Andrew Doyle, chairman of the Joint Committee on Agriculture, Food and the Marine, believes moves to bring online betting into the tax net should result in greater financial support for the sport horse industry.
This year, €54.22m will be allocated to the horse and greyhound sectors — by comparison Horse Sport Ireland received about €3m last year — with approximately €25.32m coming from excise duty on off-course betting in 2013, which is directed into the Horse and Greyhound Racing Fund.The money is split 80/20 for horses/greyhounds in recognition of their roles in rural life and as contributors to the economy, but Doyle feels the input of the sport horse sector deserves to be equally recognised through increased state assistance.
“I think the sport horse industry has always suffered in the shadow of the horse-racing industry and the committee aims to address this fact,” said the Wicklow Fine Gael TD.
Doyle confirmed the joint committee is to look at the horse industry in its entirety and should be in a position to present a report to the Government this summer.
“Of course, I cannot preempt the report of the committee, but it is obvious there are shortcomings in the sport horse industry, particularly in terms of keeping the best sport horses in the country. We need to produce and keep the best bloodlines. This can be achieved by supports for breeders and, in particular, stallion owners, along with recognising the important role of the Army Equitation School.
“The committee has not started its investigation yet, but hopefully we will have it completed by the summer. It is generally accepted that the sport horse industry has needs, too.”
Plans to bring remote and online operators into the betting tax net should eliminate the need for state support for the Horse and Greyhound Fund, a welcome development given the demands across all areas of society on limited resources, but Doyle believes investment in the sport horse industry makes economic sense.
“The primary aim is that the fund should be cost neutral to the exchequer. Assuming this occurs with the changes to the betting tax revenue, state money will be freed up, so some of this could be redirected to the sport horse industry.”
At present, betting is subject to a 1% tax, having originally been as high as 10%. In 2001, then finance minister Charlie McCreevy reduced it from 5% to 2%, and Doyle is confident the tax will revert to this level as part of the expected Government reforms.
“My personal opinion is it should go back up to 2%, it was crazy to reduce it to 1% in the first place.”
Meanwhile, Agriculture Minister Simon Coveney yesterday officially launched a “strategic planning process for the sport horse sector”.
The strategy development is being undertaken by Horse Sport Ireland, Teagasc and the RDS, “with an emphasis on export-led growth and increasing employment in the sector”.
On the face of it, this strategic planning process should be welcomed, and one could argue such a process is long overdue, considering Coveney launched an HSI-commissioned UCD evaluation of the economic impact of the sport horse industry in Ireland back in 2012.
However, while it is good to see three important institutions cooperating, you would also have to ask why this was not occurring already.
HSI chairman Pat Wall said: “We will hopefully come up with a roadmap to a commercial industry that will underpin success in all aspects of equestrian sport.”
A consultation process seeking submissions from interested parties will be announced shortly, along with a number of regional meetings.
Strategic planning process steering group: Chairman Patrick Gibbons, professor of strategic management at UCD Smurfit Business School. Members: Pat Wall; HSI chief executive Damian McDonald; Prof. Cathal O’Donoghue, head of Teagasc’s rural economy and development programme; Teagasc equine advisor Declan McArdle; RDS chief executive Michael Duffy; and RDS deputy chief executive Pat Hanly, who is also Dublin Horse Show director.
source : www.irishexaminer.com
