I move:
That Seanad Éireann approves the following Regulations in draft:
Horse and Greyhound Racing Fund Regulations 2023,
copies of which were laid in draft form before Seanad Éireann on 18th October, 2023.
Horse and Greyhound Racing Fund Regulations 2023: Motion
I thank Members for facilitating this debate. Ensuring that the horse and greyhound racing industries achieve their maximum potential, and in so doing, contribute to economic and social development over a wide geographic distribution of our country, is an important aspect of Government policy. The valuable contribution to a balanced regional economy made by both the horse and greyhound industries is well-recognised. It is estimated that the thoroughbred industry has an annual economic impact of €2.46 billion, with direct and indirect employment of 30,000 people, and the greyhound sector benefits an estimated 10,000 people economically as well. Government funding, in addition to supporting these key industries, presents an excellent opportunity to yield a high return for its investment, leading to a flow of income through many levels of the economy, thereby providing widespread benefits for our society. The sectors are also crucial in driving a geographically balanced economy throughout our country. The importance of these industries has been acknowledged by successive Governments and they are supported through legislation and policy initiatives. The world-class reputation for excellence in horse racing, greyhound racing and breeding that Ireland enjoys has been enabled by the support provided through Government public funds.
The horse and greyhound racing 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. Payments are made from the fund to Horse Racing Ireland, HRI, and Rásaíocht Con Éireann, RCÉ. In the period from 2001 to date, a total of €1.64 billion has been paid from the fund to the horse and greyhound racing industries in accordance with the provisions of the Act. The cumulative upper limit on payments from the fund, provided for under the relevant regulations, has been reached. Exchequer support provided from the fund is crucial to the survival and continued development of the horse and greyhound racing industries. In order to give effect to the provisions of budget 2024, this cumulative upper limit must be increased by regulation. The Estimates for my Department, passed by both Houses of the Oireachtas as part of budget 2024, include an allocation of €95 million for the Horse and Greyhound Racing Fund. This will be distributed in accordance with section 12(6) of the Act, with 80% going to HRI and 20% to Rásaíocht Con Éireann. In order to allow my Department to provide the moneys allocated in budget 2024, it is necessary to comply with the technical requirement under section 12(13) of the Horse and Greyhound Racing Act 2001, to increase the cumulative limit on the amount payable from the Horse and Greyhound Racing Fund by €95 million, bringing it to €1.735 billion. This is achieved by way of the regulations submitted to this House today. The aggregate limit on the Horse and Greyhound Racing Fund has been increased in this manner in 2004 and in the years 2009 to 2022, inclusive.
On the horse racing industry, according to the Deloitte 2023 report, it is estimated that the thoroughbred industry has an annual economic impact amounting to €2.46 billion and supports direct and indirect jobs of some 30,000 people. The total value of Irish-foaled exports sold at public auction last year amounted to over €293 million. Horse racing generates a significant return to the rural economy in Ireland and a positive international profile for our country. Behind all the facts and figures are the thousands of people who, directly and indirectly, make the Irish racing and breeding industry what it is. Statistics released by Horse Racing Ireland for horse racing and breeding in Ireland for the first six months of this year point to a continued resilience in the industry. Many figures compare favourably with the first six months of 2019, the last full year before the Covid-19 pandemic. As proven this year to date, Irish owners, trainers, jockeys and horses are setting standards globally, and their exceptional achievements and enduring influence underscore Ireland’s international prominence in this sector. The Irish equine breeding and racing industry is extremely competitive globally, despite other major racing nations having much larger populations and economies. The incredible passion and commitment to excellence displayed by everyone in the sector, from yard staff to jockeys and owners, allows us to consistently punch above our weight.
The importance of a strong welfare and integrity foundation to this highly successful industry is crucial and this is well-recognised throughout the industry. We continue to work with HRI, the Irish Horseracing Regulatory Board, IHRB, and other relevant stakeholders to ensure the highest standards of integrity and welfare are maintained. In that regard, in November 2021, the Oireachtas Joint Committee on Agriculture, Food and the Marine published a report on horse racing in Ireland. At the Committee’s request, an international equine anti-doping expert, Dr. Craig Suann, was commissioned to conduct an independent review of the IHRB’s anti-doping programme. That review concluded that our programme does: “at least match international best practice in most respects and has made significant advances in recent years”.
The EU-UK Brexit agreement reached in December 2020, which included the Northern Ireland protocol, and the more recent Windsor Framework, were welcome. However, the facility to move horses freely, without veterinary certification, between Ireland and Britain, under an agreement known as the tripartite agreement, unfortunately no longer applies as a result of Brexit. This has added cost and a significant administrative burden to such movements.
On the greyhound industry, as highlighted in the 2021 Power report, the industry, both directly and indirectly, supports over 4,000 full-time and part-time jobs in the economy. In addition, there are over 6,000 active greyhound owners. The total number of people deriving economic benefit from the sector is estimated at over 10,000.
The funding from the Horse and Greyhound Racing Fund to Rásaíocht Con Éireann is important for this sector. There is a particular focus within that funding on the welfare and well-being of animals and on the integrity of the industry. It is a condition of the funding that this continues to be a focus.
I welcome the Minister and I second the motion. It is necessary at the outset that I would declare my interest in the sector. As is well known and has been put on the record previously: I am a farmer who owns horses; I am a director of Kilbeggan Racecourse, one of the smallest racetracks in the country; and I am a former chairperson of same.
The horse and greyhound racing industries have a special place in Irish life and a fundamental position within Irish sport. They are crucial for our economy, intrinsic to our identities and landmarks in our social and cultural heritage. There is an undeniable passion and enthusiasm for these sports across the country. An important pillar of Government policy is to ensure that the horse and greyhound racing industries achieve their maximum potential and in doing so contribute to economic and social development over a wide geographical area. More broadly, the Irish equine breeding and racing industry is extremely competitive internationally.
Given the wide geographical dispersal of these two industries, they are important to the achievement of more balanced regional economic growth. In this context the considerable contribution these industries make to rural economic activity and employment must be acknowledged. Government funding presents an excellent opportunity to yield a high return for its investment, leading to a flow of income through the rural economy, thereby providing widespread benefits for our society. The provision of Exchequer funding has helped Ireland to become a world centre of excellence for horse racing, greyhound racing and breeding. For those reasons I welcome and support the funding.
I will give some further information that we discussed. As the Cathaoirleach Gníomhach and the House are aware, this fund was brought to the Oireachtas joint committee last week. It was the subject of widespread and open discussion and a lot of issues were raised. It received the full approval of the committee by the end of the deliberations. I am conscious of having made statements on this in the committee less than a week ago and then coming here to say the same thing but they are two different forums so it is not repetitive. The example I gave in the committee that I would be familiar with and aware of is as follows. There is debate about these two sports but to me they are industries as much as sports, and maybe even more industries than sports. There has been debate about the special treatment these sports get through this funding, as opposed to other sporting bodies or sectors.
I compliment the Minister and welcome the advancements and improvements that have been made in horse and dog welfare in recent years. As a small racetrack, Kilbeggan Racecourse received mandatory instruction on the developments and improvements we had to make to meet the demands of horse and animal welfare.
Although we are a small organisation in a rural area, we do not qualify for sports capital funding or any other funding for these developments. If we do not do them, our licence will be withdrawn and we will not be able to hold races. We have no choice in the matter. A large portion of the funding we are discussing today is filtered through by HRI to the smaller tracks in the form of grant aid, similar to what other organisations receive through sports capital funding, for us to complete these projects. The CCTV cameras that were installed at every track were entirely funded by HRI. That is just one example of where this money is being spent and how important it is to the racing industry, as I would call it, as opposed to sport. It highlights how difficult it would be for the industry to survive without this funding.
I wish to highlight an aspect of horse racing that is seldom mentioned on occasions such as this, and that is that we are an all-Ireland body. Horse Racing Ireland and horse racing, not unlike the IRFU, are pioneers in that regard. We hear a lot of discourse about people's aspirations in respect of the entire island. This is a prime example of a shared island. This funding plays no small part in the promotion of Downpatrick and Down Royal racecourses and promoting an all-Ireland industry. It is important for that point to be made.
I will not rehash all the figures to which the Minister referred with regard to employment and economic return but the vital point that needs to be made and cannot be stressed enough in these situations is where this money is being spent and where the benefits of this money are most felt, namely, in the rural heartlands of Ireland. These are areas that will never have investment from a multinational or another industry coming in. There are racehorse owners and trainers but there are also the people who supply them with food and fuel and who meet their transport needs. A large number of people in rural Ireland benefit from the racehorse industry in particular, but also the greyhound industry. It can be supplementary to other means or methods of farming. If a farmer can sell hay to a horse trainer, that is a bonus to supplement and complement income from other farming practices. Without those added bonuses and extra income, things would be a hell of a lot worse off, for farmers in particular, in many rural parishes.
There are a couple of issues that come up for debate every year when it comes to funding for the horse racing sector. The first is improvements to the national equine centre and the projections for same, and the second is the provision of a second all-weather track for Tipperary. Both those projects will be large structural investments that may require funding over and above the amount of money we are discussing today. I ask the Minister to give us a progress report on those projects from his perspective.
The Minister is very welcome to the House. I support the motion. I am contributing to this debate on behalf of my colleague, Senator Lombard, who sends his apologies. The horse racing and greyhound racing industries are very important to Ireland. I am from County Galway, which is blessed with two fine facilities in Galway city, namely, the Galway Greyhound Stadium in conjunction with Connacht Rugby, which have exciting plans for a co-development, and Ballybrit, which is approaching its 150th year. Obviously, they have a continued role in terms of reinvesting in the facilities and improving the atmosphere in that regard. The Galway Races are synonymous with Galway. The summer festival in particular has a significant impact on the city and county in terms of the atmosphere and the number of punters who come in, many of whom have an interest in horse racing but more of whom attend for the atmosphere, craic and festivities. It is an all-inclusive family occasion, with different activities designated for each day of the festival. Of course, the prize money is important in term of attracting the best racehorses to compete. I acknowledge that.
I welcome the investment of some €96 million, with an 80:20 split between horse racing and greyhound racing, and the increase that has been provided for the coming year of some €76 million in total for the horse racing industry, as announced in the budget. As the Minister of State, Deputy Heydon, stated on the announcement of the budget, it reaffirms the Government's commitment to the racing and breeding industry. The equine sector is now covered by TAMS measures for the first time. That step is very welcome as most breeders have only one or two mares and are also involved in other areas of farming. I welcome that as well.
The horse racing industry supports some 30,000 direct and indirect jobs. It caters for 1.2 million racing attendees and there was approximately €538 million in bloodstock sales by Irish vendors last year. Horse Racing Ireland commissioned Deloitte to carry out analysis into the social and economic impact of the Irish thoroughbred breeding and racing this year. Of the €2.46 billion spend, approximately half was generated directly by the industry through breeders, owners and racecourses and the direct employment of trainers, stable staff, jockeys, racecourse staff and racing administrators. It is a significant industry that is important in the context of employment throughout the country, particularly in rural areas, as Senator Daly stated. The report notes that for every €1 of Government funding last year, the industry contributed €35 to the economy. The chief executive of Horse Racing Ireland stated the funding is vital to support the sector. The stimulus it receives from the Government funding is essential.
I acknowledge the report compiled by consultant economist Jim Power and commissioned by the greyhound racing industry. It shows the industry made a net contribution to the economy of some €132 million in 2019 and supported more than 4,000 full-time and part-time jobs. The investment assists that industry as well, which is important in many parts of Ireland.
One of the preconditions of any of this funding relates to having the highest levels of animal welfare for horses and greyhounds, not just those that are in training but also those that have retired. A significant effort has been made, particularly in the greyhound sector of late, to ensure the provision of care and foster care centres, the expansion of an inspection programme for greyhound establishments, the operation of a greyhound injury support scheme and the commissioning of the Rásaíocht Con Éireann traceability system, as the Minister outlined. I acknowledge that work and the participation of the industry, together with the Department and the Minister, to ensure the highest possible standards of welfare. That must be a precondition of all funding that comes from the Minister's Department to these two important industries.
As I stated, these industries have a footprint across Ireland and, indeed, a global footprint. Horse racing is synonymous with Ireland. Racing here has a positive reputation worldwide. Some of the best breeders and bloodstock lines come from this country. It is important to acknowledge that. We need continued investment by the Government, the Department and the State to ensure we have the best facilities and can attract crowds to their local racing track, whether it be in Galway, Ballinrobe, Roscommon or anywhere else in the country. It is a great day out. It is a family occasion with a great atmosphere, especially if the weather is helpful, although one cannot account for that. As I stated, the Galway Races are an important part of the Galway tourism offering and in the context of the hospitality industry and bed nights in the city and county. I acknowledge and welcome that. I fully support these regulations.
I move amendment No. 5:
To insert the following after “That Seanad Éireann”:
“notes that:
- while it is acknowledged that the horse and greyhound racing sectors do not qualify for sports capital funding, they are unique in Irish sport in that they are supported by the State through their own ring-fenced statutory fund;
- that payments into the Fund have increased from €54 million in 2014 up to the €95 million proposed for 2024, an increase of 76% in a decade, with the proposed payment for 2024 an increase of a further €4 million over 2023;
- there is a question as to the continuing appropriateness of the indexation formula that is intended to provide a floor for Exchequer payments into the Fund, linked to receipts from excise duty on off-course betting;
- while up to 2009 the statutory indexation formula was followed, the Minister for Finance has confirmed that the formula was abandoned in 2009, without any enabling change in the Act, and that the approach since then has been for a unilateral decision by Government on the amount to be provided to the Fund in each year;
- a significant amount of the Fund is used for prizes, which seems to benefit those who are most successful, and no independent economic or social impact analysis has been carried out to determine the best use of this resource;
- although in the intervening years there have been reports of serious animal welfare concerns in both sectors, there is a lack of clear statutory conditionality that would make any State financial support conditional on rigorous animal welfare criteria being satisfied, nor are any conditions related to workers’ rights in the sector attached to the funding;
- believes therefore that the funding model under section 12 of the Horse and Greyhound Racing Act 2001 is in urgent need of review and replacement, and calls on the Minister for Agriculture, Food and the Marine to carry out such a full and independent review of the Fund, including in particular with recommendations on:
- how best to support these sectors, those involved in it, and rural communities,
- measures needed to ensure the highest standards of animal welfare are implemented and complied with,
- how the rights of workers in the sector can be improved and an employment regulation order introduced to set minimum rates of pay and conditions,
- whether and how funding for these sectors and other sports should be aligned,
to be laid before both Houses within six months, with a view to amending legislation being in place well before the anticipated date of any further presentation of draft regulations under this section for the approval of the Houses,”.
I second the amendment.
The Labour Party has tabled amendments to the motion. I urge Members to consider whether they can support those amendments. We need to look at how the system of funding of greyhound and horse racing is regulated.
The horse and greyhound industries are supported by the State through ring-fenced statutory funding, and are among the only sports where this happens. The horse racing industry receives financial support from the State through the horse and racing fund. The payments into the fund have increased from €54 million in 2014 to €95 million proposed for 2024. That is a 76% increase in a decade. As we note in our amendments, a significant amount of this fund is used for prizes, some of which benefit the more successful people within those industries. It is interesting that the Minister said that it is actually not support but that this is an industry. I would struggle to find any other industry that has had as consistent support as these two. The prizes tend to go to the more successful people, so close to €50 million in tax-free prizes goes to some of the richest people in Ireland, not all of whom pay tax here. I do not agree that this is the best use of this fund.
Over the past number of years, there have been reports of serious animal welfare concerns in both sectors and there is a clear lack of statutory conditionality that would make any State financial support conditional on rigorous animal welfare criteria being satisfied, nor are there any conditions related to workers' rights in this Act or attached to the funding. We must have measures to ensure the highest standards of animal welfare are implemented and complied with and we must have this tied into the regulations and funding.
The greyhound and horse racing industry monetises animal suffering. I do not need to go into some of the ways that animals in this industry are being treated. We justify the killing of an innocent dog because it cannot continue to make profit for those who profit off it. Some 38 greyhounds are killed each month in this industry for overbreeding, and we also export greyhounds. We need to fix this.
I urge the Minister to take on board the amendments, or the sentiments behind them, we have tabled every year for the industry. We in the Labour Party emphasise that the Horse and Greyhound Racing Act is in urgent need of review and replacement. It has been in operation for 22 years and we urge the Minister to carry out a full independent review of the fund alongside it. We ask the Minister to have a look at how the industry is funded and determine if this is the best use of the funds to support the sector.
This amendment also has a workers' rights element. We recognise the industry is still strong, albeit declining in some communities. When we talk about the numbers employed, we also include employees such as part-time and temporary workers, which hides the fact that there are much lower numbers of workers in employment generated from this fund than otherwise. We want the Minister to accept the amendment and look at how this fund is distributed and how the rights of workers in this sector can be improved.
As it has been noted, this fund comes from a betting levy, but the revenue is only allocated to horse and greyhound industries. The distribution of this funding towards other sports areas needs to be considered. Sports such as boxing and football and other sports that are operational within inner city and urban communities look on with envy when they see how this fund is allocated every year, and the increase is 76%. We have continually noted that the funds from the betting levy only go to the horse and greyhound industries and there are many other sports that could be in need of funding from that levy.
I urge Members to support the amendment that we in the Labour Party have tabled. Motions around this fund arrive in the Oireachtas every year and we see huge increases going to both the horse and greyhound industries year on year. That is deplorable. We need to see a proper review of this funding as well as the funding extended to other sports and conditionality on animal welfare and workers' rights attached.
I will use my time to raise a number of concerns I have around the greyhound racing industry. The first one is the 80:20 split in funds. It does not make any sense whatsoever that there are two organisations, completely independent of each other, and one could send in the best business plan in the world while the other could scribble some notes on the back of one-pager and they would both receive the same funding because they are linked in an 80:20 split. I cannot understand how we can tolerate that use of public money. In both businesses plans, neither impacts on whether they get the money or not because they are both linked to each other fundamentally. I note that the industry itself stated it has no problem with the decoupling of the 80:20 split, so I do not understand where the resistance is coming from. Each industry - if they are as good as we hear they are from their proponents - should have no problem applying on the merit of their own business plan and not relying on this coupling of the 80:20 split.
Each year, I have raised the findings of the Preferred Results report from 2017, which clearly stated that the greyhound industry is no longer an industry whose primary purposes is racing but rather one that has a primary focus on breeding.
When should we expect to see the new five-year strategic plan that I believe KPMG is doing? We know the Preferred Results one was buried and a second report came out afterwards that was more favourable to the industry. I believe it is KPMG that is carrying out the new five-year strategic plan. When are we likely to see that? I think we were told it would be coming out in the coming months. It is now almost December and the last plan only covered 2018 to 2022.
In July 2022, the Irish Examiner reported that the greyhound racing industry was refusing to reveal the details of the performance of its sole remaining stadium in Dublin as regards attendance and gate receipts. In July of this year, the bailed-out Youghal greyhound track attracted an average of just three fans per meeting. Will the strategic plan be transparent about how successful these racetracks are? Will we get to see oversight of those figures? If they are getting such a large amount of money from the public, the public deserves to see the attendance figures for the racetracks.
Other news reports have also highlighted the number of complimentary tickets given out, which is a large part of attendance. It was interesting that both Horse Racing Ireland and Rásaíocht Con Éireann both sent invites to committee members a week ahead of the discussion at committee. One was to a black-tie event in the round room of the Mansion House, with drinks and food provided. The other one was to a winter gala with greyhound racing. I do not think that it is appropriate, to be honest, to be sending invites to all-expenses-paid events ahead of a discussion on a fund at a committee and ahead of a discussion on the approval of funding.
I hope that the report, when it comes out, will cover the issue of overbreeding. It is more of an acute problem now because we also have the issue of the tsunami of unwanted dogs that has a knock-on impact on the ability of the shelters across this country to take in both retired and failed racing greyhounds. They are inundated with people getting rid of dogs for one reason or other, whether it is the cost of living or the housing crisis. They have a waiting list. Last year, I raised the point that it was concerning that the Irish Greyhound Owners and Breeders Federation was advising its members not to give dogs to welfare organisations that have an anti-racing status. That is very concerning. Surely, we should get the dogs rehomed and support whatever shelter is prepared, or has the capacity, to take them, given the capacity issues we have at the moment in dog rescues.
The final point I wish to raise is the issue of surgical artificial insemination. I would like the Minister to give a commitment today to this House that the introduction, if it is forthcoming, of the ban on surgical artificial insemination, which is banned in Britain for a number of years now, will include greyhounds. I wish to hear that commitment. The joint Oireachtas committee supports this position across parties. The committee listed it as one of its recommendations in its report on issues impacting dog welfare. The committee was told by a veterinarian that even in sterile conditions, surgical artificial insemination carries risks and is a highly invasive procedure. I would like to get a commitment that there will be no exclusion of greyhounds to surgical artificial insemination. Greyhounds are dogs and they feel the same pain as any other dog. They suffer the same risks when it comes to surgery and therefore deserve to be protected in the same manner.
I thank Members for their contributions. Senator Daly mentioned the Tipperary all-weather racetrack, on which Horse Racing Ireland continues to engage in the planning process.
We have had engagements with it about the capital plans and the funding aspect. I believe the planning matters are with An Bord Pleanála and are awaited. The Department is engaging with it about the business case for the track too, which will continue. Likewise, there is no doubt that we need to replace the Irish Equine Centre with a new centre that will meet the needs of our industry. That work will continue. I met the industry recently with regard to that.
Senator Boylan raised the strategic plan for Rásaíocht Con Éireann and its publication. A new CEO was recently appointed to Rásaíocht Con Éireann. I wish him well. There has been engagement on the back of that with the Department and Rásaíocht Con Éireann with a view to getting that finalised. Hopefully we will see progress on that in the near future.
I thank Senators for the contributions. I know there are a number of amendments. There is always the opportunity, which I know is taken up regularly, through the Committee on Agriculture, Food and the Marine, to engage with Rásaíocht Con Éireann and Horse Racing Ireland. Much reporting and detail are provided with regard to how the funding is spent each year. The opportunity is available on an ongoing basis to engage with both organisations, feed in ideas, seek accountability and ask questions about any aspect of that funding.
We are having this engagement to seek the lifting of the cap on the horse and greyhound racing fund under the Horse and Greyhound Racing Act to €95 million, which is necessary under the legislation to ensure that we can continue to provide this funding for both industries each year. The funding is really important. We have seen both industries develop significantly, both the greyhound industry nationally and the world-leading horse racing and thoroughbred sector. Some 30,000 different jobs come from that, with over €2 billion of economic turnover and wealth being created, which is built on the basis of collaboration on both policy and funding between the industry and Government over many years. It will be important to continue that and to hold and build on that position to ensure the sector continues to be an important part of our rural economy in the years ahead.
I thank Senators for their engagement today. I recommend the increasing of the ceiling to ensure that funding can be provided again next year.
Amendment put and declared lost.
I move amendment No. 1:
To insert the following after “October, 2023”:
“;
- that the Minister for Agriculture, Food and the Marine shall, within 3 months following the passing of this motion, lay a report before both Houses of the Oireachtas outlining the manner in which the obligation for rehoming under section 29 of the Greyhound Racing Act 2019 is being complied with”.
I second the amendment.
Amendment put and declared lost.
I move amendment No. 2:
To insert the following after “October, 2023”:
“;
- that the Minister for Agriculture, Food and the Marine shall, within 3 months following the passing of this motion, lay a report before both Houses of the Oireachtas outlining the potential for future regulations to split the Horse and Greyhound Fund into two separate funds”.
I second the amendment.
Amendment put and declared lost.
I move amendment No. 3:
To insert the following after “October, 2023”:
“;
- that the Minister for Agriculture, Food and the Marine shall, within 6 months following the passing of this motion, lay a report before both Houses of the Oireachtas outlining the manner in which the operation and dispersal of the Horse and Greyhound Fund has reflected the obligations under section 42 of the Irish Human Rights and Equality Commission Act 2014”.
I second the amendment.
Amendment put and declared lost.
I move amendment No. 4:
To insert the following after “October, 2023”:
“;
- that the Minister for Agriculture, Food and the Marine shall, within 6 months following the passing of this motion, lay a report before both Houses of the Oireachtas outlining the potential for a dedicated portion of the Fund to be allocated towards community projects which involve the care and protection of animals”.
I second the amendment.
Amendment put and declared lost.
Motion put and declared carried.
Cuireadh an Seanad ar fionraí ar 1.55 p.m. agus cuireadh tús leis arís ar 2.30 p.m.
Sitting suspended at 1.55 p.m. and resumed at 2.30 p.m.