Further Cutbacks to Funding of Racing Industry
Announced by Horse Racing Ireland
No funding for any Racecourse Capital Development Projects
Racecourse Support Schemes to be reduced by 12%
Integrity Costs to be reduced by 11%
Prize Money to be reduced by 10% - back to 2002 levels
HRI staff to take pay cuts averaging 6%
Grants to Industry Bodies reduced by 6%
Following the 13% (€7.1million) cutback in Government Funding to the horse racing sector announced in the Budget, Horse Racing Ireland (HRI) today announced a series of cost saving measures and funding reductions for 2010. The measures include cutbacks across all areas of activity, the cessation of funding for racecourse improvements and capital development projects, reduced direct financial support for racecourses, reductions in the cost (but not the level of service) of the integrity function, a 10% overall cut in prize money, pay cuts averaging 6% for HRI staff and lower grant aid for all of the organisations supported by HRI.
HRI's Chief Executive, Brian Kavanagh, stated: "The Board of HRI has had to make significant cutbacks to ensure Irish racing operates to a balanced budget for 2010. Following the third significant cut to the organisation’s funding in the last fourteen months, HRI estimates that up to 1,500 jobs have been lost in the racing and breeding industry in the last eighteen months and regrettably the measures being announced today will lead to further job losses."
The key features of the HRI budget 2010 are as follows:-
1. Racecourse Capital Developments
HRI will not be in a position to provide funding towards any new racecourse capital projects until the issues surrounding the long-term security of funding are addressed. HRI has previously indicated its support in principle for the plan to re-locate Tramore Racecourse to a new site, generating significant local investment and employment, but regrettably no funding will be available for this project in 2010. Additionally, HRI spent €3 million in grant aid towards the improvement of facilities at racecourses throughout the country in 2009, but again no funds will be available for further investment in this important area next year.
2. Prize Money
Total prize money will be reduced by €5.4 million or 10.2% to €47.7 million in 2010. This follows on from a €7.3 million decline in 2009, which means that in two years prize money will have fallen by 21% from its 2008 peak of €60.4 million and will now be reverting to 2002 levels. HRI will also apply a reduction in the administration fees (7%) and prize money (3%) for Point-to-Points.
For 2010, the prize money reductions will be applied to Grade 1 races in the National Hunt sphere (novice races down by €10k and open races by €5k) and to Black Type races on the Flat: the Irish Derby and Champion Stakes will be down by €250k each, the Oaks and both Guineas by €75k, other Group 1 and Group 2 races by €15k, Group 3 races for 2yos/3yos only by €12k and for older horses by €2k, and Listed races for 2yos by €2.5k. There will be no adjustment to the base values in all other race categories and the absolute minimum value will remain at its current level of €7000. The number of fixtures to be run in 2010 remains unchanged at 345.
The cost of running will be increased from 0.9% (0.7%/0.2% to enter/declare) to 1.0% (0.8%/0.2%) of the race prize fund to compensate for an anticipated reduction in entry levels, but the overall percentage of prize money to be contributed by owners is still forecast to fall to a new low of 25%. All other HRI charges on owners will be frozen for the third consecutive year.
3. Pay Cuts
Pay cuts averaging 6% will be applied to staff employed by HRI, Tote Ireland, HRI Racecourses Ltd and Irish Thoroughbred Marketing. The cuts will be made on a tiered basis, ranging from no drop at the lower end of the scale up to 12% on the highest levels of salary. Additionally, central administration overheads will be reduced by 19%.
4. Racecourse Support Schemes
HRI will also reduce by 12% overall its direct financial support for a number of racecourse support schemes (these include the winter racing grant, sponsorship incentive scheme and big screen support).
5. Grants to Industry Bodies
All grants paid directly by HRI to industry bodies such as Irish Thoroughbred Marketing, RACE, the Irish Equine Centre, the Blue Cross, the Order of Malta, the Irish Farriery School and the Irish Horse Welfare Trust will be cut by 6% compared to their 2009 levels.
6. Integrity Costs
Savings of 11% are being sought from the Turf Club in relation to the integrity costs, with the savings to be achieved from greater efficiencies rather than reduced level of activity.
HRI Chairman, Denis Brosnan added "Horse racing and breeding is a genuine Irish success story. It is one of the few activities in which Ireland is a world leader. It provides 15,500 jobs in rural Ireland, whilst generating significant exports and inward investment. In 2009 three of the top four horses in the world were trained in Ireland and for the nineteenth consecutive year, an Irish based stallion will be the leading sire in Europe."
Mr Brosnan continued, "However, all of this is in danger now due to the absence of long term security of funding for the industry. There are clear signs that, with the combination of the series of budget cuts and the removal of the stallion tax exemption, we are seeing horses and investment moving to other countries, particularly France, with a consequent loss of jobs. These countries have secure funding mechanisms, directly linked to their betting industry. In 2002, the Irish betting industry turned over €1 billion and generated €68 million in duty for the State. Today, the same Irish betting industry turns over €5.5 billion but only generates €30 million in duty. The effect of this anomaly is that the horse racing industry is now dependent on direct State funding drawn from the same pool as health, education and social welfare. This is an unnecessary and unsustainable position."
Denis Brosnan concluded "HRI’s request to Government is simple. Put the funding structure of our industry on a secure basis and we will continue to give you a world class industry with thousands of rural jobs. Fail to do that and one of the few genuine Irish success stories of recent years will disintegrate before our eyes."
Originally Posted by Sheikh
10k for the Galway plate and leave the National alone
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