HRI deliver plan to government
They also wish to progress to with interested parties “the concept of an Irish Racing Channel that will also offer a fair financial return to racecourses.”
HRI’s chairman Denis Brosnan handed over a lengthy document to the Arts, Sport and Tourism Minister John O’Donoghue with a concise mission statement: To develop and promote Ireland as a world centre of excellence for horseracing and breeding.
In his address, Mr Brosnan called on the Government to provide a secure funding arrangement for the industry by continuation of the Horse and Greyhound Racing Fund and promised that they would generate a significant increase in other sources of revenue to enable them to achieve their objective.
“The achievement of our mission will depend on our ability to establish clear business goals and put in place the resources of labour, capital and enterprise required to bring each to fruition,” said Brosnan.
The chairman made particular reference to the country’s 27 racecourses. “The principal focus of our plan is on the racecourse sector and the creation of a new business model based on improved income streams, development funding, training and general management and marketing support.”
He added: “The rapid growth of the breeding industry in recent years is both a testament to success and a challenge for the future.
“We outline strategies to encourage moderation in the production of foals and to protect the quality of Irish thoroughbreds.”
Dealing with a summary of the key goals incorporated in the plan, HRI declared that they wanted “to examine, refine and market the entire racing product with a customer focus to make racing a sport of choice and ensure it provided unique and enjoyable experiences for all race-goers.”
HRI want the amount paid annually by the Government to remain at the current level (close on €50m) plus the Consumer Price Index are 3% of off course betting, whichever is greater, so that the Government input can be fully financed at the earliest date from the duty on off course turnover.
HRI propose to increase the charge on turnover for on course bookmakers from 0.3% to 1.3%, with the extra 1% being returned directly to racecourses to help keep admission prices as low as possible.
HRI will allocate 50% of its annual funding to prize money, enabling the total on offer to grow from €46 million last year to at least €60 million in 2007 while also reducing the contribution made by owners (via entry fees) from 31% to 25%.
Dealing with media rights and data licensing, HRI are to introduce a comprehensive system whereby all users of Irish Racing data for any purpose, including the promotion of gambling, Internet gaming sites and betting exchanges, will pay an appropriate commercial rate.
HRI are to allocate at least €60m towards the improvement of racecourses, to create a new Capital Development Fund of €100m.
Dealing with the number of racecourses (27), they promised not to initiate any programme of rationalisation “but recognise that alternative land values and commercial pressures on racecourse owners may lead to this.”
HRI are to facilitate the introduction of an all-weather track in Ireland within the life of the plan, and are to introduce a mandatory code of conduct for all licensed on-course bookmakers.
Again referring to betting exchanges, they intend to implement arrangements with these exchanges “to ensure that, as well as returning a fair percentage of their income to racing, appropriate integrity measures are put in place.”
On the question of fixtures, they intend that the fixture list will have a customer-friendly emphasis by staging meetings at times and in places which best suit the race going public including a programme of Saturday evening meetings.
In the hope of the Tote increasing its annual profitability and its dividend to racing from €2m to €6m annually by 2007, several initiatives are planned notably the experiment from April 2003 of the Tote reducing its retention rate on win pools for smaller fields from 20% to 10%.
