I thank the Deputies who contributed to the debate for their supportive and positive comments on the industry. They transmitted their liking and passion for the industry. There is not a Parliament in the world which would have such an animated debate on the horse, and long may that continue. The National Stud is thought of very highly across the board and this is as it should be. It has served the State, thoroughbred breeders, the horse industry in general and the tourism sector in an excellent fashion.
Deputy Dukes has particular knowledge of and keen interest in the stud. He made some positive comments on the stud and mentioned how well it is regarded in Kildare. He was entirely supportive of and constructive in regard to the stud. He singled out the management, staff and board there for their professional contribution to the stud over the years.
One of the issues raised by Deputies Dukes, Power and others related to section 2(3) which deals with the vesting of the National Stud farm in the stud company. I do not agree that these provisions would necessarily create a problem for the stud. That was not the intention. Deputies Dukes and Power referred to the provision whereby if the Minister for Agriculture, Food and Rural Development gives consent to the sale of vested land then effectively the Minister would, with the consent of his colleague in the Department of Finance, decide how the proceeds would be used. In my address to the House last week, I said in reference to section 2(3)(a) that, if the revenues from such a sale were relatively small or reasonably in proportion to the stud's needs generally, then the stud could use the entire proceeds as it saw fit. This would include any requirement of the stud to purchase other lands at a potentially very high price.
The possibility mentioned in section 2(3)(c) of some of or all of the funds going to the Exchequer is only envisaged as being required in the exceptional circumstances where rezoned land may be sold at very high values and could be replaced by suitable agricultural land leaving a potentially huge excess way beyond the stud's commercial or other needs. In such a case, the excess could be used for other purposes to the benefit of the State.
However, being a very considerate person who is always prepared to listen to a reasonable proposition, and given that a good case was forcefully made by the two Kildare Deputies in particular, I agree that these provisions could be used otherwise. I have always placed great trust in the board of the stud company. The board is appointed by the Government and such boards must be given the flexibility to do their job and should not have their hands tied. I have a high regard for the current and previous chairmen and members of the board of the Irish National Stud. I have sought to ensure they have the necessary powers, freedom and resources to do a first rate job in developing the stud in the context of the widest possible interpretation of their role and to the greatest extent feasible.
Therefore, and in deference to the force of arguments made by my colleagues, I will reconsider the detailed provisions of section 2 and have already asked my officials to examine how this section could be redrafted to allow the stud company the greatest amount of flexibility while ensuring the protection of the National Stud farm as an important State asset. I hope to bring forward on Committee Stage a suitable amendment to take into account the suggestions made. I am satisfied we can provide a solution acceptable to all.
A number of Deputies, including Deputies Dukes and Power, raised the issue of the foal levy. An enabling provision allowing for its introduction was provided for in the Horse and Greyhound Racing (Betting Charges and Levies) Act, 1999. The actual rates of levy and other implementing details were introduced by the IHA with my consent by means of regulations. I am aware of difficulties which have arisen in the first year of operation, especially for smaller breeders. I understand the IHA is in the process of setting up a committee to review the regulations and to include people from the Irish Thoroughbred Breeders Association, the IFA and other interested parties from the IHA and a senior official from the Department of Agriculture, Food and Rural Development.
I expect that committee to propose improvements and refinements to the application of the levy and I will carefully consider any proposal to amend the regulations, especially where the smaller breeder is concerned. I assure the House that I am most anxious to ensure that any changes to the current levy will take account of the broader industry and the person with two or three mares. The review will be concluded in time for the next breeding season. If amendment to the primary legislation is required, I will have an opportunity to examine that in the context of planning the new horseracing Bill which I am sure will require amendments to other provisions of the 1999 Act.
A number of specific matters were raised during the course of the debate to which I wish to respond. Deputy Donal Carey was the most recent to raise the provision of training, education and the farriery system. It is amazing there is a shortage of blacksmiths in Ireland. I sought to address this problem a short time ago. When I was growing up there was a blacksmith in every village and they were very skilled craftspeople. In the course of recent visits to other countries, I took some time off to look at an area of my responsibility, namely, the horse industry. The number of people who have done courses in the National Stud and in Kildalton, and such places is amazing. The expertise, professionalism and empathy Irish people have with horses is extraordinary.
However, in the area of farriery the skills are declining and diminishing. I sought to do something about this to provide master farriers who could train younger people. I arranged for that to be done on the farm of the Irish National Stud adjacent to the RACE apprentice school. Planning permission had to be applied for but an objection was lodged immediately and the process was delayed. It went to An Bord Pleanála and I am pleased that that has now been resolved and planning approval has been granted. Unfortunately, at that stage the money set aside for the school under the previous round of Structural Funds had had to go elsewhere but I ensured there was adequate financial provision made in the proposals under the new round of Structural Funds. I hope that, once EU approval is granted, we will be able to proceed with the construction of a master farriery school beside the RACE centre.
As well as that specific area of training and education, I will ensure in the new Bill setting up Horse Racing Ireland that attention will be given to proper education and training structures for the industry for the future. As Deputy Donal Carey said, there are stud farms where the highest level of expertise is required. Stable lads deal with high class thoroughbreds who are so precious one could hardly look sideways at them. A tremendous amount of expertise is required. There are training courses in the Irish National Stud for the thoroughbred side and in Kildalton for the non-thoroughbred and a new equine faculty has been established in the University of Limerick. It is a matter of pulling it together and putting a proper structure in place. That is essential and I am committed to that.
Deputies Wall and Power and others referred to the position of stable lads. When people go racing, they arrive during the early part of the race meeting at least and, it is hoped, before the first race. Everything is laid on for them. The horses are provided and the facilities have been improved in many tracks. They sit down to a comfortable meeting and have a bit of punting to raise the level of excitement. The jockeys get on board and, if it is national hunt, they endanger their lives every time they go out because horrific accidents can occur. We hardly ever take into account the position of the other people who facilitate all this happening.
The poor lads at the bottom of the pile are the stable lads. They must set out early in the morning for the racecourse. When everything is over, they must bring the horses back, hopefully in one piece. If it is a festival meeting, they must be back again the following day and return home the following night. I have the greatest understanding of their position. People in the industry must comply with the minimum wage. However, the conditions in some of the tracks are such that stable lads must change in a horse box. If they are looking for a bite to eat or a bowl of soup, they are told: "Well look, the restaurant is booked out at the moment by some of the salami sandwich brigade". That is not fair and it is not good enough. I have written to every single racecourse about it and I will not be satisfied until that changes. I am sure everyone in the House has the same concern that people in the industry should be treated well and not shabbily, as they have been up to now. Stable lads in particular are doing a marvellous job and their lot will be substantially improved.
Every speaker referred to the new structure for the thoroughbred industry. With the substantial improvement in funding, we will seek to ensure the additional moneys are broadly spent and applied. Yesterday, when the IHA made its first funding announcement, I was pleased that it applied to the national hunt sector where the minimum prize money for grade one races will be £50,000, and up to £10,000 for ordinary races. There will be sponsorship on top of that. It is important for racecourse managements to obtain sponsorship. Although it is fun, keeping a race horse is a costly business. In flat racing, as Deputy Bradford said, if one spends £5,000 or £10,000 and in the first race one's horse is up against a £1 million or £2 million yearling, one does not have a chance. The statistics show that 17 out of 20 grade one flat races are won by horses belonging to two or three well-known owners. The ordinary person has no real chance, except in very exceptional circumstances and, so, the crowd will not be there for group one races and classics at the Curragh and elsewhere. They will be there for national hunt racing, however, which is the life and soul of the industry.
Deputy Perry mentioned the non-thoroughbred horse industry and even though it is not part of the National Stud or thoroughbred industries, nonetheless, the two industries are very closely related. The Deputy made some important points. I looked at this industry in the early 1990s, and in 1993 I established the Irish Horse Board under the chairmanship of Dr. Noel Cawley. Mr. Dermot Ryan from the Department provided a secretariat, and we also provided the horse register from the Department. Much support was provided from Structural Funds, particularly from 1994 to 1999. Some exciting new schemes are envisaged in the new Structural Funds for non-thoroughbreds. I agree that people are interested in the sector, from ponies up to eventers and dressage, cross-country and show jumping. It is fantastic to see Irish horses and riders performing so creditably. For example, we won the Nation's Cup event this year by a mile, and we won ten such cups throughout Europe, as well as coming out with flying colours in Calgary, Canada. Our riders do a marvellous job for Ireland in flying the flag at overseas events in the teeth of strong competition.
Although we did not have an official team in the Olympic Games in Sydney, a neighbour of mine, Patricia Donegan from Bandon, gave a professional performance in the cross-country event there on her horse Don't Step Back. Well done to her. At least four of the horses competing in the Olympic cross-country events were bred in west Cork, including Cutam Mad, ridden by Mr. David O'Connor of the United States. A few other horses were bred in other parts of the country. In many ways we flew the flag for non-thoroughbreds.
The Irish National Stud has helped to promote and sustain the image of the Irish thoroughbred racehorse as well as Irish racing, generally, on the world stage. It has achieved this by adopting a very pro-active and professional approach both at board and executive management level, using a high degree of acquired skills and an effective process of strategic planning. During the debate a request was made for a mission statement and I will bring that to the attention of the board and management.
Deputy Bradford, who has an intimate knowledge of the industry, raised the stud's position relating to national hunt racing. The National Stud has a world-wide reputation, with world class stallions such as Indian Ridge, Desert Prince and Ashkalani. The stud also has national hunt stallions, but it took a decision a couple of years ago that it would be in the best interests of the national hunt industry to have those stallions located outside Kildare since most national hunt racing is based outside that county. For example, one of the stallions, Yashan, is with Mr. Dinny Vaughan, down in Deputy Bradford's neck of the woods in Cork. Another very good national hunt stallion, Broken Hearted, is owned by the National Stud also, but is farmed out, as is Tremblant, in the west. This year, the stud purchased a brand new and very well bred national hunt stallion, Rudimentary, which is with the Pims in Anngrove Stud. The national hunt stallions, therefore, are widely distributed for the benefit of the national hunt people. I will seek to ensure that the National Stud retains that capacity, capability and facility for national hunt breeders. It is a good thing that they should distribute them around the country.
The Aga Khan has been lauded for his loyalty to Ireland as a base for his equestrian operations. His grandfather the Aga Khan, followed by the Ally Khan and now the present Aga Khan have had connections here since the 1920s. Last year, Daylami was horse of the year and retired here to stand at stud when he could have been retired to any country in the world. This year, Sinndar, uniquely won the Epsom and Irish Derbys and the Prix de l'Arc de Triomphe, before retiring to stand at stud here. It is tremendous to see world class horses, such as Giant's Causeway and Montjeu, being retired to Coolmore Stud in Tipperary. Mr. Liam Cashman's Breeder's Cup winner, Barathea, which is a horse of outstanding international competence, has retired to Ireland, also. We have outstanding international stud farms and I compliment their managers and operators.
In the course of the debate on the Bill, a question was raised concerning how the Turf Club would fit into the new body, and whether it had been unfairly treated in the debate over the establishment of the new structure. The Turf Club has been around for centuries and is the integrity base for the horse racing industry. That was accepted and acknowledged during the negotiations, so much so that the club is being given five members on the new body. That is a far greater number than any other interest, including owners, trainers and bookies. The Government of the day has only one member on the board. The pivotal position of the Turf Club was, therefore, taken into account.
The question of punters having a representa tive on the board was mentioned. It was felt that 17 members was too unwieldy a number on the old IHA, and that some effort should be made to have a more compact board. There will be a facility for punters' representation, however, and I will ensure that consultative sub-boards will be provided in the new authority, so they will have adequate representation. It is more important, however, to have a representative supporters club or board at each race track.
I was delighted that Deputy McGahon, a great supporter of the industry, was generous enough to say that Mallow racecourse was a success. It is a superb facility which is well patronised. It has its own board. If it is not representative, it should be broadened. The various supporters clubs in Galway and Listowel, for example, do a fabulous job and their views are taken into account.
The contributions made today were positive and constructive.
It is unfortunate that the Kildare bypass has to cut across part of the lands of the National Stud. We cannot, however, hold back improvements in roadways and realignment. Anyone travelling through Kildare will have first-hand experience of the difficulties in the area at peak times and will accept that a bypass is needed. Commercial realities of the day and the essential requirements of the national road network must be taken into account. Thankfully, the route chosen will have a small impact on the stud. For example, only 50 of the overall total of 950 acres will be cut off from the main farm. Preliminary works on the bypass have commenced. I understand the road will take about three years to complete. Every effort is being made to ensure disruption to the stud during this period is kept to a minimum.
The National Stud is only a very small part of the overall horse racing industry. I was delighted at the extremely positive reception given to the proposals which my colleague, the Minister for Finance, Deputy McCreevy, and I have been promoting in recent times on the restructuring of the organisation and funding of the horse racing industry which will mean substantial change, particularly for those employed by or involved with the IHA, the Turf Club and the Association of Irish Racecourses. While change is difficult, it is necessary.
I am satisfied that in this case it will result in substantial long-term benefits for all those participating in the industry, particularly those who depend on it for their livelihood, that is, stable staff, jockeys, trainers, owners and businesses providing essential services for the sector. I am looking forward to introducing the necessary legislation amending the relevant 1994 and 1999 Acts in this area in the coming months. I am satisfied that the overall outcome will be good for Irish racing and facilitate its development.
In this context, we are providing a brand new racecourse at Patrickswell, County Limerick, about which I am sure my colleague, the Minister of State, Deputy O'Dea, is very pleased.
