I am delighted to debate in the Seanad my legislative proposals for the National Stud Company in the National Stud (Amendment) Bill, 2000, and the state of the thoroughbred horse breeding and racing industries generally. There was a useful debate on the Bill in the Dáil. There was strong cross-party support for the improvements we are proposing in the way in which the stud is expected to operate. It is now a strong and vibrant company and I have every confidence that the growth it has sustained over recent years will continue and its excellent performance in all its fields of activity will be maintained.
In the Dáil, Deputies Dukes, Power and Wall from Kildare took a particular interest in the Bill and no doubt that will be the case with Senators from Kildare. That is not surprising given their proximity to the stud. They recounted some of the local history of the place, the top class stallions that have stood at Tully over the years, the pride the local people take in it and the esteem in which it is held. They also commented favourably on the Japanese Gardens and the new St. Fiachra's Garden and their importance from the point of view of tourism.
Three amendments were made to the Bill on Committee Stage. The main amendment related to the removal of any ministerial role in the decisions to be made in the future on how the proceeds from the sale of any part of the stud land would be used. Essentially, there was full agreement that the stud should be allowed to operate on a commercial basis and the board of the stud company should decide how the revenue will be used. We also agreed to increase the share capital and the limits on borrowing powers from the original proposals of £25 million and £20 million respectively to £30 million in respect of each. I will discuss these in more detail later.
I will now discuss the general state of the equine industry and where it is going. The horse industry has over the past few years gone through a momentous period of significant change. This is true of many industries and is probably caused chiefly by the unprecedented growth in the economy, the increase in disposable income and the radical improvements in the availability and use of leisure time in people's lives coupled with the modernisation of lifestyles.
This change created great opportunities for businesses in the service, leisure and tourism sectors. This is where the breeding, training and racing of horses and greyhounds are most active, and progress and prosperity in these areas have significant benefits for the producers of the basic products, that is, good quality horses and greyhounds. Three State bodies play leading and important roles in these sectors – the National Stud, the Irish Horseracing Authority and Bord na gCon. All three have, through the efforts of commercially-minded and business orientated chairmen and boards, not only seized the opportunities that were there but, with vision, pushed these sectors beyond all apparent barriers to place them at the cutting edge for the future.
The Government has shown its strong commitment to these sectors by the provision of an appropriate and much increased level of investment funding for the State bodies concerned. However, that was not all. Critically, and at important stages over the past few years, the Minister for Finance, Deputy McCreevy, and I have encouraged much needed change in the underlying organisational and financial structures underpinning these sectors. As a consequence of relatively recent developments, I intend to introduce in the near future new legislation governing the horseracing industry, probably the most significant ever in this area. This will represent the final phase in the restructuring of the way in which the horseracing industry is organised and funded, giving it a secure and permanent footing for the long-term future.
The first initiative in this direction was the establishment of the IHA in 1994. The work it has done over the past six years represents a major step in the development of our horseracing industry. The results are obvious – increased prize money, better facilities at our racecourses and improved customer services, resulting in strong growth in the key economic indicators of the health of the business. The current level of attendances are 1.3 million for the horseracing industry and 750,000 for the greyhound industry, proof that improved facilities in these leisure industries attract people, especially young people. There is a total of approximately £150 million turnover in on-course bookmaker and tote betting on horseracing and up to £50 million on greyhound racing.
However, continued and sustained development is essential to maintain and accelerate that growth. There is now full industry agreement on the way forward. I will put detailed proposals to Government shortly on the establishment of a new unified structure under a body to be called Horse Racing Ireland or HRI to replace the IHA and take over certain functions from the Turf Club. It is planned that this will facilitate securing for Irish racing the revenue coming from tax on off-course betting which currently goes to the Exchequer. This will in turn provide the level of investment required to stimulate the real growth potential of this important industry. I expect off-course betting in bookmakers' shops on the streets of our towns and cities to be close to £1 billion. For a relatively small country, that is a fair amount of punting.