New horse industry cuts will close courses, cost jobs
HRI have slashed prize money by 10%, asked staff to take a 6% pay cut while there will be no funding for any racecourse capital development projects in 2010. Racecourse support schemes will also be hit as will grant aid to industry bodies including the Irish Thoroughbred Marketing and the Order of Malta.
Mr Kavanagh then predicted massive job losses across the sector and said that closures of some race courses was ‘inevitable’ in the years ahead.
He explained: “Following the third significant cut to the organisation’s funding in the last 14 months, HRI estimates that up to 1,500 jobs have been lost in the racing and breeding industry in the last 18 months and, regrettably, the measures being announced will lead to further job losses.
“What this will do will balance the books for next year. That is the immediate strategy. We are confident that this will balance the books but then the real problems begin.”
He continued: “This is more than just the HRI – this relates to everyone involved in the Irish equine industry.
“My concern is that all the good work of the last 20 years may unravel. We have been punching above our weight on a global level. But now we find ourselves staring over a cliff. All this could be lost.
“A huge concern relates to employment. Trainers, stud farms, race courses and some of the bigger operations have had to let people go. We estimated that the job losses will be in the thousands next year.”
In relation to the potential of race course closure Mr Kavanagh admitted: “I can’t say it will happen in 2010, but I think it is inevitable that some courses will close in the near future.”
HRI Chairman, Denis Brosnan has called on the government to take emergency action otherwise “one of the few genuine Irish success stories of recent years will disintegrate before our eyes.”
Mr Brosnan said: “Horse racing and breeding is a genuine Irish success story. It is one of the few activities in which Ireland is a world leader. It provides 15,500 jobs in rural Ireland, whilst generating significant exports and inward investment.
“In 2009 three of the top four horses in the world were trained in Ireland and for the 19th consecutive year, an Irish-based stallion will be the leading sire in Europe. However, all of this is in danger now due to the absence of long term security of funding for the industry.
“There are clear signs that, with the combination of the series of budget cuts and the removal of the stallion tax exemption, we are seeing horses and investment moving to other countries, particularly France, with a consequent loss of jobs.
“These countries have secure funding mechanisms, directly linked to their betting industry. In 2002, the Irish betting industry turned over €1bn and generated €68m in duty for the state. Today, the same Irish betting industry turns over €5.5bn but only generates €30m in duty. The effect of this anomaly is that the horse racing industry is now dependent on direct State funding drawn from the same pool as health, education and social welfare. This is an unnecessary and unsustainable position.”
Mr Brosnan added: “HRI’s request to Government is simple. Put the funding structure of our industry on a secure basis.”
