Equestrian:Horse Racing Ireland has called for a "meaningful levy on betting" in order to lessen its dependence on government funding and combat the "major threat" the economic downturn has brought to one of Ireland's proudest and most successful industries.
The HRI called for the change today when revealing the damage the recession did to the industry in 2009.
Figures released by the HRI have revealed attendances at race meetings are down by 11 per cent, prize money is down 12 per cent and on course betting has reduced by 21 per cent.
With people reluctant to indulge luxury investments the number of new owners has also dropped by 28 per cent, but perhaps most concerning for the HRI is the 32 per cent decrease in bloodstock sales.
“The most severe decline during 2009 was once again in bloodstock sales at public auction, which fell by 32 per cent to €67.5 million,” a HRI statement read today.
“This represents a 62 per cent decline compared to the 2007 figure of €176.5 million, reflecting an Irish breeding industry now under major threat.”
HRI chief executive Brian Kavanagh insisted there were positives to 2009 but there are fears the huge success enjoyed in recent years may become a thing of the past.
“On the positive side, 2009 was another year of remarkable achievement for Irish horses, trainers, jockeys and breeders under both codes,” he said. “For the second successive year, Ireland produced the flat world champion racehorse in Sea the Stars. Three of the top four flat horses in the world in 2009 were trained in Ireland and the top three were all Irish bred.
“This level of consistent success showcases our racing and breeding industry at the highest international level. In no other sport can Ireland claim such a level of elite achievement.
“Horse racing and breeding is one of the few industries in which Ireland is rightly recognised as a world leader, due to its indigenous skills base and the tradition of enlightened government policy.”
However, Kavanagh added that “demands on Government finances” mean revenue will have to be generated elsewhere and suggested the betting industry as one of untapped potential.
“This can be done with a meaningful levy on betting, including all off-shore internet and telephone betting which has wrongly escaped the taxation net up to this point.
“In 2002, the Irish betting industry was turning over €1 billion and generating tax for the Exchequer of €68 million. Seven years later, whilst betting has increased to an estimated €5.5 billion, the tax take has declined to €30 million.”
