HORSE RACING Ireland yesterday detailed significant budget cuts for 2009 that include a seven per cent cut in prize money as well as pay freezes for HRI staff and cost-saving measures across the industry.

They are part of a dramatic reaction by racing's ruling body to last month's budget which saw the government reduce their support to the sport by over nine per cent to a total of €55 million.

Yesterday's developments coincide with Ireland's general economic anxiety and were described by the HRI chief executive, Brian Kavanagh, as "unavoidable in the current climate".

Attention will now turn to HRI's on-going negotiations with the Department of Arts, Sport and Tourism over the provision for racing's future funding. The current strand of the Horse and Greyhound Fund, which financially underpins racing in Ireland, is due to be reviewed by Government in February.

Minister Martin Cullen this week declared he was unsure about the future of the GAA players grants due to the current economic climate, but Kavanagh insisted yesterday that comparisons with the situation in racing is unfair.

"The fund is for an industry that provides significant employment and that is the basis of the funding. I am confident that we are making a strong case to government. The racing and breeding industries make a significant contribution to the economy and are net contributors to the economy," the HRI chief executive said.

Kavanagh declined to elaborate on the nature of the negotiations between HRI and the Department and whether or not any future funding would be on the same basis as when the Horse and Greyhound Fund began in 2001.

However, he did say: "An improvement in the economic environment and the contribution of secure, long-term funding are central to a return in the growth of our industry. We are already working with government to achieve this aim."

Yesterday's announcement outlined a series of cost-saving measures highlighted by a seven per cent cut in prize-money levels for next year down to €56.5 million.

The Irish Racehorse Trainers Association had previously called for no reduction in prize money but didn't appear to be too disappointed by yesterday's news.

"We had asked for prize money to be left alone as it is the fundamental basis for the success of the product at home. We also felt it would be a confidence booster at a time when all businesses need such a boost," said the IRTA spokesman, Jim Kavanagh.

"Having said that in the current circumstances, when things are changing day by day, it could have been a lot worse. And there are positives. There will still be 352 meetings next year, and races will continue to be divided which is very important to owners and trainer," he added.

Brian Kavanagh described the new prize money fund as being a return to 2007 levels. He also said a cut had been well signalled to trainers and owners and added that the reduction had been spread over all racing categories as far as was possible.

There were also details of a curtailment of the Racecourse Capital Development Fund with no new projects to be approved in the short term. Funding for such projects are financed by long-term borrowings and with issues surrounding the future of the crucial Horse and Greyhound Fund still to be addressed, borrowings to cover developments cannot be put in place.

However, work currently going on at Naas, Killarney, Cork and Ballinrobe tracks will be concluded as scheduled.

Kavanagh also detailed a 10-month pay freeze for all HRI, Tote and HRI racecourse staff and a seven-month deferral of the first phase of the National Wage Agreement.

As for possible job cuts, he said: "We see the way forward as concentrating on greater efficiencies rather than cutting staff. We are also introducing a pay freeze. But in the longer term job cuts are not something I can rule out."

A total of €1.3 million is hoped to be recouped in HRI cost savings in central overhead and administrative costs while there will also be a reduction in the extensive marketing campaigns that have been undertaken in recent years.

Funding of the Turf Club's integrity costs is to be reduced by 5.8 per cent but HRI believe the cut can be made up by greater efficiency and not by reduced activity. Integrity services include stewards' inquiry cameras at racecourses.

HRI cuts for 2009

1: Seven per cent cut in prize money, down €4.2 million to €56.5 million.

2: Ten-month pay freeze to all HRI, Tote and HRI racecourse staff.

3: €1.3 million cost savings in central administrative costs and reduced marketing.

4: Funding of Turf Club integrity costs reduced by 5.8 per cent.

5: No new Racecourse Capital Development Fund projects in short term.

6: HRI grants to RACE, Irish Equine Centre, Blue Cross and Order Of Malta frozen at 2008 levels.

7: HRI charges frozen at 2008 levels.

8: Reduced racecourse support schemes, including big screen support.