HRI welcome Taoiseach's betting plans Horse Racing Ireland (HRI) today welcomed a speech made by An Taoiseach Brian Cowen T.D. at a dinner in the Irish Farm Centre last night in which he announced that legislation would be introduced to tax all forms of betting. In his speech at the Irish Field –hosted event, An Taoiseach, Brian Cowen stated: “The Government will introduce legislation to ensure that overseas betting providers comply with a licensing regime that will permit them to sell their products into our jurisdiction. “This will have the additional benefit of facilitating the extension of the tax regime for the betting industry to all those providing online and telephone betting and so underpin funding for the racing industry.” HRI Chief Executive Brian Kavanagh said: “This announcement maps out a solution to the questions surrounding the funding of the racing industry which has been of concern for some time. “Reductions in funding have led to job losses and a weakening of our world-class industry. We have consistently said that its funding should be fully provided for through the duty on betting – a position which existed until returns to the exchequer fell by almost half in the face of competitive pressure from un-taxed betting.  “We whole-heartedly welcome the Taoiseach’s announcement of a clear course of action to restore balance to the funding mechanism.”  Speaking at the same event, Brendan Smith T.D. Minister for Agriculture, Fisheries and Food said: “I share the Taoiseach’s view that now is the time for all stakeholders, of which the Government is one, to work together in the best interests of the future of the industry.  “I can assure you of my commitment to work with all of the players to secure an ambitious and positive future for the Irish Racing Industry.”  Brian Kavanagh added: “I would particularly like to compliment the Minister for Agriculture, Fisheries & Food, Brendan Smith T.D. and his officials for the understanding and support which they have shown for our industry.  “We very much look forward to working with them to secure the future of our sector.  “In 2001 when the Horse & Greyhound Racing Fund was established, betting in Ireland was €1.3billion, generating duty of approximately €68million.  “In 2009, although betting has increased to more than €4 billion, the duty received by the exchequer has fallen to €31million.  We welcome the commitment to address this anomaly”. Below is the full speech by the Taoiseach, Mr. Brian Cowen, T.D., at Dinner hosted by The Irish Field, Irish Farm Centre, Bluebell, Thursday, 13 May, 2010. Ladies and Gentlemen It is a great pleasure to be here tonight with the various representatives of the Irish racing and breeding industries. I am particularly grateful to Matt Dempsey and Leo Powell for inviting me and for your hospitality. I am also delighted to be joined by my cabinet colleague, Brendan Smith, Minister for Agriculture, Fisheries and Food, who now has responsibility for the equine sector. I must at the outset declare an interest, due to my membership of the Grand Alliance Racing Syndicate which has had some success this year with Donna’s Palm, trained by my good friend, Noel Meade. I am glad to see Noel here this evening. This syndicate – an all too rare example of cross-party support in the Dáil - has given me a great insight into the pleasures and frustrations of racehorse ownership! The Irish bloodstock breeding and racing industry is of major national importance in terms of employment - especially in rural areas; exports; and tourism. The numbers speak for themselves: - there some 22,000 full-time employees in the thoroughbred equine sector; - figures published recently by Horse Racing Ireland show that last year, Irish horses were exported to over 33 countries worldwide, with a total value of €175 million; - approximately 70,000 tourists, mostly from Britain, came to Ireland in 2009 and attended race meetings; - and Minister Smith tells me that over 115,000 people visit the Irish National stud and the Japanese Gardens in Tully each year. For a small country, Ireland holds a pre-eminent position in the thoroughbred racing and breeding world. Our foal population is the third largest in the world, accounting for 42% of total EU output, and our horses, jockeys, trainers and owners regularly succeed at the highest international levels. In a way, Irish horses can be seen as standard - bearers for our country. I understand that, last weekend alone, Irish - bred horses won major races in countries as diverse as France, Spain, Hong Kong, Britain and Italy. Successive Governments have recognised the importance of the horse industry for our country, and have supported it through legislation and policy initiatives down through the years. By the end of 2009, Horse Racing Ireland had received €491 million from the Horse and Greyhound Racing Fund and it is set to receive over €47 million from the Fund in 2010. Further infrastructural supports are provided to the industry through various measures operated by the Department of Agriculture, Fisheries and Food. This commitment to investment has enabled Ireland to develop into a world centre of excellence for horse racing and breeding. Although a successful industry, Irish racing, in common with other sectors of the economy, is facing a challenging economic environment. It has not been insulated from the general economic downturn. The financing of future funding of the industry is a challenge facing us all. This is a complex issue and Ireland is not alone in trying to come to terms with this problem. France, a country which is providing increased competition to our racing and breeding sectors, operates from the advantage of a Tote monopoly; nd their betting sector creates a much higher return for racing. Ireland, on the other hand, has one of the most open betting markets in the world. The Horse and Greyhound Racing Fund was established at a time when annual income from excise duty collected on off-course betting - the funding stream for the Fund - was in the region of €60m per annum. Receipts from excise duty on off-course betting dropped to €31m in 2010. The Exchequer contributed in excess of €31m to the Fund in 2009 and a further €28m in 2010. However, given the current pressures on the public finances, it's obvious that we need to put in place a more sustainable system of support for the industry. I believe that such support should continue to come from the proceeds of betting duty. All forms of betting including betting offered over the internet, other remote platforms or over the telephone should make a contribution. Such betting must be brought within the tax net, not just because it will increase revenue, but also because it will mean that those currently not contributing to securing the future of important indigenous industries will now make that contribution. The Government will introduce legislation to ensure that overseas betting providers comply with a licensing regime that will permit them to sell their products into our jurisdiction. This will have the additional benefit of facilitating the extension of the tax regime for the betting industry to all those providing online and telephone betting and so underpin funding for the racing industry. I have acknowledged that the racing and breeding sectors have faced a very difficult time over the last two years, but they too are showing some signs of stabilisation. I know that harsh measures have had to be taken including significant cuts in prize money, pay cuts across the board, and suspension of racecourse capital development. None of this is easy and I would like to compliment the Board of Horse Racing Ireland, and in particular its Chairman, Denis Brosnan for the leadership which they have shown in this regard. To conclude, too much has been achieved over the last thirty years in establishing a world class racing and breeding industry in Ireland to allow it to be lost. Especially an industry which is based on indigenous skills, provides rural employment, is export driven and is environmentally sound. Once again, many thanks for inviting me here this evening - and I look forward to further international success throughout the coming flat season and in the Autumn when the national hunt season resumes in earnest.
