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Horse Racing Industry Funding

Dáil Éireann Debate, Tuesday - 12 February 2013

Tuesday, 12 February 2013

Questions (167)

Seamus Kirk

Question:

167. Deputy Seamus Kirk asked the Minister for Agriculture, Food and the Marine the amount of funding allocated by his Department in each of the last two years to each of the following, Horse Sport Ireland, Horse Racing Ireland and Bord na gCon; the relative contribution of each of these sectors to the economy; and if he will make a statement on the matter. [6967/13]

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Written answers

Government support for the horse and greyhound racing industries is provided under the Horse and Greyhound Racing Fund, established under Section 12 of the Horse and Greyhound Racing Act, 2001. In accordance with the Act, 80% and 20% of the monies paid into the Fund each year are distributed between Horse Racing Ireland and Bord na gCon, respectively. The horse and greyhound racing industries generate very substantial economic activity and make a vital contribution to the rural economy including farm incomes. These industries attract significant inward investment into the country.

The amounts paid from the Fund in 2011 and 2012 were as follows:

Name

2012

2011

Bord na gCon

€11,258,000

€11,460,000

Horse Racing Ireland

€45,032,000

€45,830,000

The level of funding provided has reduced by 28% since 2008.

Bord na gCon

Bord na gCon is a commercial state body, established under the Greyhound Industry Act, 1958, chiefly to control greyhound racing and to improve and develop the greyhound industry. The Board has wide powers to regulate all aspects of greyhound racing in the Republic of Ireland.

The Board of Bord na gCon, comprising of seven members - a Chairman and six ordinary members, is responsible for leading and directing the activities of the organisation.

Bord na gCon has estimated approximately 10,500 people derive employment, directly and indirectly, from the greyhound industry in Ireland and the industry’s contribution to the economy is estimated to be in excess of €500m.

Horse Racing Ireland(HRI).

HRI is a commercial State body, established under the Horse and Greyhound Racing Act 2001, which dissolved the Irish Horseracing Authority and extended the provisions contained in the Irish Horseracing Industry Act 1994. In replacing the Irish Horseracing Authority and incorporating certain administrative functions of the Turf Club (the Racing Regulatory Body) and with a Board representing key sectors of the industry, a more comprehensive national authority for racing in Ireland was created, charged with the overall administration, promotion and development of the industry with a funding mechanism established under statute.

Horse Racing Ireland and Bord na gCon are required to act in accordance with their statutory obligations, the Code of Practice for the Governance of State Bodies and any other directives issued by Government or by my Department.

The Irish Thoroughbred Industry

This industry has a significant economic impact across the country. It is estimated the industry contributes almost €1bn to the Irish economy and underpins approximately 17,350 jobs.

There are approximately 7,000 thoroughbred breeders in Ireland with 95% owning less than 4 broodmares.

2012 has been a very eventful year for the thoroughbred industry with Ireland continuing to breed world class horses which turn in great performances at home and abroad.

The bloodstock market was yet again a star performer for the industry. The total turnover figure for horses sold at public auction in 2012 has shown further gains on last year. The figure for 2012 is €93.5m and this represents an impressive 15.4% increase on the €81m achieved at public auction in 2011.

International investment in the bloodstock sales figure was greater than ever with 4,837 Irish foaled horses being exported to 34 different countries. Ireland remains the biggest producer of thoroughbred foals in Europe and is fourth in the world. The value of Irish foaled thoroughbred exports sold at public auction in 2012 was €174m. This represents an increase of 11.4% on the 2011 figure (€156m).

In 2012 I commissioned Indecon Consultants to conduct a “Review of Certain Aspects of the Irish Horse Racing Industry”. Indecon identified that changes are required to underpin a viable and sustainable horse racing sector and to realise the economic potential of the sector. I am currently addressing the recommendations made in that report.

Horse Sport Ireland

Horse Sport Ireland (HSI) is a Company limited by guarantee and not having a share capital. It is approved under the relevant EU and National legislation as a studbook keeping authority and has a broad range of functions in the sport horse sector.

Horse Sport Ireland is in receipt of an annual grant and has received funding under the National Development Plan 2007 – 2013 from my Department to assist its work in promoting and developing the non –thoroughbred horse industry. The following amounts were paid by my Department to Horse Sport Ireland in 2011 and 2012:

Year

Annual Grant

NDP

Total

2011

€1,285,000

€615,728

€1,900,728

2012

€1,220,000

€607,072

€1,827,072

A recent report, commissioned by Horse Sport Ireland and conducted by UCD, found that the contribution of the Irish Sport Horse industry to the Irish economy is in excess of €708 million per annum.

HSI is also in receipt of funding from the Irish Sports Council in respect of its mandate as regards equestrian sports.

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