixtures as they are the only ones likely to draw the people and generate betting. However, all tracks may qualify for some development funds but there must be a strong incentive for those which perform. That is the commercial reality. I agree that improved facilities make higher attendances more likely. At present many of our larger tracks are underfunded and we have to start with the flagship tracks and, in time, move on to second and third category tracks.

In regard to racegoers being represented on the IHA, it is for the Minister to decide which organisations represent racegoers. In 1994 the then Minister picked one of the three nominees submitted by the Racing Club of Ireland, the organisation to which Senator McAughtry referred. Therefore, racegoers are represented on the IHA.

I was glad the Senator was impressed by the IHA staff and the attention which he received when he looked for briefing material for this motion. The IHA was established in 1995 with a new chief executive officer and junior management team. In that short time it has presented a strategic plan to the IHA board. It is a very good staff and I am not surprised the Senator was impressed by its performance.

The tote was referred to by a number of Senators. The new management is looking at the tote and examining all the options. In 1996, through good management, the tote yielded £600,000 for reinvestment and contribution to the industry. This can be improved but it must be worked at, which the IHA is doing at the moment.

Senator Lanigan referred to the capital development fund. The £30 million is comprised of £15 million to be provided by the IHA and £15 million to be provided by the racecourses. I refer the Senator to page 23 of the IHA's strategic plan. Some £12 million of the funding will go to category one tracks, with other tracks qualifying for some assistance.

Senator Henry made a number of points about the facilities at tracks. Almost all the tracks have submitted plans for upgrading their facilities under the capital development fund. For example, Leopardstown is planning a further improvement along the lines of the modernisation of Shelbourne Park. We recognise that good basic facilities are essential for our racecourses if we are to attract punters and expand our market share.

I thank Senator McAughtry for moving the motion and compliment Senators for their contributions. The Irish horse racing industry is very important for the sporting and economic life of this country. As I mentioned, a large number of people depend on the industry for their livelihoods and for recreation. It is a very important industry with considerable potential.

The Minister for Agriculture, Food and Forestry has direct responsibility for the IHA and the horse racing industry. I have responsibility for the greyhound industry, which, I am glad to report, is doing very well. It is making great strides, with increased revenue from the tote, on course betting and entry fees, and its future prospects are very bright. I am sure the same will be said in a short time of the horse racing industry. With a very committed Minister, a very vibrant IHA and the type of support which was demonstrated this evening by numerous Senators, I am very hopeful for the future of the industry.

An Cathaoirleach

I support all the positive statements.

Mr. McAughtry

I thank the Minister of State again for his attendance. One would have expected difficulties in producing a Minister this week. If I were a Minister I would not be here but at Cheltenham, with all the ministerial perks which go along with that.

I have a warm regard for the Minister of State, as he knows. Therefore, I take no pleasure in picking him up on the point about racegoer representation on the board, about which there is an ongoing argument. The representative on the board was nominated by the Racing Club of Ireland, but that representative told the club that she had no intention of being a conduit for the Racing Club of Ireland and would not put the club's concerns to the board. I want to get off that point as quickly as possible.

My final point concerns the Northern race tracks of Downpatrick and Down Royal. The Government has helped Down Royal but Downpatrick struggles along with voluntary support. There is a different ethos in racing in the North of Ireland. Greyhound and horse racing have brought both tribes together. It is a continual joy for me to go to Down Royal or Downpatrick and see people from west and east Belfast representing the two colours and to hear the Southern brogues of Turf Club officials and others on the gate. That is an essential component in the peace process.

The IHA covered this in a few sentences by saying that the Southern and Northern Ministers should get together, which seems a less than satisfactory approach. I urge the Minister of State, who has fine officials who can make the necessary contact, to take up this point and see how he can help the Northern Ministry to help Northern racing. It is most important and we would hate to see Downpatrick track, which particularly brings the two sets together, close down.

It is easy to criticise the IHA; I hope I have done so with good humour and in a constructive way. I would be grateful if the points and asides which I made on the five year plan were conveyed to the IHA. It is important that it knows we are not just here to talk about our local tracks, race cards and bad toilet facilities and that we have also dealt with the business rationale which lies behind the five year plan. The Minister of State dealt with it excellently and his Department deserves the utmost congratulations. The IHA could not be led by a better man than Mr. Brosnan, who deserves all our help and support.

Sitting suspended at 7.50 p.m. and resumed at 8 p.m.