Dáil Éireann Debate, Tuesday - 6 November 2012
97. Deputy Martin Heydon asked the Minister for Agriculture, Food and the Marine his views on the future funding of the horse racing industry, the need for a multi annual solution that would provide some stability for the industry; and if he will make a statement on the matter. [48405/12]
View answerEarlier this year I commissioned Indecon Consultants to undertake a Review into certain aspects of the Irish Horse Racing Industry. Indecon considered inter alia legislation, governance structures, funding and management of the horse racing industry in Ireland. Regarding funding the Report resulting from the Indecon study supports additional and sustainable funding for the development of the sector but states that this must be accompanied by an equal priority to maximise efficiency, effectiveness and value for money. In this context it identifies a number of areas to be addressed and recommends the introduction of measures to secure a significant increase in taxation from the Betting Sector and the creation of a level playing field between retail and remote off-course bookmakers and betting exchanges; a reduction in the size of the HRI Board and changes to the nomination and appointment processes; changes to the Committee structure of the Board; streamlining of functions between HRI & the Turf Club; new arrangements to address marketing and competitiveness.
I have indicated my general acceptance of the recommendations contained in the Indecon Report and I have confirmed my intention to bring forward legislative changes, where necessary, to implement the recommendations and update horse racing legislation.
Having considered the Indecon Report I have asked the Turf Club and HRI to immediately establish a Joint HRI/Turf Club Implementation Task Force, to address the opportunities for integration of functions, including shared services, with a view to achieving greater efficiencies and to achieve a minimum of 10% reduction in costs as identified in the report. This is a critical pre-requisite to future funding for the industry.
On funding generally the Minister for Finance has published the Betting (Amendment) Bill 2012 which when enacted will ensure that all bookmakers taking bets from Ireland will pay 1% betting duty on those bets in the same way that betting shops currently do. Betting Exchanges will also be subject to tax under the new arrangements but the calculation of the tax will differ from that applying to bookmakers. This measure will increase the yield to the Exchequer from betting.
On the specific allocation to the horse racing industry Indecon also recommended a multi-annual commitment and this is matter I am considering having regard to the current economic conditions and the general budgetary position.
