Dáil Éireann Debate, Thursday - 14 November 2013
13. Deputy Clare Daly asked the Minister for Agriculture, Food and the Marine the reason he ignores the Indecon report commissioned by his Department in 2012 which stated that the grant to the greyhound and horse racing industries was unsustainable; and the reason he chose to increase their subsidy to €54 million. [48142/13]
View answerIndecon Report
Indecon Consultants were commissioned by my Department to undertake a review of certain aspects of the Irish horse racing industry. The terms of reference provided to Indecon did not extend to the greyhound racing industry. The Indecon Review consisted of an in-depth analysis of the legislation, governance structures, funding and management of the horse racing industry in Ireland and the report published in July 2012, contained a range of recommendations to assist in the future long-term development of the sector.
The Deputy is mistaken in thinking that State support for the horse and greyhound racing industries has increased. In fact State funding for the horse racing industry has decreased each year since 2008 when the provision was €61m, to the 2013 provision of €44m, reflecting a decrease of 28% over the period Research recently published by the Irish Thoroughbred Breeders Association indicates that the horse racing and breeding industry supports 14,000 jobs and creates €1.1bn in economic output. State funding for the greyhound racing industry has also been reduced by 28% in the same period.
The Indecon Report confirmed the importance and potential of the Irish Horse Racing Industry and affirmed that with appropriate policies and structures in place the sector can contribute to the economic and social development of the country and to the expansion of employment.
Indecon made a number of recommendations with regard to funding, legislation and governance, streamlining of functions between the Turf Club & HRI and improved marketing and competitiveness of the sector. I have confirmed, some time ago, my general acceptance of the recommendations contained in the Indecon Report and I have since the publication of the Report done my best to ensure the recommendations contained in the Report are followed through.
Indecon did not state that “grant to the greyhound and horse racing industries was unsustainable”. It did, however, point to the need for change in the State funding model and in particular identified the betting industry as being “the main potential source of additional funding. It also stated “that, in terms of funding, it is important that sufficient funding is provided to ensure reasonable prize money and to enhance the reputation of the Irish horse racing sector. Resources are also needed to finance racing integrity services, which are essential to the maintenance of the credibility and reputation of the sector. The development of racecourses and maintaining the disease free status of Irish bloodstock also require appropriate funding. In addition, effective international marketing is an important component in realising the economic potential of this unique sector.”
I am pleased to inform the Deputy there are changes imminent to address the anomalies that exist with regard to the taxation of betting. My colleague, the Minister for Finance, is responsible for taxation policy and he introduced the Betting (Amendment) Bill 2013 earlier this year which will bring remote and on-line betting within the tax net. This legislation is working its way through the system and is currently with the European Commission. This is consistent with the Indecon recommendation which advocated “Measures should be introduced to secure a significant increase in taxation from the Betting Sector.”
I am also mindful of the need as highlighted by Indecon to maximise efficiency, effectiveness and value for money, I am aware that the Turf Club and Horse Racing Ireland have been engaged in on-going negotiations with a view to streamlining functions between the two bodies with a view to eliminating duplication.
Finally, it is important to recognise that the horse and greyhound racing industries together provide almost 24,000 jobs, many of them in rural Ireland, and stimulate approximately €1.6 billion in economic output annually. I will continue to work to ensure that these important sectors continue to make the maximum possible contribution to employment and the economy generally.
