Horse racing industry faces major overhaul

Agriculture Minister Simon Coveney has said he is to proceed with implementing the recommendations of a major report into the horse racing industry.

Released in August, the Indecon Report made a total of 37 recommendations, one of which stated that the €29m annual subvention taxpayers give to the racing industry was unsustainable.

The report said if a duty was applied to all of the €4.6bn worth of bets laid by Irish punters it would almost eliminate the need for a taxpayer subvention.

It also advised that major reforms were needed at Horse Racing Ireland (HRI) to ensure proper oversight of public money, including changes to the make-up of the board.

In a statement yesterday, Mr Coveney announced his general acceptance of the recommendations of the report. He said implementing the recommendations would “provide a more sustainable basis for the development of the sector and stressed the importance of all stakeholders working together to ensure Ireland retains its world-leading position in thoroughbred breeding and racing”.

Mr Coveney said he would address the recommendations as follows:

* Funding: The report identified the need to introduce measures to secure a significant increase in taxation from the betting sector.

Mr Coveney said the Government has already published a bill to amend the Betting Act 1931 which will provide for the extension of betting duty to online and remote betting.

He said he was considering how a multi-annual commitment to funding could be provided. He also accepted the recommendation that a value-for-money review of HRI should be undertaken in due course.

* Streamlining/efficiency of functions: Mr Coveney has asked the Turf Club and HRI to immediately establish a joint implementation taskforce, as recommended in the report, to address the opportunities for integration of functions, with a view to achieving greater efficiencies and to achieve a minimum of 10% reduction in costs.

The Department of Agriculture will also be represented on this taskforce. The group is expected to complete its work within two months.

* Board structure: Mr Coveney said he would allow the two statutory subcommittees being set up, representing the betting sector, and jockeys, stable workers, and others employed in the industry, to each nominate a representative to the main board.

In addition to the chairman, the board will comprise three public interest directors; three members of the Turf Club; one representative of racehorse owners, racehorse breeders, racehorse trainers, and authorised racecourses; as well as the two nominees from the new committees.

Mr Coveney said he intended to bring in legislation to implement the recommendations by February. He also confirmed that he would nominate a new chair of HRI by the end of November, but has asked the incumbent, Denis Brosnan, to remain in the position until then.