Dáil Éireann Debate, Wednesday - 1 December 2004
60 Ms B. Moynihan-Cronin asked the Minister for Arts, Sport and Tourism the number of race courses which are totally or partly in private ownership with regard to funding for race courses recently announced by him under the capital development fund; and if he will make a statement on the matter. [31423/04]
Amharc ar fhreagraHorse Racing Ireland, HRI, was established as the statutory body with responsibility for the horseracing industry under the Horse and Greyhound Racing Act 2001. The general functions of HRI, as outlined in the Irish Horseracing Industry Act 1994, as amended by the Horse and Greyhound Racing Act 2001, include the development and promotion of the Irish horseracing industry, including the development of authorised race courses and the making of grants, loans and other disbursements to authorised race courses.
HRI receives a guaranteed level of funding from the horse and greyhound racing fund which is based on accrued excise duty on off-course betting, subject to a minimum level based on the 2000 level adjusted for inflation. Any shortfall in the amount generated by excise duty is made up by direct Exchequer subvention. The Government has decided to increase the limits of the horse and greyhound racing fund to €550 million to continue the fund for a further four years to 2008. By the end of 2004, Horse Racing Ireland will have received €206.4 million from the fund.
The new race course capital development fund that HRI has put in place provides a matching funding scheme for Irish race courses to substantially upgrade their facilities over the next five years. The total investment by race courses and HRI combined will be almost €200 million over the period. HRI will provide up to €110 million of the money in grant aid and the race courses will finance the balance from their own resources.
There are 25 race courses in operation in the State, of which 23 are totally or partly in private ownership. At present, the HRI owns Leopardstown and Navan, as well as holding a 78% share in Tipperary and owning the lands at Cork race course. HRI is in the process of acquiring a 50% share in Punchestown.
HRI proposes to allocate 55% grant aid to any privately owned race course which can contribute the remaining 45% towards the cost of any capital development undertaken. All projects will be thoroughly evaluated by HRI prior to the allocation of grant aid and the appropriate security will be taken by HRI over those race course lands and assets.
It was reported in the media and elsewhere that an all-weather track could be sited at Abbotstown. I assume this race course would come under the auspices of Horse Racing Ireland. As so many courses are privately owned, does the Minister consider it would be to the advantage of Horse Racing Ireland to acquire a controlling interest in more race courses than it has at present? Why was it decided to invest in Punchestown as opposed to any other privately owned race course? In future, is it intended that Horse Racing Ireland will take a controlling interest in more race courses?
Are we any closer to a decision on the location of an all-weather track and will it be located at Abbotstown or Dundalk? Has the position advanced further than what the Minister stated during Question Time on the last occasion?
If Deputy Wall will excuse the terminology, at this point Abbotstown is a non-runner. We are examining the question of whether Dundalk will be in a position to proceed with the all-weather track. HRI has made clear at this stage that it is in favour of an all-weather track, as am I. In Horse Racing Ireland's strategy statement, having an all-weather track in the country is one of the set objectives. Dundalk is in all probability the most suitable location for an all-weather track for a number of reasons, not least of which is that the course appears to be suitable for it in terms of length and has the added advantage that a greyhound racing facility is already in place. Moreover, its proximity to the North of Ireland is of importance because more than a few punters of consequence happen to live there.
That aside, Horse Racing Ireland is willing to put up 55% of the cost of an all-weather track. However, it does not believe that the specifications that were pursued in the case of Dundalk would be adequate and has suggested that such a development would cost €18 million to €20 million. In that context, it has sought confirmation from the Dundalk executive that it would be in a position to put up €8 million with HRI putting up the remainder.
Deputy Wall asked about the position on Punchestown, in regard to which he knows there were difficulties in recent years. These are being resolved. One of the principle reasons HRI would be interested in acquiring a significant shareholding in Punchestown is that it is one of our flagship tracks. To many people, it is the Cheltenham of Ireland, particularly to followers of national hunt racing. It is desirable for HRI to pursue the acquiring of interests in the remainder of the racecourses.However, realistically it is constrained by the amount of capital available to it as well as the reluctance of owners of privately-owned tracks to sell. In that connection, it would be remiss if I did not acknowledge the contribution and interest which has always been shown by the private owners of such courses.
