HRI CHALLENGE BASIS FOR CONCLUSIONS OF ESRI Horse Racing Ireland has responded to the publication of a paper by Professor Tony Fahey and Dr. Liam Delaney at the ESRI Budget Perspectives Conference by challenging the basis on which they have developed their argument.Brian Kavanagh, Chief Executive of HRI commented: 'The paper considers horseracing purely in a sporting context which does not show the full picture. It ignores the breeding sector which together with racing forms a single thoroughbred industry. This industry is a significant net contributor to the Irish economy.' HRI welcomed the opportunity for a debate on the funding of horse racing and greyhound racing provided by the publication of the ESRI paper. However HRI point out that in countries around the world where horseracing is an important industry there are similar mechanisms for funding their industries. Kavanagh stated 'The Horse and Greyhound Racing Fund was introduced in 2001 and renewed in 2004 with all party support. It has been the catalyst for significant investment in racecourse facilities and unprecedented international sporting success.'HRI noted with interest the findings of Professor Fahey and Dr Delaney relating to betting. The authors rightly point out that in Britain and Ireland, there are free markets in betting where gambling on horse and greyhound racing is run by companies independent of the racing sector itself. They state that the gambling market in Ireland has mushroomed in recent years and that by 2006 the tax burden on betting has become extremely light. This has created a unique funding challenge which is described in the paper as 'A Free Rider Problem'.The key issue is that as betting activity has grown the revenue from betting duty has declined. This has created a gap in the Horse and Greyhound Racing Fund. Minister for Finance, Brian Cowen, stated in his budget speech of 2005 that he would examine the potential for widening the tax base on which betting duty would apply. HRI are working with Government and in particular with the Department of Arts, Sport & Tourism and with Minister John O'Donoghue to address this issue. Brian Kavanagh stated 'Racing can be and should be fully funded from duty on off course betting and HRI is committed to this objective.'
