The explanatory memorandum states that this section exempts from betting duty bets placed on course at a horse race-meeting on events taking place elsewhere. The purpose of the amendment is to align this section more closely with the provisions of the subsequently enacted Irish Horseracing Industry Act, 1994, and to clarify that, for the purpose of the exemption, on course betting does not include bets placed by means of telecommunications. The section has effect from the day of passing of the Act. I am not clear about the Minister's intention in this regard.
SECTION 100.
Question proposed: "That section 100 stand part of the Bill."
I am advised that this section makes a technical amendment to section 89 of the Finance Act, 1994, which provided for an exemption on betting duty on bets placed on course at a horse race meeting relating to events taking place elsewhere. The purpose of the amendment is to restrict the exemption to racecourses authorised by the new Irish Horseracing Authority, which was established by ministerial order.
If someone at an Irish race meeting bets on the track, he is subject to the 5 per cent betting levy which goes to the Irish Horseracing Authority. If one wishes to place a bet on the English Guineas with a book-maker at a meeting, some of them will take the bet but will charge the off course betting tax. Will that continue?
Mr. Mooney, an official in the Department of Finance, will explain.
The idea is to exempt the type of bet the Deputy described from excise duty, but that the levy which now applies to the on course bet will apply in this case. The proceeds from the extra off course bet will also be given to the Irish Horseracing Authority.
I understand it now. During discussions on the Irish Horseracing Authority Act, 1994, it was stated that bets placed on the track relating to an off course event would come within the normal betting duty on the track and would be given to the Irish Horseracing Authority.
That is what this is designed to do.
One would not get that impression from the explanatory memorandum. What is the meaning of "telecommunications" in the explanatory memorandum?
It means telephone bets.
Does the Bill cover that?
It does not cover it because that cannot be controlled.
Someone could be standing at the track——
And leave his mobile telephone after him.
One could ring a friend at the racetrack and ask him to put on a bet on their behalf.
Chairman
Has the Minister now given his advice?
Yes.
Question put and agreed to.
Section 101 agreed to.