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Joint Committee on Agriculture, Food and the Marine díospóireacht -
Wednesday, 18 Nov 2015

Horse and Greyhound Racing Fund Regulations 2015: Motion

I welcome the Minister for Agriculture, Food and the Marine, Deputy Simon Coveney, and his officials. The purpose of the meeting is to discuss a motion referred to the joint committee by the Dáil and the Seanad regarding the horse and greyhound racing fund regulations 2015. Members will have received a briefing note on the motion.

I apologise, but I must leave the meeting. Before it was arranged, I had made a commitment to attend another meeting. I ask the Vice Chairman, Deputy Pat Deering, to chair the proceedings. I am sure members will be as co-operative as they normally are.

Deputy Pat Deering took the Chair.

I invite the Minister for Agriculture, Food and the Marine to make his contribution.

I think most people know what the formalities are in respect of the horse and greyhound racing fund. I will be happy to answer questions from members following my presentation.

The most recent estimates available suggest the horse and greyhound racing industries underpin over 24,000 jobs and stimulate approximately €1.6 billion in economic output. The industries receive financial support from the State through the horse and greyhound racing fund under section 12 of the Horse and Greyhound Racing Act 2001. The Department of Agriculture, Food and the Marine makes payments from the fund to Horse Racing Ireland and Bord na gCon. Since 2001 over €963 million has been paid from the fund to the horse and greyhound racing industries in accordance with the provisions of the 2001 Act. The cumulative upper limit on payments from the fund provided under the relevant regulations has, therefor, been reached.

The Exchequer funding provided from the fund is pivotal to the survival and continued development of the horse and greyhound racing industries. In order to give effect to the provisions of budget 2016, the cumulative upper limit must be increased by regulation. This happens each year. The Estimates for my Department, as passed by both Houses as part of budget 2016, include an allocation of €74 million for the horse and greyhound racing fund. This will be distributed in accordance with section 12(6) of the 2001 Act, with 80% or €59.2 million going to Horse Racing Ireland and 20% or €14.8 million going to Bord na gCon. In order to allow my Department to provide the moneys allocated in budget 2016, it is necessary to comply with the technical requirement under section 12(13) of the Horse and Greyhound Racing Act for the cumulative limit on the amount payable from the horse and greyhound racing fund to be increased by €74 million. This is being achieved by means of the regulations that have been submitted to the committee today. The aggregate limit on the horse and greyhound racing fund was increased in the same manner in 2004, 2009, 2010, 2011, 2012, 2013 and 2014.

It is estimated that the Irish bloodstock industry provides 14,000 jobs and contributes almost €1.1 billion to the economy. In 2014 the industry achieved exports of over €220 million to 34 countries. It is estimated that it accounts for up to 80,000 tourists to Ireland each year, who are among the more than 1 million people who attend horse race meetings in this country each year. Ireland holds a pre-eminent position in the thoroughbred racing world as the biggest producer of thoroughbred foals in Europe and the fourth largest producer in the world. Approximately 40% of the EU output of thoroughbreds and 11% of total worldwide output is produced in Ireland. The horse and greyhound racing fund is a critical part of the dynamic that has shaped the industry. It has helped Ireland to become a world centre of excellence for horse racing and allowed Horse Racing Ireland to undertake a capital investment programme that has underpinned growth in the sector. The horse racing industry satisfies all of the critical requirements for success in terms of employment and foreign direct investment. It is the type of export-orientated industry we need. It is not an exaggeration to say it has probably done more than any other to enhance Ireland's international reputation in recent times.

The greyhound racing sector is also an important driver of employment and economic activity in rural and urban areas. Bord na gCon estimates that the greyhound industry employs over 10,300 people and contributes €500 million in economic output to local economies around tracks which have a wide geographic spread. Bord na gCon reports that since 2002 over 10 million people have attended greyhound racing meetings. The board employs over 700 people, including full-time and part-time staff, and has an annual turnover of approximately €40 million. The funds generated from greyhound racing are reinvested in the industry through contributions to prize money and grants to various bodies involved in the greyhound racing and breeding sector, as well as the promotion of greyhound welfare and the regulation of the industry. The challenge for the board is to encourage the development of a commercial greyhound racing and breeding industry built on a customer-focused, high quality entertainment product that meets the highest international standards of regulation. The funding provided for the greyhound racing sector helps to sustain the long-standing tradition of the industry as part of the social fabric of the country. I refer, in particular, to rural parts of the country. This funding underpins economic activity in parts of the country that are, in many instances, less affluent and contributes significantly to the improved facilities available at greyhound tracks around Ireland. Greyhound racing is an activity that is inextricably linked with the farming community. While it is, undoubtedly, part of the fabric of rural Ireland, it also enjoys a strong urban support base.

The Government's overall objective is to ensure the horse and greyhound racing industries achieve their maximum potential and contribute to economic and social development. Governments of all persuasions have acknowledged the importance of the industries and supported them through legislation and policy initiatives over a long period. Without this support, these vital industries would simply not survive. The advent of new technologies and business models has challenged the Government to re-evaluate the funding mechanisms for the industry. As part of its overall commitment to the industry, the Government has addressed through legislation the anomaly that meant remote and online betting operators were outside the tax net. On 14 April last my colleague, the Minister for Finance, signed a commencement order for the Betting (Amendment) Act 2015. The Act came into force on 15 April, with some aspects of the new regulatory regime being commenced on 1 August. The Act brings betting exchanges and Internet and mobile betting providers within the scope of the existing licensing regime and extends the existing 1% turnover tax on land-based bookmakers’ activities to online and mobile bookmakers. The Act also means the 15% commission tax on betting exchanges which was initially tabled in 2011 is finally being implemented. These measures are expected to increase revenues from betting tax by €25 million in a full year.

Horse Racing Ireland and Bord na gCon have operated through challenging economic conditions for several years. I have had the activities and operation of both bodies reviewed in that period. In that context, members will be aware that the Committee Stage debate on the Horse Racing Ireland Bill 2015 will take place the week after next. The Bill introduces a range of improvements in governance and accountability arrangements, many of which derive from recommendations made by Indecon following its review of the sector. That Bill has been through a comprehensive process of pre-legislative scrutiny at this committee. I know that the process involved consultations with a wide range of stakeholders and that officials from my Department provided considerable assistance for the committee in its deliberations. The Bill will strengthen the racing industry, enable it to deal with the existing challenges and, most importantly, maximise its future potential. I am grateful for the committee’s input into the process. Indecon was commissioned to draw up a report, A Review of Certain Matters Relating to Bord na gCon, which assesses the suitability of the legal, governance and regulatory framework supporting the greyhound industry and identifies opportunities to maximise its commercial income. My colleague, the Minister of State, Deputy Tom Hayes, recently appeared before the committee to discuss aspects of the report. He outlined the Government's commitment to the implementation of its recommendations. My Department is preparing the heads of a Bill to respond to some of Indecon's recommendations. I expect the committee to have a significant role to play through the pre-legislative scrutiny process, as was the case with the horse racing legislation.

I do not wish to understate the challenges facing Horse Racing Ireland and Bord na gCon as they work to grow and develop the horse and greyhound racing industries in an extremely competitive international market. I am confident that the industries have tremendous growth potential, with sporting, leisure, tourism and cultural appeal across a wide demographic nationally and internationally. The Government is working hard to put the kind of statutory and policy framework in place that will allow this growth to take place. I appreciate the contribution the members of the committee have made to the debate on the future of these critically important industries. I am confident that we share a common objective of maximising the contribution of the sectors to the economy and those working in the industries, many of whom are absolutely passionate about both sectors. None of this can happen without the critically important contribution made by the horse and greyhound fund. Copies of the draft regulations have been circulated to members of the committee.

Section 12(13) of the Horse and Horse and Greyhound Racing Act 2001 provides that a draft of these regulations be laid before both Houses of the Oireachtas and a resolution approving the draft be passed by each House before the regulations are made by the Minister. Accordingly, I ask members for their support so as to ensure that Horse Racing Ireland and Bord na gCon receive the funding provided for in budget 2016 and that the very important role of these industries, and the economic activity generated by them, are sustained into the future. I commend this regulation to the committee and I look forward to discussing any matters arising.

I will be brief. A persistent case has been made by the industry that the betting tax should be increased now that the loophole of online betting has been eliminated and that this should be used to develop what should be one of our major industries based on a fantastic natural resource in terms of both land and people. What is the Minister’s view on increasing the betting duty? I know it is a matter for the Minister for Finance, but no doubt he will consult with the Minister for Agriculture, Food and the Marine. Has the Minister made a case that even though it does not follow directly, they are related? The Minister himself mentioned the betting tax in his speech. If the betting tax were raised, we would have more money to develop the industry.

I presume the Minister has a unit within his Department that deals with the equine industry. How many staff work in the unit? Is it a stand-alone unit? How does it compare with similar sections such as the beef or sheep section in terms of staff? Does the Minister have plans to develop the unit so that we realise the full economic contribution from horses?

I understand at a European level the horse is not considered as an agricultural animal. It is amazing that tobacco, cotton and wool, which one cannot eat either, are designated as agricultural pursuits. Would it be an advantage to us if horse-related activity were designated as an agricultural activity at European level?

The Minister is going to give the greyhound industry a lot of money and he is asking us to vote for it. Is he satisfied, pending legislation, that it has carried out the necessary reforms into its procedures short of legislation before he gives them so much money for the next year? It is important that we get an audit of where the industry is at the moment in terms of practices before we vote it even more money. I suggest that before we vote the money through the Minister might come back to us on the issue with a report on the changes that have been brought to bear within the industry that did not require legislation.

The Irish Harness Racing Association was before the committee recently. It said it was getting less than co-operation from HRI, to which we are also going to vote a lot of money. We want to talk to HRI about its attitude to harness racing, which is quite a big sport in other places. My understanding is that harness racing in this country does not get any money from the horse and greyhound racing fund. We should defer the matter until we get an opportunity to talk to HRI to hear its side of the story, because it is wrong to make a pre-emptive decision. On the other hand, in view of the very serious issues raised with us by the Irish Harness Racing Association, I do not think we should vote the funding through until we get a full explanation as to why it holds the attitude it is alleged to hold on harness racing. I specifically say “allegedly” because we have not heard HRI’s side of the story. I hope the Minister will be agreeable to putting the decision back for a few weeks to allow us to talk to HRI and to get its explanation for its attitude to harness racing, the reason it has refused permission for harness racing to take place, and why it does not get any money from the fund.

On a point of clarification, a decision on the regulation must be reported back by 24 November. I do not know whether it is possible to defer the decision for a number of weeks as Deputy Ó Cuív suggested. Perhaps the Minister would address the issue when he responds.

I will deal with the matter.

Since I came to this House in 2002, I have fully recognised the contribution of both horse racing and greyhound racing to rural communities, particularly greyhound racing, which is very prominent in my area. I have always argued that the share of the pot for greyhound racing was significantly smaller than the allocation to Horse Racing Ireland. A sum of €963,990,000 – almost €1 billion - has been allocated since 2001, which is a huge amount of money. Despite misgivings at times, I have always supported it because of the number of jobs involved and the fund’s contribution to the social fabric of communities. I have been involved for the past 12 months with the Irish Harness Racing Association to get a facility to hold an event. Eventually, an event was held in Dundalk racecourse. I speculate that it came about due to the intervention of the Minister. I hope that is the case. If what I have heard is accurate, the treatment of harness racing by Horse Racing Ireland and the influence it has brought to bear on privately owned racetracks around the country to prevent harness racing events from taking place is a disgrace, to put it mildly.

I have had sight of a letter outlining a number of reasons for HRI's opposition to harness racing events. One is a legitimate reason, namely, that it had to be satisfied regarding the health and safety of the animals, particularly in terms of disease control. Another reason referred to the fact that harness racing is in competition with horse racing. There is not one cent involved. I understand an application was made for a small amount of funding prior to the event in Dundalk but the request was not acceded to. I note that a figure of €52.2 million was allocated to Horse Racing Ireland. I do not have any problem with the greyhound sector because I know how valuable it is. Not one cent is being made available for harness racing. Many would argue that it is a question of status. I hope that is not the case. I support the position adopted by Deputy Ó Cuív. I cannot vote for the regulation before us. I have never voted against it on any previous occasion but I cannot vote for it until I have had the opportunity to question Horse Racing Ireland and to challenge it on its intervention to prevent harness racing from taking place. To do so would be to accept inequality, and I will not go down that road.

Deputy Ferris said he could not support this. Does he consider harness racing to be under HRI? Harness racing could be under sport horses, for which there is a totally different fund. We are very proud of our sport horses but have lost a lot of our world status for breeding them, so I ask the Minister to continue to pay attention to that.

I welcome this allocation of funds because in Carlow-Kilkenny we have some of the most successful trainers in Ireland, especially in National Hunt. It is not about headline tracks like the Curragh or Leopardstown but the point-to-points that take place in every parish around Ireland during the winter and the jobs that the horse and greyhound industries create in rural Ireland. The €59.2 million for HRI provides 14,000 jobs and the fund of €14.8 million for Bord na gCon creates 10,000 jobs. Indecon has done a report on both amounts of money, but has there ever been a value-for-money audit by the Department on these funds to determine whether we are getting value for the investment? Harness racing has a case, but it comes under a completely different fund as HRI is for thoroughbred horses.

I welcome the allocation and I know how important it is. I will not expand on the views I put forward on Second Stage of the Horse Racing Ireland (Amendment) Bill, as they were very sincerely held. The level of support I have received for some of the things I said suggests that HRI needs to come down to earth. It is getting a lot of money from the State, but how much money did it raise on its own? It is all State money, and that is why I made the pitch for the small tracks and everything else. I pointed out the 90% versus 30% equation, which is there in black and white. The Irish Harness Racing Association was before the committee and made a very compelling case, but it would be a huge input. I agree with Senator O'Neill that the association deals with sport horses, but HRI had an input into it. Is there an elitism involved here? Point-to-points are essential across rural Ireland and I have three of them dotted around my area.

The HRI wants to get its hands on it. We see that in the Bill. We want accountability. The Minister has worked hard on this, but I want to make sure the dead hand of bureaucracy does not stymie an activity that is carried out by volunteers and has been very successful across the country. That is what I see at Castletown Geoghegan, Doory or anywhere else I go. The €59.2 million is a great amount of money and the Minster has succeeded, in very difficult times, in securing it. I know the fight HRI put up for it, but let us ask HRI, under the sport horses head, for a small initial fund for the Irish Harness Racing Association so that it is recognised for its efforts. It could become a money spinner, as is the case in France, where it is big business.

I got so tied up with two or three points in the last meeting that I forgot to make a very important point. Again, it is on behalf of the small person. There are several powerful people across Ireland who can do what they like and come in and out of the country at the drop of a hat, but I am thinking of the little people with two or three mares. We are one of the few EU countries with a foal levy, and there may be reasons for it, but it is constructed on the advertised value of the stallion. More often than not, if a stallion is advertised at €10,000 or €15,000, this is negotiated down to €5,000, but HRI then states that the levy is on the advertised value. It forces the small person to pay a percentage which does not reflect the reality of the deal. What republic would force its people to do that? I understand it is for simplicity of administration of the thoroughbred market, but it is not fair at a time when there is very little for the man or woman with two or three mares. They are trying to get the best breeding, but most have animals worth less than €10,000, and only those at the top have sires between €75,000 and €100,000.

I remind the Deputy that this is about the horse and greyhound racing fund regulations.

This is important. It is part of the levy-----

We are not going to rehash-----

I am here to make a point, and if the Vice Chairman wants to expel me from the committee for making points on behalf of small people he should do so.

I have no intention of doing that.

Do so. I have had enough of this. It seems that one part of the Government is trying to protect certain sectors.

I am reminding members of what we are here to do.

I made a special effort to get here this morning to do this.

We all did that, Deputy. If Deputy Penrose fell out of bed on the wrong side it is not my fault.

How dare the Vice Chairman say I fell out of bed on the wrong side. I came here to argue a point. That is insulting.

We are here to discuss a certain matter, and the same applies to all Deputies.

This is going to be part of the Bill and I want to know about it. Information is important. The Minister is here and he is the boss. Is it intended to go back to market value in the case of the foal levy? Is it fair that the lower the amount, the more the person has to pay? The percentage decreases from over 1% down to 0.9%. A number of people have contacted me on the matter and I am only making the point so that I can support the regulation. I will only do that on condition that the Minister make a commitment to the Irish Harness Racing Association.

I will concentrate on the statutory instrument before us today. I congratulate the Minister on securing another increase for the horse and greyhound fund, which is absolutely crucial. It is an investment not in a sport but in an industry which employs an awful lot of people around the country. I recognise the role of the Minister for Finance, Deputy Michael Noonan, and note that the increase is being paid for by an increase in income from betting expenditure, with the extension of the betting duty to online and remote betting and to the exchanges. In time, I would like the betting rate of 1% to increase, because the racing, breeding and greyhound industry never wanted to be in a position in which it was dependent on Exchequer funding, which happened because of the failed policies in the past and, in particular, an inexplicable reduction in the rate of the betting tax at a time when revenue was increasing dramatically. The cut from 2% to 1% has never been justified. It was fine when the country was awash with money and the Exchequer could pay directly into the industry, but the industry always knew it would struggle to compete with hospital wards and new schools when tight times came, and that is what happened to this industry. It was not good for the industry that the horse and greyhound fund was cut during the recession but, over the past four years and five budgets, there has been a real attempt to protect the industry and it has been acknowledged that the previous cuts had a catastrophic impact.

The increase flagged last year and committed to this year has allowed the industry to begin to invest again in key infrastructure. I welcome the local infrastructural developments that are to be undertaken in my constituency, including the redevelopment of the Curragh racecourse, the home of the blue riband of flat racing. If we want to retain the key position we hold worldwide, it is crucial that the Curragh racecourse be redeveloped. It is an exciting public private project, which incudes investment by both private interests and the State, through Horse Racing Ireland. I understand the Turf Club will also play an important role in this project. As I said on Second Stage, I was struck, on the day of the unveiling of the plans for the Curragh racecourse, to hear the spokesperson on behalf of the private investors single out the commitment of the Government to this industry in the past couple of budgets as the reason for their confidence in investing in the Curragh and local industry. It is important to mention that. Lest I am accused of looking after the big man only, I am also excited about the plans to develop the racecourses at Punchestown and Naas. The latter is excellent for National Hunt racing. This €2.5 million expansion plan is hugely important for the courses and the industry. As many people are employed in the horse racing, horse breeding and greyhound industries in Kildare as are employed by Intel. This is key economic activity in rural areas where there are no alternatives. This industry is every bit as crucial to the small man as it is to the big man.

In regard to the greyhound industry employing 10,000 people, I have got to know the industry a little better during the past year or so through my involvement in part-owning, through a syndicate, a dog. This is an activity from which I have obtained great fun and I am impressed by the value one can get from it. From evidence given to the committee, however, I am aware of the concerns of stakeholders in respect of issues relating to the industry. I have also read the Indecon report. I look forward to working with the Minister of State, Deputy Hayes, as he seeks, by way of implementation of the Indecon recommendations, to improve the structures into the future.

I, too, am concerned about the division within the industry from the stakeholders point of view, about which we have heard from different representatives. There are many different representative groups in this area. If owners and breeders in the racing industry do not get themselves organised, there will always be conflict. It is important the eight or nine different organisations in this area work together. I wish to put on record that I am opposed to any deferral today of a decision on this matter. This is too important. There are too many jobs on the line. This is a key industry. Side issues, such as harness racing and so on, can be dealt with on another day. I do not think we should be playing politics with this issue today.

I will be brief. I thank the Minister for attending. I welcome the increase in the fund. On the elitist conversation, I was at Goffs this morning and on Monday morning. It is no more elitist than Billy the Bear. On Monday, we sold a foal for my parents, who are in their 90s, for €4,500. The man who has worked for us for 30 years sold a National Hunt horse that won a bumper that he had built up with a local man in point-to-points for €140,000. That is like a lottery win for him. The fun and camaraderie around that is great. Returning to Goffs, the people there are not elitist. They are ordinary people from Carlow, Kilkenny, Tipperary, Cork, Wexford, Limerick, Clare, Kerry, Mullingar, Meath, Laois and Galway. That is where all my friends come from and they are not elitist. As the Minister said it is not an exaggeration to say that this industry has probably done more than any other to enhance Ireland's reputation in recent times. I admit there are a few individuals who happen to be geniuses and who have made us the most famous country in the world in which to breed racehorses but there are also many ordinary people like me involved. We are supporting rural Ireland.

I take the point regarding the excellent presentation by the Irish Harness Racing Association but we need to hear the response to that from the thoroughbred industry and from Horse Racing Ireland. The tillage, dairy and beef sectors are very different. Harness racing is about as far away from horse racing as one can imagine. It is difficult to explain that. They do not belong in the same conversation.

I am interested in hearing further from the Minister about the betting tax. I would like to see the industry pay for itself such that it does not have to dip into Exchequer funds. I would also welcome an update from the Minister on the Irish Equine Centre and how we can make certain it is continuously funded so that we become best in class in the world. I welcome the Bill. The Minister will be aware that I am a great fan of An Bord Bia. I know he wants to see HRI as a value-for-money organisation that is transparent and world class in terms of operation. Even though those of us here have confidence in how the vast amounts of money being provided in this area will be spent, I welcome the Minister's plans and vision for the future of HRI.

I, too, will be brief. I thank the Minister for attending. I welcome this important Bill. In the west, from where I come, we are not that big into racing but there is a racetrack in Sligo which attracts crowds of people.

There are several busy racetracks along the west coast.

It is a hugely important industry in the context of job creation, tourism promotion and so on. I agree with my colleagues that the case made by the Irish Harness Racing Association is compelling and worthy of consideration. A number of harness racers are racing on roadways. Some provision, in terms of a track, should be made for them, such that they no longer have to race on the roadways, which is very dangerous.

There is a harness racing track in Portmarnock which, to my knowledge, is not financially viable.

I apologise but I must leave at this point for a vote in the Seanad.

Perhaps I could respond quickly to some of the Senators' questions before they leave. On harness racing, I have much sympathy for the case made by the Irish Harness Racing Association. I have met its representatives and I did ask that harness racers be facilitated in Dundalk and they were. The Irish Harness Racing Association is an affiliate of Horse Sport Ireland rather than Horse Racing Ireland. The demands on funding in the sports horse sector are huge yet it gets only a tiny percentage of the funding provided to the racing sector. We provided €200,000 last year for the Jumping in the City initiative, which was one of the biggest new initiatives in the sports horse sector in terms of show jumping which was awarded the innovation of the year in the sports industry awards. That €200,000 was a huge amount of extra funding for that sector. I am happy to have the conversation around the harness racing sector. I want to help it and get horses off the public roads and onto appropriate tracks. We need properly regulated and safe areas where competitive events can be held. I know the industry wants that too. That is what they have asked for and that is what we have to try to facilitate. I am not going to have a allow a situation whereby a gun will be held to the head of Horse Racing Ireland in terms of it not being granted any money until such time as it agrees to provide a certain amount of that funding to the harness racing sector. I think that would be hugely unfair to the sports horse sector.

It is also unfair for it to apply pressure to have a request for a racetrack refused. That is the nub of the problem.

We need to understand what lies behind this. The racing industry is a hugely valuable one. Racetracks run important events. There needs to be a conversation between the harness sector and horse racing sector so that each understands that tracks can be used without damage being caused to the turf or the surface. I have asked Horse Racing Ireland to have that conversation with the harness sector. Access to the Dundalk track has been provided since I made that request. I think that things are changing for the better - and quite quickly - for the harness race sector. We have never had a race meet at a track like Dundalk. It happened this year. I want to encourage that more and I will do so. It would be unfair for me to force HRI to allocate funds to the harness sector when there are lots of competing demands in the sports and racing sectors for available resources. Members should by all means invite Horse Racing Ireland and Horse Sport Ireland to appear before the committee to discuss funding and how we support and regulate the harness racing sector. I will be very supportive of that, as will my Department.

It is an issue that should not hold up the legislation, on foot of which expenditure of millions of euro is planned. It needs to be spent if we are to achieve a series of results in the horse racing industry. People can make their own decisions on that.

This has nothing to do with elitism. I am happy to have this conversation. I have had it and we want more interaction between Horse Sport Ireland, Horse Racing Ireland and the Irish Harness Racing Association. I am not happy to see races take place on public roads. There have been accidents on public roads and many associated welfare issues have arisen. We need a proper, regulated, controlled sector. To be fair, that is what the Irish Harness Racing Association wants to create. We will help it to do that. This matter may be linked to the issue in hand but it should not hold up the vote today. I appeal to members not to delay it.

On elitism, I am not quite sure what people are suggesting. To suggest we have some kind of elitist policy on racing in Ireland would be very unfair. If one asks the small trainers what they want to be prioritised through funding, they all say they want more prize money. That is what has been provided in recent years. If one asks dog breeders and trainers what they want, the vast majority say they want more prize money. They have said this to me. Everybody dreams of winning the big prize. In point-to-point races, flat racing or jump racing, we need good facilities and decent prize money. We need a supportive budget and proper transparency in terms of how money is spent and raised, including, for example, through the foal levy.

I take Deputy Penrose's point on that levy. There is an ongoing debate on how it should be raised. I am happy to discuss it with the Deputy. The means of raising the revenue will not be prescribed in the legislation. We are trying to have a fair foal levy that is easy to implement. We want a reasonable chunk of money coming in so we can fund the equine centre. I have allocated more money for the centre next year because it needs more money. This allocation is not from the foal levy revenue. I made it very clear to Horse Racing Ireland that I want to see more prioritisation of the equine centre. The centre is doing a phenomenal job but it is in a facility that is like a 1980s primary school. There is technology in the corridors of a very old building. The researchers are doing a really good job there. We need to support them and upgrade the facilities. We are going to do so. Next door, there is a fantastic facility that is being funded by the private sector through voluntary funds. The equine centre has a really important role to play. Some of its money needs to come from a foal levy. We need to have a fair way of allocating the money. Many people have suggested the levy should be raised based on the value of the foal at a later stage. However, many foals are not sold so that would not be possible. This conversation is not as simple as some people might believe. I will happily have the conversation and we will talk to Horse Racing Ireland about it.

For the first time, we will have stable staff recommended for the board of Horse Racing Ireland, yet people are suggesting we are somehow elitist. We are trying to change racing in Ireland to ensure everybody has a say, whether they are associated with small racecourses as opposed to big ones or whether they are stable staff by comparison with the most wealthy horse owners in the country. All will be in the same board of Horse Racing Ireland.

Nobody is changing anything in terms of how point-to-point meetings operate. The local hunt clubs and the National Hunt committee will decide where and when they should be held. Well over €1 million of public money is going towards point-to-point racing. It is horse racing and it comes under the Bill. The only change we are making is that when registering a hunter, one must go through a central registry office operated by Horse Racing Ireland. The money that would have gone to the Turf Club or the Irish National Hunt committee automatically goes back to it. We are trying to create a central portal through which money comes in and out so we will have a clear understanding of what is being spent and raised. That is not unreasonable in these times given the need for transparency.

On the points Deputy Ferris has been making on the greyhound industry, I am impatient in my desire for reform. Indecon points to a series of changes that need to take place. That process of change is well under way. The Minister of State, Deputy Hayes, was here recently, for four or five hours, to discuss the detail on the greyhound industry, which I believe he understands very well. He is involved in it and knows many people involved. We are changing the greyhound sector in terms of board appointments and financing. There are some debt problems associated with Bord na gCon of which, I believe, people are aware. Some difficult decisions have to be taken on this to try to get Bord na gCon and the racing industry on a stable platform again. We want to see an increase in prize money. If one does not increase prize money in the greyhound industry, there will be no excitement about and growth in the breeding and owning of dogs. Therefore, we have signalled to Bord na gCon that a consequence of the increased funding this year should be an increase in prize money to try to bring positivity back to the sector. There has been much division within the greyhound sector and we are trying to heal that and move forward while learning lessons.

I have answered most of the questions on the Irish Harness Racing Association and Dundalk. On the questions raised by Deputy Ó Cuív on betting tax, we should increase betting tax. I have argued that point. To be fair to the Minister for Finance, Deputy Noonan, he told me we should concentrate on getting the structure right first so we can actually start generating a revenue stream from online betting. Many other countries have really struggled with this. This was a much more difficult thing to do than some believe. Getting online betting platforms and exchanges that are international to agree to giving to the State 1% of their turnover from bets coming from Ireland and managing that required considerable co-operation with the industry. The Minister for Finance was very sensible in saying we should get the structure working first and only when it is working - it is only this year that it is working for the first time - should we consider the rates. That is the point we are now at. If I am lucky enough to be the Minister with responsibility for this area next year, I will make no apologies for advocating an increase in the rate. I do not believe there should be a dramatic jump because the industry needs to adjust but I would like to see the betting levies increased for both online and offline bookmakers. I do not want to start giving exact figures on that but those who know my views on this area know the kinds of figures I would like to see.

Let me respond to the question on how many staff in my Department work in the equine industry. If I were asked the same question on beef or dairy farming, I would probably give the same answer. We have expertise in the Department that applies across multiple sectors whether it is a question of breeding programmes, genomics, welfare or various schemes. There is knowledge in different areas and it applies to different sectors at different times. For example, we have done a huge amount of work on horse welfare over recent years. It is the welfare element of our Department that has been working on that but it also works on cattle, sheep and dogs in terms of the welfare legislation. This means that owners of horses now have to have their animals microchipped and must have passports for them. They must have an equine-registered premises or they are breaking the law and their animals can be seized. I find it difficult to give the Deputy an exact answer to the question, although it is perfectly reasonable because the equine industry is a big priority area. As it happens, the person in the Department in charge of advising me on the thoroughbred sector and horses is also in charge of beef and dairy advice at senior Assistant Secretary level. I am sure he has been before the committee on a number of occasions.

On the agricultural classification of horses, the breeding of horses is deemed agriculture. One can use breeding horses to increase one's stocking rate to qualify for certain schemes. If one has a horse that is not being used for breeding, it may not be used for this purpose. That is the distinction.

I know how strongly people feel about harness racing. As I want to be helpful, I will certainly ask HRI to be helpful and come before the committee to talk about it. However, I also think the committee should hear from Horse Sport Ireland which is an affiliate of Horse Racing Ireland. When it hears about the funding demands of Horse Sport Ireland, it might realise there are a lot of competing demands for funding in the equine sector. It is not simply about racing, which is to receive nearly €60 million next year in the context of the thoroughbred sector; harness racing should also receive a slice of the funding. The sports horse sector is worth €800 million and involves about 200,000 people when one takes account of all of the volunteers involved. Horse Sport Ireland is also asking for money and a slice of the pie.

How much money does Horse Sport Ireland receive?

It receives about €5 million, half of which it gets from us and the other half from the Department of Transport, Tourism and Sport. The Deputy should not forget that there are multiple disciplines, including ponies, eventing, showjumping and dressage. There are other demands to be met, including Connemara ponies in the west to putting Olympic teams together. We have been increasing funding for the sports horse sector which deserves a very significant increase, but I cannot do all of it in my Department. To be fair to the Department of Transport, Tourism and Sport, it cannot do it overnight either. I would, however, like to see the sector receive a very significant increase in funding because, as in the case of racing, it is an industry as well as a sport. Let us do one thing at a time. This is a fund for the racing industry for thoroughbred horses and the greyhound sector. I would really like to get the committee's approval in order that we can move ahead and start to plan for the expenditure next year.

On harness racing, representatives of the Irish Harness Racing Association appeared before the joint committee last week and the issue forms part of our work schedule for the next few weeks. I suggest to members that we put it on the agenda for discussion next week and invite the other relevant bodies such as Horse Sport Ireland and HRI to discuss the matter further and tease it out to see where we should go.

I agree with and welcome a lot of what the Minister said, particularly about looking at a foal levy, etc. I agree with him completely that the horse industry is a fantastic one. As members of the committee know, I have been concerned to ensure all horses are looked at, including those in urban areas, and that account be taken of the Traveller community's affinity with horses.

I welcome what the Minister said about the betting tax which in the long term is the key to solving many of the problems. I would like to see all activities funded from the one fund. If more money was raised through the betting tax, some of it should go towards dealing with the issue of gambling, to which I have an aversion. While I might want to raise the betting tax, I have a particular aversion to gambling because I know of the damage it can do. However, it is going to happen. The issue has been the subject of ongoing discussions at the committee to which we invite all participants in the industry. It was great to hear from county managers and representatives of the ISPCA on one day, with representatives of the thoroughbred industry, in order that we looked at the very high and very low ends of the industry in a seamless way. In the future the one fund should be used to fund the development of the industry, from top to bottom, including the export sector. That is, as the Minister rightly pointed out, a matter for another day and it will require dramatic changes in how we conduct our business.

I still have a problem in the case of harness racing. There are two issues, the first of which is that it is looking for a small amount of money, while the second is access to tracks. On that very narrow issue, I would like us to invite representatives of HRI to give us its side of the story. I doubt if any of the money being allocated to HRI will be spent this side of Christmas. Perhaps the Minister might confirm that this is the case. In other words, I presume this is the fund to be spent next year and that, therefore, there is no overriding imperative preventing us from following procedure. On the narrow issue of harness racing, rather than the wider issue of reform of the industry, about which the Minister has spoken eloquently, in which he has shown a great interest and about which he has shown great flexibility, I would prefer the vote to be deferred until we have heard from HRI. When we have heard from it, I imagine it would not take more than ten minutes to agree to it.

If HRI is using its influence to prevent the Irish Harness Racing Association from holding an event, it concerns the use of public money being given to it. Since 2001 almost €1 billion has been given to it and Bord na gCon. HRI has prevented the Irish Harness Racing Association from holding an event and I find it very difficult to stand over this.

For the first time it has also facilitated the holding of an event on one of the top tracks.

That was because of the Minister's intervention. I had raised the matter with him previously.

We will intervene again, but-----

Hang on one second. The point I am making is that the Minister is giving a ball of money to HRI which has abused its position in preventing harness racing from taking place. It has effectively-----

I understand the issue involved, but to be fair to HRI, the Irish Harness Racing Association is not affiliated to it. It is an affiliate of Horse Sport Ireland.

It tried to become an affiliate.

That is fine, but what is happening for the first time is a conversation between the Irish Harness Racing Association and HRI. The conversation got off to a slow start, but it is now developing and we should give it an opportunity to develop further, rather than put HRI under pressure and say we will not give it any money until it does X, Y and Z for the harness racing industry. I can speak to HRI. The chairman rang me about this issue and asked whether I wanted it to look at it with an open mind. He said that if that was the case, it would do so. To be fair, that is what happened in Dundalk. The job of HRI is to protect the horse racing industry, primarily the thoroughbred sector. Of course, it would be cautious about another sport using venues it was funding. We are in the early stages of that conversation, but I think HRI will look at the issue with an open mind to see how it can be helpful in developing the sector, but I do not think the way to do it is to force the matter by withholding money.

The suggestion I made was simple. It involved hearing HRI's side of the story on the issue of access to tracks. We could then make our decision. That is not unreasonable. Is there any overriding reason we cannot wait one week?

I might not be able to attend next week.

An order has been passed to the effect that we must report back by next Tuesday, 24 November. We are tied to that time.

We could meet next Tuesday morning to deal with the matter.

We have no idea whether representatives of HRI would be available to come.

If HRI is as determined as we are to give it the money, its representatives will be here.

I am sorry, but this is not about HRI giving it money because we must ensure the funding allocated for the equine industry is fair and proportionate. We have a fund to fund the horse racing industry which at present does not incorporate harness racing. Harness racing is included in the sports horse sector.

Up until it held the event in Dundalk, it was blocked, despite several requests from the Irish Harness Racing Association to hold an event there. The fact is that the board of management in Dundalk was prepared to permit the event to be held, but HRI intervened to stop it.

We changed that.

No, the Minister changed it - just once.

Yes, and I am giving a commitment that I will speak to HRI about harness racing, and I will ask it to have an open mind and to be supportive, but I will not direct it to give money for the moment. I have not even seen the harness racing industry's application for funding. There are many other demands for funding in the equine sector. I am not saying "Yes" or "No" to the harness racing sector. All I am saying is we are at the start of a process in trying to regularise harness racing in Ireland, which is an issue from a welfare point of view as much as from a sporting point of view, and we all know this. I have said very bluntly to the people in the sector, some of whom come from my county and they are great people, that we want to try to create what has been created in countries such as France, which has a proper regulated industry where horses and yards are inspected with a licensing program and many other measures to ensure this is not just a loose arrangement whereby people turn up and race at big venues without having the proper infrastructure behind it. I want to work with the industry to do this. The Department will do this and HRI will be helpful, but it is not its job to manage it unless we change the legislation in this regard.

There is no mention of harness racing in the new horse racing legislation we will introduce. People are trying to remove the mention of point-to-points from the legislation because they do not want them to be considered as horse racing, even though they want to take more than €1 million through Horse Racing Ireland each year for point-to-points. All I am doing is asking for a proper discussion on the issue. I will be helpful, as will the Department, but I not want to create a mini-crisis in the horse and greyhound fund around this issue. If we delay approval of this because we must solve a problem with the harness racing industry, we will create an unnecessary focus linked to the fund, which is a separate issue.

The committee has had a very good record and has been very accommodating over the past five years on all these matters. Representatives of the harness racing industry came before the committee last week and we can try our best to bring representatives from Horse Sport Ireland and HRI before the committee as soon as possible as part of our work schedule to tease out this issue.

I will make sure they come here.

Obviously there are issues to be teased out. The Minister is being co-operative and supportive on the matter. We could get bogged down, speaking over and back for the next half an hour and going nowhere, so we need to tease it out. The only way to do this is to bring the representatives before the committee to discuss it as soon as possible. I believe everyone is in agreement on this.

Let us do it next Tuesday morning and then we can pass this.

With respect, I have Cabinet meetings on Tuesday mornings and I have some big things coming up.

We can do it in the afternoon.

There is no guarantee today, Wednesday, 18 November, that any of these people will be available next Tuesday morning.

This is the last time I will intervene, because I do not want to take up too much of the members' time. I am as anxious as other people to develop a proper, regulated and supported harness racing industry in Ireland, but this cannot be done in a couple of hours by the committee next week, with approval of the horse and greyhound fund hanging over us. The committee needs to bring before it Horse Racing Ireland, Horse Sport Ireland and the Department with regard to welfare issues, and then, working with me because I will support it, come up with a model to put in place a proper regulatory framework, which may need legislation, whether primary or secondary, to bed in and protect the industry. Let us look then at how we fund it, whether through Horse Sport Ireland or Horse Racing Ireland or another mechanism. One could argue that either the Department with responsibility for sport or the Department of Agriculture, Food and the Marine should fund it. Holding to ransom the thoroughbred racing industry is unfair.

I have already said the committee is examining the horse industry from top to bottom, and I suggested it in the first place. This is ongoing, and I understand the intention is to produce a report before the election, depending on when it is, in the same way as we have produced many good reports under the chairmanship of Deputy Andrew Doyle. This process is ongoing and it is the big scene issue. We are doing it in a methodical and systematic way. However, this issue has arisen in the meantime. I am not interested in Horse Sport Ireland coming before the committee.

But it is affiliated to Horse Sport Ireland.

That is not the issue. I am interested in Horse Racing Ireland coming before the committee because it refused permission to use its tracks. I would like to hear the reason for this refusal. The tracks do not belong to Horse Sport Ireland so it is irrelevant because it had no part in the refusal. Before I am asked to vote on this, I would like to hear what it has to say. I counted yesterday that the best case scenario is we have 16 weeks until the election is over, and that is if the Dáil goes until 11 March, which I think it might.

I have a Cabinet meeting next Tuesday and I will then take oral parliamentary questions on defence, so I will not be able to be here next Tuesday, and I will not rush this.

For the technicality of the business, a Minister of State could come before the committee. It will take no more than ten or 15 minutes. It is not the Minister to whom we want to speak but Horse Racing Ireland. If we are satisfied, we will all agree and we will all vote it through and there will be no division. It would not take five minutes for the Minister of State. The Department has five Ministers of State so that when the Minister is tied up with other business, he can send in one of them to do business on his behalf. It is perfectly possible. I suggest that rather than have a division, which would be very unusual for this committee, we defer a decision on this to next Tuesday.

I do not understand why the Deputy is linking the issue with the horse and greyhound fund. The Deputy has a right to question Horse Racing Ireland on this issue, although arguably it would say it does not have any responsibility for harness racing.

The issue is that it has responsibility for refusing use of the track.

It has responsibility for regulating and managing racing on tracks.

The back of Galway racetrack could be used for a carnival, because it is perfectly suitable for festivals and concerts, but if HRI refused this I would have serious questions and state it is an underutilised utility.

HRI does not have the power to refuse the use of tracks it does not own, but it may well have been asked for advice. We should have a more honest discussion about this. Many people are trying to get their heads around what harness racing as an industry might look like in Ireland. We are at the early stages of this conversation. We need to reassure people rather than trying to bully them into something. The greyhound industry has nothing at all to do with this, although one could argue harness racing could be held at greyhound tracks. I do not know. I do not know the technicalities of the size of the track. This is a sector and industry we need to move from streets and beaches into proper, regulated and managed facilities. We need to do this over time. I do not think we should delay what is a separate ask, namely, the horse and greyhound fund, before we do so. I hope we do not have a vote today, but if we must have a vote on this, I must give the industry the certainty.

I do not see how these issues are connected. We are here today to pass a very important increase in funding to the industry. Let us deal with any other issues aside, as the committee always has done, and invite people to come before it. I do not see the link. I came here today to pass this and I would like us to make a decision on it today.

I second exactly what Deputy Heydon has said. The issues are not connected and we have got into a long conversation. We all agree we want to have good meaningful debate about harness racing and, as the Minister said, it is in its early stages. I am not quite sure why are we sitting here playing ping-pong and holding the meeting to ransom.

With no disrespect, the Dáil will not pass this until Tuesday.

I do not want this to get personal, with people saying we are playing ping-pong and holding the meeting to ransom. We are not. Every year since I became a member of the committee I have voted €1 billion to Horse Racing Ireland and the greyhound board. I have serious reservations about this because people are sleeping on the streets, people are hungry and there are children in the State with disabilities.

That is why I am challenging this today. The track in Dundalk was offering the facility to harness racing and Horse Racing Ireland deliberately interfered, stopped it and threatened to pull funding and its meetings from that track if it went down that road. If the Minister is prepared to accept that, that is fine. I am not.

That has nothing to do with the funding of the overall industry.

With respect, we did not accept that and we changed it.

I brought it to the Minister's attention.

And I dealt with it.

The Minister dealt with it - one event.

I dealt with it and subsequently had a conversation with the chair of Horse Racing Ireland about it. We are dealing with it and will deal with it more comprehensively in the Bill, but it is a separate issue from the funding of the industry. That is the only point I am making.

I will allow one last point from Deputy Ó Cuív. We have been over and back time and again.

I fully respect that the Minister has engaged, as is his right and obligation as a Minister. This committee's right, separate from the Minister, is also to engage. Two Deputies are suggesting that because Horse Racing Ireland is getting this money, before we vote this money through, we as a committee - nothing to do with the Minister - invite representatives of Horse Racing Ireland to appear before the committee on Tuesday morning to explain their attitude to us - not to the Minister - on why it took the Minister to change their minds. In the afternoon as part of our meeting, if the Minister of State attends, it will take only five minutes because our debate will not be with the Minister or the Minister of State.

We know where the Minister stands and we congratulate him on that. This will be taken as a motion without debate in the Dáil on Tuesday afternoon. There is no technical problem with this. I do not know why we have wasted so much time this morning when all the committee needs to do is invite representatives of Horse Racing Ireland to appear before the committee on Tuesday morning, have our chat with them and then, in the afternoon, the Minister of State attends, we bless the thing in five minutes and we move on.

We also need to hear from Horse Sport Ireland. It is not-----

That is not the issue.

It is part of the process.

If the Vice Chairman wants to bring in Horse Sport Ireland, I will not object.

We could pick a number of issues on which we could question Horse Racing Ireland. Deputy Penrose might have questions on Kilbeggan racecourse. Deputy Heydon might have question on point-to-point racing. Senator Mary Ann O'Brien might have issues on marketing and so on. Horse Racing Ireland is accountable to the Oireachtas. We are not giving it the money; we are giving the industry the money through Horse Racing Ireland. It has a responsibility to account for that. It has a responsibility to come in here and answer questions on how it spends it.

Could I suggest-----

I am wrapping up now.

We are proposing to delay its funding model until it answers questions on other issues. I thank that is inappropriate.

Could I suggest that we go into private session?

Deputy Ó Cuív has already made a proposal.

I have, but I am suggesting that we discuss that in a private session among members of the committee.

We have to get past this. If it needs to go to a vote, so be it.

I have made a proposal that we go into private session to discuss it.

Is that agreed? Agreed. We will go into private session for five minutes.

Five minutes at the most.

The joint committee went into private session 12.54 p.m. and resumed in public session at 1.02 p.m.

Is it agreed that the joint committee recommends there should be no further debate on the motion by Dáil Éireann or Seanad Éireann? Agreed. That concludes our consideration of the motion.

I propose that a report on the proceedings of the meeting be laid before both Houses of the Oireachtas. Is that agreed? Agreed.

And that correspondence will be sent along the lines of my proposal and that members get a copy of it.

That has been agreed. I thank the Minister and his officials for attending today.

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