I move:
That a supplementary sum not exceeding £50,000 be granted to defray the charge which will come in course of payment during the year ending on the 31st day of March, 1964, for certain Miscellaneous Expenses, including certain Grants-in-Aid.
Until now the Racing Board have been able to finance their work for the improvement of horse racing and horse breeding from the proceeds of the levy on bookmakers in respect of course bets and the deduction from totalisator stakes.
After meeting administrative expenses and ordinary taxation, the funds collected in this way are applied by the Board mainly to increase prize money; to subsidise the carriage of horses; to finance the costs of the Photo-finish, Photo Patrol and Dope Detection Units operated by the Stewards of the Turf Club and to improve stands, buildings and race courses.
The money put into the industry by the Board has increased substantially over the past few years. In the year ended 31st December, 1962—the latest for which published accounts are available—payments amounted to some £326,000. Of this figure, contributions towards prize money accounted for £246,000 and payments towards carriage of horses for £50,000.
Bearing in mind the fillip which the horse-racing industry in Britain would derive from the recent establishment there of the Horse-race Levy Board, the Racing Board felt that still further increases in prize money, etc., were needed if Irish racing was not to deteriorate seriously in comparison with British standards and if owners and trainers were not to be attracted away from this country to the disadvantage of the industry and of the economy generally. The Board were satisfied that it would not be practicable to raise the extra money needed by means of an increase in the levy on bookmakers or in the deduction from tote stakes because they apprehended that a reduction in the volume of betting would ensue from such measures. The Board, therefore, approached me in November, 1962, with a proposal for direct State assistance.
Before a final decision was reached on this proposal, the turnover tax introduced a new factor into the situation. Indeed, during the debate on last year's Finance Bill, Deputy Cosgrave put forward an amendment designed, he explained, to exempt course betting from the new tax. I indicated why I felt unable to accept the amendment but at the same time I told the Deputy that I intended to meet members of the Racing Board and that, if they convinced me that the tax would have an adverse effect on horse racing, I would be very sympathetic to their problem.
In the discussion with the Racing Board which followed, the members held strongly that the Board would have to bear the turnover tax in respect both of betting on the course with bookmakers and on the tote in the belief that, if it were attempted to pass on the tax, attendances at race meetings would fall. Given the Board's expert knowledge in this field I felt constrained at the time to accept their opinion that they would have to bear the tax out of their own funds. As events are now shaping, it may be that it will in the future be possible to take a less pessimistic view. On-course betting increased in volume last November and December as compared with the corresponding period in earlier years and both betting and attendances are bound to reflect in the future the increase in money incomes which is at present taking place.
It is clear, however, that the position whereby the Board bears the tax is now depleting the funds available for the Board's activities. In fact, a deficit is already expected for 1963 on ordinary account and without reckoning turnover tax.
Having taken account of all the circumstances, I have come to the conclusion that I have no alternative but to supplement the Board's finances by means of the £50,000 asked for in this Supplementary Estimate so that there will be no impairment of their capacity to continue to carry out the important functions allotted to them in promoting the bloodstock industry which is such a valuable item in our national economy.
I recommend the Supplementary Estimate to the House accordingly.