Before raising this important matter, I congratulate the Minister of State, Deputy Davern, on his recent success on the turf with Arctic Copper. I compliment his good judgment in originally selecting the horse.
Adjournment Debate. - Horseracing Industry.
I hope that is not a reflection on Deputy McGahon's selections.
The Minister, Deputy Moffatt, told him to say that.
I wish to share my time with Deputy Bradford.
Is that agreed? Agreed.
The racing industry is an important asset and the Government's proposal to establish the board of horseracing Ireland is a major step in the development of that industry.
Could we have silence in the Public Gallery please?
I do not have to emphasise to the Minister or the House how important that industry is. Some people estimate that between 20,000 and 25,000 people are engaged across the racing sector. In drawing up the legislation, however, the Government has not given an opportunity to Members of the House to voice their interests and concerns. It is disappointing that when this issue comes before the House in the form of legislation, Members do not have an opportunity to express their views about the future of the industry. Will the greyhound industry also be included in the new legislative plans that are being put in place? Greyhound racing has become a major sport which forms part of the general leisure industry.
Longford is in the process of retaining its dog track which I hope will benefit when funding is allocated so that the local greyhound stadium can be developed. Small courses in the midlands, such as Roscommon and Kilbeggan, have made major strides over the years. Sligo, to a certain extent, has fallen behind and is one of the tracks that needs a major boost. It is important to retain that track in the north-west.
I was shocked to read a racing correspondent who wrote that, when Fine Gael returns to power, it will be bad news for the racing industry. I said, "Fair play to the spin doctors; they're doing their job". The Minister of State knows that the Minister, Deputy Walsh, opened stands and facilities in his first two years in office, all of which were put in place during the rainbow Government.
I thank my colleague, Deputy Belton, for raising this important issue as it gives me an opportunity to say a few words on it. I reiterate what he said about the strong commitment of the Fine Gael Party to the racing industry. Everyone can be assured that Fine Gael in Government will put the maximum amount of resources into racing which is good not only for social life in rural Ireland but for the rural economy and the economy in general. Deputy Belton highlighted the number of jobs involved.
I also support what Deputy Belton said about the need for statements to be made in the House before the legislation comes forward. I would appreciate if the Minister of State raised with the Government Whip the possibility of setting aside two or three hours some Thursday to allow Members make statements about the proposed changes. I certainly welcome them and congratulate the Minister of State and his ministerial colleagues on the effort they have made. It would be helpful if, in advance of the legislation being presented and debated, Ministers had an opportunity to listen to a wide range of views from Members. Perhaps the Minister of State might take that on board.
The changes are welcome, they are good for the racing industry and will receive support from all sides of the House. I hope that everyone will now be able to co-operate. As the Minister of State knows, there was difficulty in getting everyone to work together, but that has been resolved. Co-operation is the key word for the future in Irish racing.
I thank Deputy Belton for his recognition of the good choice of Senator Cosgrave and myself on the horse selected. Unfortunately, Deputy McGahon cannot share the same selection choice.
There is a long way to go and we never pulled a horse.
We never pulled ours either. If someone has ten successes out of 11 runs, one is doing very well.
The House will be aware that the horse breeding, training and racing industry is a very important one. It contributes substantially to the generation of income from valuable farm enterprise, to employment, tourism, rural development, social, community and cultural life and to the economy as a whole.
The sector has undergone major structural, organisational and legislative changes in recent years. The Irish Horseracing Authority was established in 1994 and in 1996 it produced the industry's first strategic plan covering almost every aspect of the sector. The State has provided a substantial and increasing financial contribution to the implementation of this plan each year since. The result of all this has been to turn around the fortunes of the industry from virtual stagnation in the mid-1990s to considerable growth in recent years in all the key performance statistics for the sector, where the targets in the IHA's plan have not only been met but are being surpassed on an annual basis.
However, continued and sustained development is essential. Together with the Minister for Finance, we have over the past year examined closely the long-term future of the racing industry. We have paid particular attention, particularly in the organisational structures servicing the sector and income sources funding the indus try, to what further improvements can be made to ensure the industry reaches its full potential and retains and continually improves upon its market share in a very competitive leisure and entertainment sector. The Minister for Finance indicated last year that he would be prepared to examine the existing financial provisions to support racing in the event of the horseracing industry agreeing to establish a new single governing structure.
Following a period of extensive consultations and negotiations with the organisations involved in the industry in the first half of this year, the Minister for Finance and my colleague, the Minister for Agriculture, Food and Rural Development, Deputy Walsh, announced detailed proposals for the future organisation and funding of Irish racing in July 2000. The aim of these proposals was to provide a sound basis for the ongoing development of all parts of Irish racing and to position the industry at all levels to meet the challenges which lie ahead. Central to this was a unified administrative and financial structure.
The aim was to achieve desirable rationalisation, efficiencies and other potential improvements in the overall operation of Irish racing as a whole and the provision of a secure financial base. This financial security would be achieved into the future by securing for the industry the revenue coming from the tax on off-course betting which goes to the Exchequer. This will equate to the proceeds of the 5% tax on off-course betting allocated on a 4:1 ratio between the horse and greyhound industries. The greyhound sector has made spectacular progress in recent years and this additional funding will enable it to achieve further development.
While the proposals were generally welcomed through the horse and greyhound industries, the Turf Club and the Association of Irish Racecourses, AIR, expressed some reservations. At a meeting with the AIR on 13 September, agreement was reached with that body on the main issues of concern to it. The Minister, Deputy Walsh, with the Minister for Finance, met representatives of the Turf Club on 19 October and a basis for the resolution of the outstanding issues of concern to the Turf Club was agreed.
There is no doubt but that the road since the announcement of our proposals has been long, to say the least. Consultations have been extensive and negotiations went through a very difficult period. This is as would be expected when the level of change being proposed is so great. However, the importance of the proposals for the future of the horse and greyhound industries and all those depending on them for their livelihood was accepted by all. I am glad to be able to record the success of the agreement reached with all parties. We are in discussion with the Minister for Finance on the new funding arrangements and are making the arrangements to facilitate the introduction of the required legislation for the establishment of the new horseracing body as soon as possible. I look forward to that Bill and believe it is a success for the industry, the people involved, the racing public and punters, including Deputy McGahon.