HRI to drop prize money by 5% for 2011 in budgetary measure
The cost-saving measures include a reduction in prize money and continued restrictions on racecourse capital development projects.
The key features of HRI’s budget for 2011 are as follows:
1. Prize money
Total prize money will reduce by 5% from a forecast €46.6m this year to €44.1m next year, with a 5% cut in base values to be applied across all race categories except for the lowest value races, which will remain at their current levels of €7,000 and €7,500. HRI’s contribution within this total sum will drop by €600k (or 2%), while the combined amount coming from owners’ entry fees and sponsorship will decline by an anticipated €1.9m (11%).
A similar 5% cut in the prize money for Point-to-Points will also apply.
2. Fixtures
There will be no further reduction in fixtures for 2011 (beyond the ten meetings already lost — down from 345 to 335) and the Autumn Point-to-Point season will be retained.
3. Racecourse Capital Developments
The Racecourse Capital Development Fund and Racecourse Improvements Scheme will continue to be curtailed with no new projects to be approved in the short-term. These critical development schemes have been financed in the past through long-term borrowings. Until a secure funding mechanism is put in place, borrowings to cover necessary future work cannot be put in place. Additionally, there will be a cut of €600k in direct racecourse support schemes.
4. Cost Savings
HRI’s administration costs will be cut by 6%. Grants to industry bodies, such as the Irish Equine Centre, Irish Thoroughbred Marketing, Irish Thoroughbred Breeders Association and RACE, will be reduced collectively by 8%.
5. Integrity/Racecourse Services
The Turf Club is independently targeting savings of 7% in relation to integrity costs, which are incorporated into the budget. An equivalent saving is being sought in relation to the integrity costs for Point-to-Point races.
The cost of racecourse services will also be reduced by 8%.
HRI’s Chief Executive, Brian Kavanagh, said: “While further cutbacks are extremely regrettable, they are unavoidable given the fourth cut in the space of two years to HRI’s funding, which has now fallen by €15m, or 25%, since 2008. A secure, long-term funding structure is central to a return to growth within our industry.
“The foal population has dropped by 40% over the past two years and horses in training are currently down 15% compared to last year. The HRI Board consequently felt that it was important to retain our minimum value for prize money at its current level of €7000.”
Kavanagh continued: “HRI will continue to work to ensure that all types of off-shore betting, including betting exchanges, are captured within the taxation net on an equitable basis. The next step will be to secure an appropriate increase in the taxation rate to ensure that there is no future requirement for any direct exchequer subvention.
The current rate of betting duty in Ireland is the lowest in the world and a modest increase will safeguard jobs in rural Ireland, ensure continued inward investment from overseas owners.”
