RACING:AN INDEPENDENT review of how racing is run in Ireland has been ordered by the Minister for Agriculture Simon Coveney in what could be the first step towards a major revamp of the sport's administration here.

In a wide-ranging speech at yesterday’s Horse Racing Ireland awards, Coveney pledged continuing government support for the racing industry, with a regime that will bring telephone and internet betting into the tax net expected to be in place in the first half of 2012.

However, he also pulled a Christmas rabbit out of the hat for the New Year when he announced an independent review of “the structures and legislation governing the industry”. The tender to carry out such a review will be up for grabs within weeks.

“The industry should not see this as a threat. It will be a review carried out in an open and transparent manner to establish the way racing is governed and regulated,” said Coveney. “An independent outsider will listen to everyone and then report back to me.”

Coveney gave no predictions of what might emerge from such a review, but there was immediate speculation that a reduction in the size of racing’s ruling body, HRI, could be in the offing, with the Turf Club as it currently operates open to radical change.

The 221-year-old Turf Club polices the integrity of racing, but has seen major funding cuts over the last four years and the minister said the new review group will examine Irish racing’s “integrity and regulation.”

While the review group carries out its investigations, the HRI board will continue to be chaired by businessman Denis Brosnan who had been expected to step down from the HRI role this month. Brosnan has agreed to stay in the position until November of 2012 at the latest. Depending on when the review group reports, he could leave the board before November.

Brosnan said yesterday that prize-money levels in Ireland will be unaltered in 2012 due to a television pictures deal and a minimal cut in government funding to the Horse and Greyhound Fund in the budget earlier this month.

He praised Minister Coveney’s dealings with Irish racing as a “revelation” since the government came into power earlier in the year and pointed to the “wonderful job he and his officials did in keeping racing’s budget virtually uncut”.

In turn, the Coveney said he could justify maintaining racing’s funding levels to anyone and that racing was deserving of even more financial support.

“I and the government are committed to the industry and there was huge proof of that in the budget,” he said. “We have not gone for short-term cutbacks because that could lose significant investment in the middle and long term.”

The minister added: “Irish racing is an industry often misunderstood and misrepresented in terms of the people in it, and in terms of how huge an impact it has globally. It is a billion Euro industry for Ireland that employs 16,000 people. To keep that reputation intact, the government must show commitment.”

A mechanism for the collection of tax revenue from telephone and internet betting is expected to be in place early next year and, once that has been bedded down, the minister said an increase in the one per cent betting tax rate would be considered after consultations with bookmakers.

“What we have to get away from is going to the Department of Finance, cap in hand, making a case for racing. What I would like to see is the industry funding itself with levies from bets, both on and off line, from the exchanges, and maybe other sources,” said Coveney.

“We have to ensure the means of getting revenue from betting turnover is on a sound legal footing. But I am confident of getting the right mechanism within weeks. We need to ensure that bookmakers playing by the rules are not put at a competitive disadvantage with those that don’t,” he added.

Champion trainer Willie Mullins, an award winner yesterday, welcomed the government’s commitment to funding.

“I don’t think people realise the employment racing gives in the country and the amount of investment from people coming here and spending their money in Ireland,” he said.

“The reason they’re coming is prize-money. That’s the reason they don’t go to England because the money there is so mediocre, except for the very top level.”