RACING: Irish racing's ruling body appears to be set on a collision course with the country's on-course bookmakers after the launch of their five-year strategic plan yesterday.
Irish racing's ruling body appears to be set on a collision course with the country's on-course bookmakers after the launch of their five-year strategic plan yesterday.
Horse Racing Ireland describe the development of racecourses as the centrepiece of their new plan but one of the methods to finance those developments has immediately drawn flak from the Irish National Bookmakers Association.
Currently on-course bookmakers pay a charge of 0.3 per cent of turnover to HRI. From the start of next year, HRI want to charge 1.3 per cent of turnover with the extra revenue returned directly to racecourses. They say this will keep admission prices afforadable and increase attendance figures.
However, the INBA reacted angrily to the plan and chairman David Power, who earlier this week had proposed a percentage of prize-money be given to the tracks, said the extra cost will end up being paid by the punter.
"It will be passed on, but it's not a question of bookmakers passing it on. It's a question of HRI imposing it. Currently we are carrying the 0.3 per cent but if HRI do this, we will have no choice but to charge the 1.3 per cent," he said.
"We deplore the proposal to reimpose betting tax on punters as betting tax is now obsolete due to the globalisation of the betting market. Courses should get a percentage of prize-money from staging race meetings. Taxing punters is counter-productive particularly when both attendances and bookmaker betting fell in 2002," he added.
HRI's chief executive Brian Kavanagh credited the idea to the Minister for Arts, Sport and Tourism John O'Donoghue who launched the plan in Dublin yesterday.
It is the blueprint for the development of the sport until 2007. Also in relation to racecourse development is a plan whereby HRI will contribute at least €60 million towards a new Capital Development Fund of €100 million. "We have tried to make racecourses the centrepiece of this plan. A vibrant racecourse sector is a fundamental part of it," said Kavanagh.
A central element to the strategy is consistency in finance to the Horse and Greyhound Racing fund and the plan states: "By 2006 the fund will be fully financed from the duty on off-course turnover which will provide continuity of funding for the duration of this plan and beyond."
Another major target is the development of an all-weather racecourse in Ireland. "HRI expects to facilitate the introduction of an all-weather track during the lifetime of this plan," it says, but there are conditions. A new track must be near a major urban area, must be able to stage floodlit racing and must be able to stage National Hunt racing.
Once again the HRI board have pledged to broadcast Irish racing on a daily basis on either a satellite or cable channel as soon as possible and in relation to the Tote, a retention rate of 10 per cent on win bets in small fields will be experimented with this year.
Another controversial part of the strategy is the plan to introduce "criteria" for stallions and mares going to stud. HRI say the breeding sector is producing more than the domestic market or export markets can cope with. It says: "The annual foal population cannot be allowed to exceed the level reached in 2002."
