Significant changes to funding of Racing Industry announced by Horse Racing Ireland
Prize Money to be reduced by 7%
Short term suspension of Racecourse Capital Development Programme
Pay Freeze for 10 Months
Operating Costs to be reduced by €1.3 million
Breeders Prize Scheme discontinued
Horse Racing Ireland (HRI) today announced a series of budgetary measures for 2009. These are in response to the challenging economic environment and the reduction in funding to the industry announced in Budget 2009. The measures include a range of cost saving initiatives, a reduction in prize money, a freezing of grant aid to organisations supported by HRI, a pay freeze for HRI staff and restrictions on racecourse capital development projects.
HRI’s Chief Executive, Brian Kavanagh stated: “Irish racing and breeding has shown consistent growth in recent years. Today Ireland’s breeding industry is the third largest in the world and Irish trained horses have won two thirds of the Group 1 flat races run in Britain and Ireland this year. Central to this growth and success has been the long term security of funding provided by the Horse and Greyhound Racing Fund”.
The Irish horse racing and breeding industry employs over 16,500 people directly and indirectly and 1.5 million people go racing in Ireland every year.
Brian Kavanagh continued: “While cutbacks are regrettable, they are unavoidable in the current climate. An improvement in the economic environment and the continuation of secure, long term funding are central to a return to growth in the industry. HRI is already working with Government to achieve this aim and in particular to ensure the resumption of the Racecourse Capital Development Programmeas soon as possible. ”
The key features of the 2009 HRI budget are as follows:-
1.Prize Money
Total prize money will be reduced by €4.2 million to €56.5 million in 2009. On a like for like basis this represents a 7% reduction from 2008, which will be applied across all categories of races. Funding for point to point racing will also be reduced.
2.Racecourse Capital Developments
The Racecourse Capital Development Fund will be curtailed. Any projects on which work has already commenced will be concluded, but no new projects will be approved in the short term. The Racecourse Capital Development Fund is financed by long term borrowings and until the issues surrounding the future of the Horse and Greyhound Racing Fund are addressed, borrowings to cover necessary future developments cannot be put in place.
3.Cost Savings
Cost savings of €1.3 million will be achieved within HRI through reductions in central overhead and administration costs, and reduced activity in marketing.
4. Pay Freeze
A ten month pay freeze will be applied to all staff employed by HRI, Tote Ireland and HRI Racecourses Ltd, with the implementation of the first phase of the National Wage Agreement deferred for seven months.
5. Integrity Costs
The funding of integrity costs incurred by the Turf Club will be reduced by 5.8% in 2009 with most of the savings to be achieved from greater efficiencies rather than a reduced level of activity.
6.Racecourse Support Schemes
A number of racecourse support schemes including the sponsorship incentive scheme, the winter racing grant, the share of tote betting and the big screen support scheme will be restricted or amended.
7. Grants to Industry Bodies
All grants paid by HRI to industry bodies such as RACE, the Irish Equine Centre, the Blue Cross, the Order of Malta, the Irish Farriery School and the Irish Horse Welfare Trust will be frozen at 2008 levels.
8. HRI Charges
In view of the difficulties being faced by clients, all charges levied by HRI including race entry fees, registration charges, bookmakers’ permit fees and the Thoroughbred Foal Levy will be held at 2008 levels.
9. Breeders Prizes Scheme
In view of the anticipated decrease in income from the Thoroughbred Foal Levy next year the Breeders Prize Scheme will be discontinued with effect from 1st January 2009.
10. Sponsorship
HRI recognises the importance of sponsorship to Irish racing in recent years and in order to protect the historically healthy levels of race sponsorship, HRI will work together with racecourses and their sponsors to tailor packages to reflect the current difficult environment.