The Minister for Finance, Charlie McCreevy, has challenged racing's two ruling bodies, the Irish Horseracing Authority and the Turf Club, to merge in return for more money from the Government.

Stressing the need for greater integration in the industry, the Minister told the IHA and the Turf Club: "If you are prepared to make a big and major step, the Government is prepared to make a big and major step so that racing would never have to worry about finances."

Mr McCreevy also emphasised his desire for racing's funding to be put on a "proper footing".

He said: "It may not always be the case that the Minister for Finance and the Minister for Agriculture (Joe Walsh) are so involved in Irish racing. Others in Dail Eireann who become Ministers may not be so favourably disposed towards racing, particularly those towards the left."

Mr McCreevy was speaking at Saturday night's Moyglare Stud dinner where he diverted from a prepared speech to surprise the audience. His comments about an amalgamation of the IHA and the Turf Club were not overt but few in the audience, which included the Turf Club senior steward Gerry Scanlon and the IHA chairman Denis Brosnan, were in doubt as to his wishes.

Saying he wanted to put racing on a financial footing whereby it was not dependant on who is the Minister for Finance or the Minister for Agriculture, he commented: "Various segments of the industry do not seem to realise they are all dependant on each other. I would like more integration between the IHA and the Turf Club." The Minister told the two organisations that if such integration occurred, "there would be a big increase in money. If you move, we move."

Last July, legislation came into being which saw the abolition of on-course betting tax and the reduction of the off-course tax from 10 to five per cent.

Sources suggest the financial carrot which the Government are holding in front of racing could be a large percentage of the off-course betting tax collected.

Minister McCreevy's eye-opening speech came after he said he would not be saying anything controversial, declaring: "I've been in enough trouble this week!"

The Minister added that the person paying through the gates into race meetings is of prime importance. He remembered going racing as a child but said that the numbers of young people now going racing are falling and that the sport will have to adapt and market itself.

The Turf Club, racing's regulatory body, are expected to make an official statement on the Minister's speech today with one official saying yesterday: "We want more information to comment on."

Slaney Native, who made a winning debut over fences at Punchestown eight days ago, will go for the Denny Gold Medal Chase at Leopardstown on St Stephen's Day. "I want to find out how good he is ," said trainer Jessica Harrington yesterday.

"I understand that Alexander Banquet will run in the Denny and the race should answer a few questions.