Paul Murphy: Condemns €70m State Prize Money to Wealthy Owners

Thanks to the Minister for taking this topical issue. We know, and we are due to vote on it shortly in this Dáil, that every year the State gives about 90 million euros in public funds to the horse and greyhound racing industry. We know that about 70 million euros of that goes to horse racing Ireland. What is new is the figures, thanks to an answer to a parliamentary question that I put in, we know how much of that goes to prize money. 70% of that 70 million euros goes to prize money, about between 40 and 45 million euros. That compares to about 7% in answers I've just gotten back from horse racing Ireland that goes to animal welfare. In reality, there is a massive transfer of public money to a small number of multi-millionaires who get it tax-free, who win it in the form of prize money. That's in black and white what is happening, you can look at the horse racing Ireland fact book, the most recent one for 2021, top four winners, JP McManus, Michael O'Leary, John Magnier, Michael Tabor, all multi-millionaires, none of them paying tax on this money. You go broader than that, the top 10 owners won 11.8 million in one year. This money is not like going to the poorly paid people within horse racing, it's going to already super wealthy individuals. You can look at the various races, you can look who's winning, the prize money is concentrated in a small number of people who are already very wealthy. You compare this amount of money to what is spent on other things, compare it in terms of sports, and I know those people who are winning it, and the Minister doesn't like this comparison. But the total core funding that Sports Ireland gives out on a yearly basis is 15 million euros. That 15 million euros is for the GAA, it's for the FAI, it's for the IRFU, it's for Swim Ireland, it's for Special Olympics, for Athletics Ireland. Horse racing Ireland even gets a bit of that money, and a range of others. That's 15 million together, compared with 70 million euros in public money that goes to the horse racing industry, the vast majority of which used for prize money that ends up in the hands of already extremely rich money, rich people. Compare the 70 million euros to the half that that is spent on domestic violence, refuge, shelters, a similar amount of money spelled in terms of National Park and Wildlife Service. At any time of year, in any given context, I think it would be unconscionable to have such a giveaway of public money to already extremely rich individuals, tax free. But to have this continuing at a time of deep cost of living crisis, when one in three families are suffering from energy poverty, and then in reality, their taxes, some of them, are ending up in the hands of multi-multi-millionaires who have no cost of living crisis whatsoever. That is absolutely scandalous. I do think it's ironic, we were having this discussion on the day that the government launched regulation in terms of gambling, but why is the betting duty going to the horse and greyhound racing industry as opposed to tackling problem gambling? Thanks. Thank you, Laskin, Carla, and thank you, Deputy Murphy. So, what I didn't hear you mention once in your contribution, Deputy Murphy, was the valuable contribution that the thoroughbred sector and the horse racing sector makes to our national economy, or indeed the fact that it supports employment of 29,000 jobs across the country, and underpins a thoroughbred industry, which has an annual economic impact of 1.84 billion euro. I didn't hear you mention that once, and I don't think it's something that you're too concerned about either. It is one of the sectors and industries, Deputy Murphy, in which Ireland is a true global leader. The broad geographic distribution of this industry contributes to the achievement of a more balanced regional economic growth and rural economic activity, providing a wide range of employment and income opportunities from stable staff to trainers to jockeys to breeders and farmers. The support provided by public funds through investment in the industry has enabled Ireland to develop a world-class reputation for excellence in horse racing and breeding. The Irish thoroughbred breeding industry is extremely competitive at a global level. We're the second largest producer of blood stock in the world by value sold after the USA. Ireland also has the world's third highest number of thoroughbreds foaled each year after the USA and Australia. Successive governments have acknowledged the importance of this industry and have supported it. Horse Racing Ireland is established under the Horse and Greyhound Racing Act of 2001. A commercial state body is responsible for overall administration, promotion and development of the industry. The Horse and Greyhound Racing Fund receives financial support through the Horse and Greyhound Fund. My department makes payments through Horse Racing Ireland and Rassia Conneran. In relation to the current expenditure allocation, no more than 80% is to be applied to prize money. In 2020, €67 million was allocated to HRA from the fund and €76 million last year. In 2020, €54 million of the HRA allocation was assigned for current expenditure. The total prize money paid out in horse racing for 2020 was some €51.5 million, of which HRA contributed €35 million, 68%. Private sponsorship or prize money was some €16.3 million, of which racehorse owners themselves contributed some €11.7 million, with the balance of private sponsorship contributed by corporate bodies. The HRA Factbook for 2021 shows that there were 394 fixtures with 8,700 individual runners and 25% of these horses winning at least one race. Over 6,000 of the individual runners won prize money at some stage, which equates to around 69% of individual runners. We are not outliers in this space. The support provided by public funds through investment in this industry has enabled us to develop a world-class reputation for excellence in horse racing and breeding. Horse racing in other major jurisdictions is also funded by government, either directly or indirectly. Ireland's racing industry is in direct competition with Britain, France, Australia, America and Hong Kong, for example. The global nature of the racing and breeding industry means that these countries compete for the same pool of foreign direct investment, which ultimately fuels horses and training and therefore employment. In France, there is approximately €400 million in government support per annum. In Hong Kong, the state supports their approximately €800 million per annum. In Australia, returns to racing differ from state to state. However, in the state of Victoria, for example, this amounted to the equivalent of €251 million in revenue in the year 2020 and 2021. The owners of racehorses who earn prize money are not subject to taxation in respect of this income. Racehorse trainers and jockeys, however, are subject to taxation. There is no revelation in that our horse racing and thoroughbred sectors are truly world-class. We do perform, as a deputy, to conclude way beyond our size and scale. And this is a sector that supports thousands of jobs in rural parishes across the country and one that we should definitely support. Thank you. Thank you. I didn't hear the Minister mention, J.P. McManus, Michael O'Leary, John Magnier, not to mention the various people who aren't living in this country who are in receipt of this public money. Because you cut out all the propaganda and what's happening is that the government is choosing to give £40 million plus of public money every year to people who are already multimillionaires. That's what's happening. The Minister can talk about the industry, how successful it is and so on. Fine. Yes, I agree. But that's not an argument to use it to give tens of millions of euros to already very rich people. That's an argument to say that the industry can fund itself, as is the case in many, many, many other countries. The idea that Ireland is not an outlier, there's a reason that Irish prize money is so high, and it's because of the extra public money that's provided. The industry would be capable of paying for prize money rather than the majority of prize money being paid for by the public through broadcasting rights, entry fees, sponsorship, breeding and bloodstock sales, to name but a few potential areas of income. The bottom line here is a political choice to hand this money over. I don't think it's justified in its own terms. I don't think it's justified in terms of the poor relation that all the other sports in the entire country that have more people participating in. I don't think that's justified. I also don't think it's justified. I mean, at least the Minister didn't make the argument that HRI have made. HRI have said in the statement they're not in receipt of any taxpayer's money. The reason for that is because they say, well, it's all raised from betting tax, but that's paid by ordinary people. But it does bring to the point that do you not accept that this money that is raised from taxes on gambling should be spent on tackling the problem of gambling addiction, problem gambling, which the government has actually spoken about a bunch today. Thank you very much. Thank you very much. Thank you very much. Thank you very much. Thank you very much. Thank you very much. Thank you. Deputy Murphy, if you cross the M50 on occasions other than just to attend protests in parts of the country— I actually do not cross the M50. Oh, do you? I do. I do. Well, if you're headed to east or north or south as opposed to—or west, north or south as opposed to—for any reason other than attending protests, you would find and learn very quickly that the thoroughbred sector and the racing sector is a really important ployer and a really important part of the rural economy. And as I said to you, again, which you didn't reference, it's responsible and contributing to 29,000 jobs in this country, a country where the thoroughbred sector competes with anywhere across the world in terms of its scale, in terms of the global impact it makes. And that means that here in Ireland, we have jobs and 1.8 billion euro worth of economic activity as a result of that. And that didn't happen by accident, Deputy Murphy. It doesn't happen by accident. It happened by deliberate, consistent government policy and government underpinning of the sector. And again, if you traveled for anything other than protests, maybe to a race meeting now and again, instead, you might actually learn and realize as well, you might learn and realize that in relation to that thoroughbred industry and sector that's there, it revolves around racing. It's about racing. The horses are trained for racing. The horses are bred for racing. It revolves around the race. It's therefore important that we have world competing racing in this country to underpin that sector. That's why we as a government invest in it. It then ensures that that sector continues. It ensures it grows. It ensures we compete with racing industries in other parts of the world and continue to be world leading. And in doing so, continue to ensure that this country can be strong, that racing can contribute to what is the strong economy that we have and that we have full employment we have today. Instead of the basket case of a country, we'd be Deputy Murphy if we followed your protocol in relation to how to run it, in relation to the thoroughbred sector or any other part of the economy. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. lend ya mic. doesn't forget you? uxis ministry making defense boca коммент flavor ώς