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JOINT COMMITTEE ON ARTS, SPORT, TOURISM, COMMUNITY, RURAL AND GAELTACHT AFFAIRS díospóireacht -
Wednesday, 8 Apr 2009

Horse and Greyhound Racing Fund Regulations 2009: Motion.

I welcome the Minister for Arts, Sport and Tourism, Deputy Cullen, and his assistant secretary at the Department, who appeared before the joint committee last week in my absence. I thank Deputy Michael Kennedy for dealing with the matter on that occasion.

Members will recall that the draft regulations to which the Minister referred were a revised version to those formally referred by the Dáil and the Seanad. However, the revised version is not being laid before the Houses and, consequently, had not been referred to the committee. Therefore, the debate which took place, in a sense is procedurally incorrect and we must correct this. We need both to rescind the decision taken in regard to the messages sent to the Dáil and Seanad and the report to both Houses to formally consider the revised regulations laid on 6 April. Members will probably be aware that yesterday the Dáil and Seanad rescinded the original motion referring the draft regulations laid before the House on 23 March to the committee and withdrew the motion and have now referred the regulations laid on 6 April to the committee and consequently we are here today to deal with that issue. I invite the Minister to make a short statement given that the matter was debated here last week and everybody is familiar with the issue.

I refer to our discussions on Thursday last at the meeting of the joint committee. As I mentioned on that occasion, the Government decided on 1 April that the horse and greyhound racing fund should be further reduced by €1.5 million. Therefore, the aggregate limit of the fund will be increased by €63,907,713, the cumulative provision in the fund since 2001. The funding available to the industries in 2009 will be €68,128,000 comprising the balance remaining in the fund of €4,220,287 plus €63,907,713. Members will recall that last week I proposed an amendment to the motion to this effect and it was accepted. However, even though I had been informed that we would be able to do what we did, I have since been advised that this committee did not have the power to amend a draft regulation that had already been laid before the Houses of the Oireachtas. It was necessary therefore to lay a revised regulation before the Houses and this has been done. Two motions were approved by the Houses yesterday, one to rescind the original motion and a further motion to refer the revised regulation to this committee. It is the intention to debate the regulation on Thursday in the Dáil when it comes back from committee. I know Deputy Upton wanted a debate in the House and I am happy to facilitate that. I apologise for any inconvenience, but I had understood that because the figure was not in the regulation, I could change the figure. However, that turns out to be incorrect parliamentary procedure.

I thank the Minister. I will now deal with questions from members.

We debated this matter at length. I thank the Minister for that debate and for agreeing to bring it back into the House. However, in light of yesterday's budget, I am afraid I cannot support it. A number of items have come up in the budget, which when placed against the moneys allocated to the horse and greyhound fund show that allocation is inappropriate. There is no significant reduction in the amount.

Will it be possible for us to table an amendment to this motion in the House tomorrow?

That will be a matter for the Houses.

There is considerable confusion about what we are discussing. When there is such a reduction in money going to sport generally, I understand why people feel that we should not be giving money to the horse racing industry. However, the reality is that it is an industry that provides vital jobs. I believe there are approximately 28,000 direct jobs, 80,000 tourists and billions of euro in revenue to the Exchequer. This is a huge industry.

Let nobody be under any impression that if money was not going to the horse racing industry it would somehow go to sport. Ideally this should come under the remit of the Department of Agriculture, Fisheries and Food or the Department of Enterprise, Trade and Employment. It is not primarily a sport. We are not supporting it because we want to encourage people to bet or even go racing. We are supporting it because it is an industry, without which there would be no trainers, stud farms, veterinary bills or people producing feed. There is a large catering requirement at racecourses and of course the 80,000 tourists who come here every year as well as the showcasing of Ireland that takes place because we are the third biggest exporter of horses. This is a vital industry. If we maintain we are interested in jobs, we need to continue to support it.

Even though we are increasing the size of the fund, the majority of the fund will come from a levy on the industry itself. Some €17 million might be required from the Exchequer — I know it is impossible to tell this early in the year. Even though the betting levy is being increased, because the numbers going racing are reducing it is hard to know how much it will yield. The challenge for us is to ensure that the industry can still be supported. One in eight farmers depends, if not wholly at least partly, on the raising of horses. The challenge for us is to find a way to fund the industry that does not depend on the Exchequer. It comes back to the Minister — he must come up with some method. If the levy can do it, that would be great. However, the reality is that as with everything else, spending on betting is reducing. It is imperative that money is not taken or even seen to be taken from other valid sports in order to support an industry like this. I fully agree that the industry needs to be supported. It would be cutting off our nose to spite our face to withdraw the money at this stage of the year. Next year we must have something that will give certainty to the industry because surviving from year to year is not acceptable. This industry, like any other, needs to know in advance what money will be available to it. It must plan race meets well in advance. It must know what race money will be available and it must invest in race courses to continue to attract the crowds. We must support this measure for this year, but I am putting the Minister on notice that we must find some other method of funding the horse racing industry from an internal levy, however that is devised.

I concur with Deputy Mitchell's remarks about supporting industry and jobs. Yesterday's budget did not provide enough to support jobs, but this is providing that.

There is a public perception that measures such as this support the sport of horse racing. Since last week, I have received numerous e-mails and representations from clubs and organisations complaining that while the sports capital funding for 2009 has been withdrawn the Government continues to support horse racing. This presents a dilemma. I have no difficulty in supporting jobs in the short term but a solution to this dilemma must be found. The answer may be to take horse racing out of sport. Jobs must be supported but other sports must not suffer for that. In 2009, the Government abolished sports capital funding and people need answers to this difficulty.

I supported the motion last week on the understanding that it was a short-term measure to protect jobs for this year and that the fund would be self financing in the long term.

I agree with my colleague with regard to this year but I am unhappy about this grant. Any business could employ 30,000 people if it received a grant from the State. The bloodstock industry is exempt from tax.

It is no longer exempt.

Unless it was changed in the budget?

It was changed in the last budget.

There was a review but I do not think it was changed.

In that case it is time it was changed. I was one of the people who fought very hard to have it changed. Everyone must make a contribution in this economic climate.

What are we doing about offshore betting? We are supporting an industry in which many bookmakers have offices outside the State and do not pay tax in Ireland. Nevertheless, the taxpayer, who is under pressure following yesterday's savage budget, must subsidise people who are not paying tax in the country. How will the Minister deal with that? Offshore betting on Irish racing is very profitable and the Exchequer does not benefit from it. People in the horse racing industry are worried about this development. Some major bookmakers have small shops in Ireland while their main offices are outside the country. Meanwhile, the taxpayer is supporting prize money and other aspects of the industry. I am in favour of creating jobs. I want to see as many people as possible in employment, but everyone must pay a small bit and make a contribution to the State.

I join Deputy Mitchell in supporting the continuation of the fund for this year but I have grave reservations about this kind of money being given to a single sport. Deputy O'Mahony has reminded us that sports capital funding for this year has been withdrawn. Those who benefited from that funding were trying to keep people out of trouble. The programme supported organisations and facilities but has been withdrawn for this year. We cannot provide the necessary money and hard-pressed workers earning between €300 and €400 a week will have to pay €200 or €300 to the Government from next week. They cannot live in this country or pay their mortgages but we are paying this money to a sports organisation, the members of which are already well off.

I made my position clear at the last meeting and supported the proposal but, as Deputy Upton said, things have changed. One of the problems was highlighted by Deputy O'Mahony who said the horse racing industry employed 30,000 people, not counting those employed at various racing festivals such as those at Galway, Punchestown and the Curragh. There are now festivals at Gowran Park, Sligo and Listowel with a major spin off for job creation and tourism.

Horse Racing Ireland is under no illusion as to where it stands. It does not want to be dependent on the State. The industry wants to be funded within the sport and by the people who benefit most from it, namely, the bookmakers, whether they are located onshore or offshore. It is imperative that we allow this to happen immediately. I have supported such a policy since the former Minister and current Ceann Comhairle, Deputy John O'Donoghue, introduced it. Horse racing is an industry rather than a sport. One can be involved in racing as a sport or as an industry and I am involved in both sectors, which gives me wonderful pleasure. The sooner the Taoiseach decides it is an industry attached to the Department of Agriculture, Fisheries and Food, the better.

The current impetus will turn sour if we do not underpin the industry. Horse Racing Ireland, in the form of Mr. Denis Brosnan and Mr. Brian Kavanagh, states we must ensure those who benefit most from the industry put the money back in to ensure its progression. The Minister said a figure of 1% would produce a sum of €100 million. We are only looking for €50 million but the other €50 million would electrify the industry and enable it to expand into places such as Dundalk, creating opportunities for tourism, sport and industry. The focus of horse racing in my area where there are many stud farms is as an industry.

The debate needs to be much wider. The horse racing industry should be within the remit of the Department of Agriculture, Fisheries and Food. Let us nail the myth put about by the newspapers which condemned us for what we did last week. Some 30,000 are employed full time in an indigenous Irish industry which attracts almost 80,000 tourists to the country. Who is driving the agenda? The decision taken by the Department to withdraw the sports capital programme was wrong. I am aware it was used as a slush fund in many instances, which was wrong. However, it should have been allowed to continue because, having been involved in sport all my life, I believe it was a great programme. One only has to look at the figures. The Minister may dismiss me if he likes, but he abandoned a programme he should not have abandoned.

It is not abandoned.

It is gone for this year.

The Minister admitted it to me in the Seanad in an Adjournment debate.

We are here to discuss one issue. We may have an opportunity to discuss the sports capital programme on another occasion.

It is related in the context of funding for sport. What we are doing here is pitting certain sections of sport against others just as the budget did in regard to public sector and private sector workers.

The Senator is doing that.

I am not. I support this industry, and I do not participate in racing. I do not own a horse, nor am I involved in a syndicate although I gamble and attend racing and all types of sporting events. Horse racing is an industry. It should be part of the Department of Agriculture, Fisheries and Food. Allow me to make a fundamental point. The spin-off effect is of immense benefit to our country, in terms of the breeding of dogs and horses, farming, training and so on. We need a wider debate on the funding of sport. If we take this in isolation the optics do not augur well. We should take a holistic approach. Horse racing is no longer the sport of kings. That might apply in the case of some flat racing events, but in terms of national hunt in Ireland, it is not. I will happily support the horse-racing industry and the greyhound industry, but let us put them within the remit of the Department of Agriculture, Fisheries and Food as an industry. It is necessary also to examine the issue of off-course betting, Internet betting and telephone betting. We should invite the bookmakers here for a discussion.

This issue of funding should not be taken in isolation but in the overall context of sport. In terms of the horse-racing industry and the greyhound industry, we need the small regional tracks, which I am happy to support, but we need to have a further debate on the mechanisms of funding, as other speakers have said, because there is a myth abroad that must be nailed.

Before I call Senator Paul Bradford, I recall that when we debated the sports capital programme some time ago I wrote to the Minister on the Senator's behalf. I suggest we await the revised Book of Estimates and the Finance Bill.

There is no good news in that.

It is at that stage that we will get an answer.

In a Seanad Adjournment debate with me, the Minister said there would be no sports capital programme in 2009. If there is €6 million in the fund why is it not being distributed?

It was Senator Buttimer who proposed we have this meeting.

If he finds it is not necessary, perhaps he would advise me of that.

We need to have a real debate on the funding of sport. Mr. John Treacy will be here soon to speak on the Beijing Olympics and the London Olympics in 2012. If we are serious about the development of Irish sport we need to have a real debate. Funding alone will not win medals or improve performances. However, we need to have a debate on the funding of sport at local level.

I have made the request on behalf of the committee.

Go raibh maith agat.

I am delighted to have an opportunity to contribute to this discussion. I am interested to learn that the next item of business on the agenda is a visit from Mr. John Treacy with, presumably, a report on the Beijing Olympics where everybody performed to the best of their ability. At the end of the month, however, Ireland was, sadly, not at the top of the league. There is only one sport or pastime in Ireland in which the Irish are world champions. That is the horse industry. If Cheltenham or Royal Ascot were the Olympics, Ireland would win the majority of gold medals. I am very disappointed that we almost apologise for supporting a sport and industry in which Ireland is the best in the world. There is no other aspect of life in which we are world champions. We are world champions in horse breeding, horse racing and horsemanship; we are the permanent gold medal winners.

I have heard bizarre claims about the funding and taxation of racing and its impact on Irish life. We should nail the first myth on the taxation of the race horse industry. I get very annoyed at the suggestion that people involved in horse racing do not pay tax. I have heard that for years. That is tripe, to put it mildly; every breeder, trainer, jockey and owner in the Irish horse racing industry pays tax. The stallion fee element of the industry was exempt from taxation and a group of people claimed that if this were taxed it would net billions. We have started taxing that sector of the industry and have learned what most reasonable people always knew; the level of tax revenue generated in the area is very low. Some 85% to 90% of every 20 or 30 stallions standing at stud in this country make a loss. That statistic was readily available through the years; a small minority believed there was a hidden fund amounting to billions waiting to be accessed by taxing stallion fees. Stallion fees are being taxed and the returns for the Government have been very modest; we should get real.

The Senator's colleagues are very out of touch.

If Deputy Michael Kennedy wants support he should hold his tongue.

My colleagues are very supportive of this fund. I have views on the funding of sport and I do not feel one sector of sport should be pitted against another. I support the views of my colleagues who stated that this is more than a sport. It is an industry that directly employs 30,000 people and many more in spin-off industries. There has been talk of highfalutin people in high heels at race meetings. I invite my colleagues to attend one of the 100 to 200 point to point race meetings that take place across rural Ireland during the winter from October to March. One will see neither high fashion nor high heels; one will see wellington boots and hobnail boots. I hate the term "ordinary people" but at a point to point meeting one will see the men and women of rural Ireland in their thousands.

This is a sport and industry that needs funding. The people in the racing industry want to change how it is funded and tackle the matter of the levy on offshore betting, an issue my colleagues also wish to address. We should prioritise the latter issue but we cannot afford to shut down a native industry that employs thousands of people. The statistics speak for themselves. This is more than a sport or pastime; it is one of our greatest industries. It would be hugely remiss of us not to protect and support horse racing because within 20 miles of my home probably 1,000 people work with horses; more than in any other industry in my locality.

I do not mean any disrespect to the Minister but it would make sense if responsibility for this industry lay with the Department of Agriculture, Fisheries and Food, where it was for many years, because it is a huge part of rural Ireland.

Senator Bradford has made a powerful case for the industry based on his own environment and personal experience. When I was chairman of Cashel Urban District Council I had the privilege of giving a civic reception to Mr. Vincent O'Brien. I had a long chat with him about why he decided to base himself in Rosegreen, four miles from Cashel. I have seen the results of his work, which employed several hundred people when there was little or no employment in the area.

Senator Buttimer is right that it is no longer just the sport of kings. It is a sport and industry for everybody, and a sustainable industry at that. We live in a competitive world and have seen many of our industries leave for different reasons. Horse racing is an industry that is well anchored here and we are known throughout the world for it. Each time we watch a big race, we almost invariably expect to see an Irish horse win it. In the current global climate, if any other country had these assets at its disposal, it would sustain and protect the industry in every way possible.

I thought the purpose of the committee meeting today was to deal with a technical procedure, because we have all made our cases previously with regard to the industry. We are introducing something that existed prior to the budget. However, it is important now, apart from supporting the measure before us, to send out the right message. The right message is that the horse racing industry deserves our full support. We depend on the industry, not just for the immediate benefits from it but from a tourism point of view. Hundreds of thousands of people come here simply because of the publicity the industry has received internationally. One cannot buy that kind of PR. As well as that, many big stakeholders and very wealthy people have based themselves in Ireland and invested their money in development. I have seen that within ten miles of my home town, beyond the Rosegreen area. We should deal very sensitively with this issue from the public relations point of view.

Funding is not an either-or situation. The sports capital programme may be a discussion for another day, but the investment in the programme has been felt in every parish in the country and there is great appreciation for that. People who received investment funds were enabled to fall back on their own resources following the injection of finance from the State. We should try to keep the two issues separate. If this is a technical procedure, we should approach it in that manner and be seen to be supportive of it.

I do not want to repeat what has been said. Senator Bradford summed up the benefits of the horse racing industry. Senator Buttimer referred to a rather malicious article printed in the press last Sunday. It implied that all members of this committee were fools who did not know what they were about. I suggest the Chairman should address the incorrectness of the report. It did not allude to jobs or the tax from the spin-off industries, which are a major factor. The report was lopsided and implied the Minister was not aware of the facts. It also implied we were fools and named those of us present last week.

This committee and all here agree the horse racing and greyhound businesses are live businesses that employ over 30,000 people and provide many more indirect jobs. We should set the record straight in deference to ourselves and the industry. People who read the report may have believed it was based on fact. It suggested that when politicians appear at the doors they should be asked why they support the horse racing and greyhound industry against other sports. The Chair should endeavour to address the issue.

I did not read the report and have just noted there is a copy in today's post.

Ironically, whoever sent the report did not show courtesy or have the decency to put his or her name to it.

It is now in the public arena. I will have a discussion with the communications unit and we will certainly reply to protect the good name of committee members, if necessary.

I thank the Chairman.

The Minister has a sense of the strength of feeling around the House on this issue. I do not particularly care what appears in the newspapers but the majority know the horse and greyhound industry must be supported. As Senator Bradford said, it is the industry at which we are best; to undermine it would be a folly. Last week, when the Chairman was not present, the Minister gave an undertaking to return to the committee before the summer break with his proposals to bring certainty to the funding of the horse and greyhound industry. Is he hoping to secure good will from on-line bookie companies such as Paddy Power? I am sceptical about getting agreement from on-line bookies operating on an overseas Internet server. In my experience, people tend to pay tax when forced to do so. The industry must be funded by a levy within itself. However that will happen, it must be dealt with before the summer recess. If not, the matter will only fester. The industry cannot be left in a state of uncertainty. Prize money has to be decided well in advance of meetings. Major investment in the industry's infrastructure is required. For example, facilities at the Curragh, the country's showcase, are looking rather tatty. The industry wants to fund itself from within and we must facilitate it. Will the Minister confirm that he will return to the committee with proposals before the summer break?

Since I started the ball rolling on this discussion, I feel obliged to come back in on several points. I stand over what I said at the last meeting. Included in that is my recognition of the number of jobs created and sustained through the horse and greyhound sectors of the industry. I also appreciate its value to the community and society and the sports' knock-on effects. However, major issues arise with the industry's funding and how it is delivered. My issue is with the amount of Exchequer funding made available to the industry. In 2008 it was approximately €40 million, a substantial amount of money. Yesterday, as everyone agrees, we had a harsh budget. I will not list the actions we could and should have taken with different amounts. However, I am opposed to such amounts being put into the industry. If that means I have to call a division to register my opposition, so be it.

I thank the Chairman and committee members for their contributions. Everyone has his or her point of view which must be respected. Senator Bradford made one of the most lucid contributions which showed a deep understanding of the industry. I thank him for that because he probably knows more about the industry than anyone else present. He spoke with knowledge, calmness and great insight, which I acknowledge. I wish others would more often make such a substantive contribution. I respect the Senator for that. He has a deep and specific understanding of the industry.

My second point is that contrary to the misnomers, to suggest there is no money in the sports capital programme is utterly wrong. There is €56 million in the budget for the sports capital fund for 2009, along with all of the other moneys allocated——

The Minister is being disingenuous. He knows this is an old programme which is being paid out. There is no new programme.

There are no new applications in 2009.

If I may interrupt, we will deal with this issue now before we open up a wider debate. We have slotted this into the agenda and we want to deal with it. I just ask——

On a point of information——

There is no such thing.

On a point of order regarding a procedural matter, the Minister in replying to the debate said there was €56 million in the sports capital programme. If there is money in the fund, why is the sports capital programme closed, with no new applications for 2009?

When we have the opportunity to discuss this, we can——

The Minister cannot come here and say one thing when the reality is something else.

We have a right to respond if he is giving information we are not happy with.

Let the Minister clarify the information.

I was clarifying the information. It was stated categorically that there was no money in the sports capital fund this year. That is utterly incorrect.

We said there is no programme.

There is a programme. There will be over 1,000——

It is an old programme which is being paid out.

Over 1,000 new projects that have not yet started will be developed throughout the length and breadth of Ireland this year.

Why did the Minister tell me otherwise during an Adjournment debate in the Seanad?

I wish to draw this to a——

There have been no new applications for 2009.

I respect the Chairman does not want to widen the discussion. However, as of today, there is no new fund open, and there is a very good reason for this. We have funded 7,400 different sporting organisations throughout the country at a cost of €750 million and it is time to review how that money has been spent. Any prudent person with the responsibility for investing so much money would like to know where it has gone and whether we got value for it.

Deputies and Senators from all sides of the Houses have told me that much of the money has been spent very well, although they certainly questioned some of the investments that have been made. I am reviewing the position so that, as I have said publicly, we can go forward with a new scheme that will be targeted to ensure there is proper regional balance with regard to all of the programmes. That is the factual position. In addition, substantially more money is also going into sport.

As a final point, I am fascinated by the sudden move, not just here but externally, to take the horse and greyhound fund back into the Department of Agriculture, Fisheries and Food. It is ironic that when responsibility for the industry was in the Department, agriculture was in the doldrums and received no new investment. It was when it came into the Department of Arts, Sport and Tourism that the massive investment that has now taken place in the industry occurred. Why is this so? It is because it was at last recognised as a major industry that involved a huge element of tourism attraction. We have now developed enormous synergies with the tourism sector by bringing in packages from France, Austria, Italy and Sweden and involving them in sport in this country.

I can but surmise as to the reason there is momentum to get this out of the Department of Arts, Sport and Tourism and for it to be somehow hidden again in the Department of Agriculture, Fisheries and Food, where it will not be in the public domain and we can all carry on with what we do. Members should look at the facts. The greatest time for the Irish horse and greyhound industry has been since it came under the aegis of the Department of Arts, Sport and Tourism. I find it extraordinarily ironic that all of the investment in the greyhound stadiums and horse racing centres in recent years — the new developments, the refurbishments, the explosion of interest and the nurturing of the industry — has occurred since responsibility for it came out of the Department of Agriculture, Fisheries and Food and into the Department of Arts, Sport and Tourism. This happened before I came to the Department.

I acknowledge all of the officials who have been so committed to recognising what colleagues on the committee have said about the importance of this industry to Ireland both nationally and internationally. I put down that marker. Why is it being asked? There is a logical reason. There is a perception that it can be hidden under the radar if it is placed within the remit of the Department of Agriculture, Fisheries and Food and will not be open to the same level of scrutiny as in the Department of Arts, Sport and Tourism.

I thank the Chairman and members of the committee for their courtesy and look forward to the debate in the Dáil tomorrow.

That concludes the debate. I propose that a message be sent to the Clerk of the Dáil and the Clerk of the Seanad. Is that agreed?

I repeat — to be clear — that I propose that a message be sent to the Clerk of the Dáil and the Clerk of the Seanad to the effect that the joint committee has completed its consideration of the motion and notes that provision has been made for a debate in the Dáil tomorrow.

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