I welcome the opportunity to speak on the Estimates for 2004 which further reflect the consolidation and prioritisation of Government spending after several years of unprecedented growth. I am particularly pleased that the allocation of over €430 million to my Department, an increase of 8% on the 2003 allo cation of €399.5 million, will enable me to maintain the thrust of State support for the arts, sports and tourism sectors.
I am happy to announce significantly increased funding of €52.5 million for the Arts Council in 2004, an increase of 19% on the 2003 provision. Artists and arts organisations have every reason to be optimistic about their sector. I have appointed a new Arts Council, the composition of which has been widely and warmly welcomed. Members of the Arts Council have a record of distinguished service and achievement in many walks of life and they will bring energy and dynamism to the arts.
I have secured an increase of 9% in funding for the Irish Film Board in 2004. The board is at the heart of the Government's strategy to promote indigenous films and film makers and the funding being provided for 2004 is solid evidence of this fact.
As a reflection of my responsibility under the Arts Act 2003 to promote Irish art at home and abroad, a total of €6.7 million has been provided for the promotion of Irish art abroad in 2004. Apart from the ongoing funding of the cultural relations committee, €2.1 million is being provided for the festivals of Irish culture to take place in Beijing and Shanghai in May and June 2004 and for the incoming festival of Chinese culture in Ireland later in the year.
The Estimates for my Department also include the provision of €3.9 million for the organisation of the cultural programme that will surround the Irish Presidency of the European Union. The forthcoming Irish Presidency will be unique in that the ten accession countries will formally join the Union on 1 May and it is intended to mark this event across Ireland in a special way. It is also the intention to use the period of the Presidency to forge new cultural links with the accession countries.
Next year marks the 100th anniversary of Bloomsday. Last year I appointed a special committee to co-ordinate the many events that will be organised in celebration of that anniversary. An exciting cultural and tourism programme is being developed under the title "ReJoyce Dublin 2004" and it is being promoted internationally. The Estimate includes €900,000 to support the efforts of the committee. The centrepiece of these celebrations will be a major exhibition in the National Library of Ireland, the leading repository in the world of Joycean material, for which an allocation of €1.8 has been provided.
The 2004 allocations will also enable the National Museum of Ireland to proceed with a planned military history exhibition to be held in Collins Barracks in 2005. This exhibition will tell the story of the ordinary Irish soldier at home and abroad from the late 16th century until today.
Also included in the Estimate for my Department is a provision of €3.175 million by way of a first instalment of the Government's committee to the Cork city of culture in 2005.
The value of sport to the nation cannot be over-emphasised. An active, healthy population is the backbone of a stable and secure society. Additionally, all of us take great satisfaction from outstanding performances by Irish sports people in the sporting arenas of the world. The provision of €176 million for sport in 2004, in comparison with the allocation of €17 million in 1997, is indicative of the Government's commitment to sport.
I am particularly pleased that the allocation for the local authority swimming pool scheme has been improved to €15 million in the 2004 Estimates. Under the sports capital programme €267 million has been allocated to 3,500 projects across the State. The combined provisions of €30.75 million in respect of the Irish Sports Council will enable it to continue to support and enhance its wide range of programmes in the coming year.
Following the publication of the Estimates for public services last week, some commentators, particularly Deputy Rabbitte, sought to portray in the most misplaced and negative terms the provision in the Estimates for my Department of funding for Bord na gCon and Horse Racing Ireland. The level of funding proposed in 2004 is based on the provisions of the Horse and Greyhound Racing Act 2001 and is in accordance with legislation.
Horse racing and greyhound racing are major industries that provide significant employment and create wealth for the economy. Direct and indirect employment in horse racing and associated industries amounts to 25,000 people. There are more people employed in the equine sector in County Kildare than in information technology, despite the location of the Intel and Hewlett Packard enterprises in that county. The comparative employment figure for greyhound racing is 6,000 direct full-time jobs and 10,000 indirect and part-time jobs. The breeding and racing of thoroughbreds generates significant economic activity in Ireland, contributing to gross national product. The value of assets employed in breeding and racing is conservatively estimated to be €2.5 billion.
It is incorrect to say that the bloodstock industry is exempt from tax. Breeders and owners are liable for tax in the same way as all other sectors of farming. Profits made by Irish tax residents from trading in bloodstock in Ireland or overseas are liable for taxation here.
One sector of the industry has enjoyed a tax concession since the late 1960s, namely, income from stallion fees. It is the location of the stallions that attracts the mares and the inward investment of overseas owners and breeders, with consequent benefits for rural employment and the balance of payments. The tax concession can be equated to incentives for other industries, such as the 1% manufacturing relief and IDA and Forfás grants, and undoubtedly gives Ireland a competitive edge over international competitors. Thoroughbred breeding is one area where Ireland is a genuine world leader, with only the US state of Kentucky comparable in terms of intensity and economic importance. Despite our relative size, only America and Australia produce more foals annually. We account for 42% of the total EU output of thoroughbreds and more foals are born in Ireland annually than in Britain and France combined.
While the top stallions can be phenomenally successful, the majority of the 382 at stud in Ireland do not succeed and their owners struggle to recover their investment. The growth output of the breeding sector alone is estimated to be worth €180 million per annum, accounting for 4% of total gross agricultural output.
The betting industry also generates substantial economic activity. Off-course betting in 2002 totalled €1.6 billion and total betting on-course amount to €208 million.
It is interesting to note these figures because they show that Deputy Rabbitte is wrong. He does not have to take my word for it. I will quote from an informed contribution on Second Stage of the Horse and Greyhound Racing Bill to be found in the Official Report, 17 May 2001, vol. 536, cols. 863-868. This might finally enlighten Deputy Rabbitte:
There are 30,000 people gainfully employed, either directly or indirectly, by the industry. It is, therefore, a significant contributor to the Exchequer; the benefits permeate through the economy and help to sustain rural villages. I hope everyone gains from the Bill: those who work in the yards, the head lads, grooms and stable boys and stable girls. Sometimes they were not overpaid – let us put it that way – and though they are now looked after by the minimum wage I hope everyone now shares in the prosperity. That is very important.
Increased funding of both industries on a sustained, guaranteed basis, most importantly, for their ongoing development is to be heartily welcomed.
The contribution of horse racing to the State. . . . is particularly important in terms of employment. I concur with the Minister on the significant contribution of horse racing to rural development in particular. It has been a significant alternative industry and will probably assume greater significance because of the alternative enterprise scheme. . . . It is an important source of income for farms both as a principal and supporting enterprise, particularly in my area.
Horse Racing Ireland and Bord na gCon. . . . will receive a sum equivalent to the revenue generated from excise duty in the preceding year, or else £46 million as indexed from the Consumer Price Index. I am glad there is a base and that the bodies will receive whatever sum is greater.
These are the words of a Labour Deputy on 17 May 2001 in this House. Hopefully this has educated Deputy Rabbitte as it is the considered opinion of the man whom he supported for the deputy leadership of the Labour Party last year, Deputy Penrose. However, political connoisseurs and cynics alike will have no difficulty—