Fears for jobs after cuts in betting tax

GOVERNMENT reductions in betting tax have endangered the future of horse racing and breeding in Ireland, according to the body which oversees the industry’s development.

Addressing a meeting of the Oireachtas Agriculture Committee, yesterday, Horse Racing Ireland (HRI) chief executive Brian Kavanagh said his industry was “one of the few sectors in which Ireland has genuine claims to world leadership” but that it now faced considerable job losses.

Mr Kavanagh said that when HRI was established in 2001, its activities were to be fully financed by revenue from excise duty on off-course betting, but government reduction of this levy from 5% to 1% and a failure to effectively tax online, off-shore betting meant that the Exchequer now has to make up a shortfall in funding.

The Horse and Greyhound Racing Fund has been cut from €76m in 2008 to €57.2m in 2011.

“This is not a sustainable position from which to develop a key industry,” Mr Kavanagh said.

He added that many of the 16,500 full-time jobs supported by the industry and widely dispersed through rural communities were under threat, particularly with the development of horse breeding in France, Ireland’s main competitor. He recommended an increase in betting duty, as well as supporting relevant measures to address the taxation of offshore betting contained in the Finance Bill and Betting Amendment Bill.

Mr Kavanagh said such moves were essential to maintain the industry, which contributes in excess of €1bn to the Irish economy every year, and generates in excess of 80,000 tourist visits annually. It was also pointed out that the industry is export driven — 50% of our output is exported to 40 countries worldwide.

Labour TD Sean Sherlock said that he welcomed the HRI’s support of his party’s policy document, Raising the Stake, which seeks to increase betting duty.

He added that it was not feasible that the Irish taxpayer would continue to fund course prize money while online betting was going untaxed. “The next government has to go after online betting,” he said.

Sinn Féin’s Martin Ferris also supported the taxing of online betting, stating he was also concerned by its prevalence and the social problems created for those “with gambling habits”.

Fine Gael’s Shane McEntee said he was aware of the effects of the downturn on horse racing, with a syndicate he is a part of about be “wound up” because people couldn’t afford it.

At the conclusion of the rushed committee meeting, due to TDs having to vote on the Finance Bill, chairman Johnny Brady of Fianna Fáil said that he expected Mr Kavanagh and his colleagues would be invited back early in the new government’s term.