Major funding boost for Irish racing - but Kavanagh sounds note of caution

Irish racing was not missed in an €18 billion giveaway 2021 budget but the industry's leading official has sounded a note of caution in welcoming a 14 per cent increase in funding to €76.8 million, noting the ongoing challenges presented by the coronavirus and Brexit.

Horse Racing Ireland's 2020 funding was unchanged at €67.2m, with uncertainty over a no-deal Brexit cited as one of the reasons for the freeze, but on Tuesday the department of agriculture's purse for 2021 was confirmed as having been increased by €179m to €1.8bn.

That prompted some hope that the Horse and Greyhound Racing Fund, of which horseracing receives 80 per cent, would be among those to receive a financial injection.

Brian Kavanagh, HRI's chief executive, confirmed the fillip after a department briefing on Wednesday morning and expressed his belief the industry "can deliver for the country". Nonetheless, he was not inclined to make more of it than necessary.

With racing continuing behind closed doors, racecourses, especially the larger venues who budget for significant income from attendances, remain under considerable financial pressure.

The pandemic is estimated to have cost tracks up to €15m, with HRI's prize-money cuts believed to have primarily been calculated to provide the necessary financial support for the 26 racecourses.

"The increase is obviously welcome and it's in line with our submissions pre-budget, so it will help us tackle the twin challenges of Covid and Brexit," said Kavanagh.

"Those are the two main issues, and to kick on with elements of the five-year strategic plan. In that sense, the increase in funding is very welcome and it reflects a support for the industry. We have made the point that the industry is resilient, and is one that, with support, can come through and deliver for the country after this pandemic.

"But we are facing big challenges – we have to be realistic about that. We were concerned about the challenge of Brexit before Covid-19, which has brought a different set of problems."

HRI: hopes to have a second all-weather facility installed at TipperaryCredit: Patrick McCann (racingpost.com/photos)

Irish racing's capacity for international investment and the fact it is a rich source of rural employment have been two of its strongest selling points during HRI's lobbying of government.

The issue of restoring prize-money, which has dropped by between 30 and 50 per cent for top-level races with minimum value contests of €10,000 falling by ten per cent to €9,000, will now be crucial.

However, Kavanagh would not be drawn on how the money might be distributed, and he said: "We'll look at that over the next number of weeks in terms of framing our budget for next year.

"It gives us the ability to look at a number of different areas. We have published the fixture list for 2021 with an increase of ten fixtures, which in reality will be an increase of 50 fixtures given the disruption this year, so there is a cost associated with that as well."

HRI's strategic five-year plan, which was unveiled on March 4, included an ambition to have a second all-weather facility installed at Tipperary by 2022. It is unclear if that is still a realistic objective, although the development of the diagnostic disease surveillance facilities at the Irish Equine Centre remains a priority.

"As part of the government capital development programme we are keen to do the work at the Equine Centre," Kavanagh said. "As for Tipperary, we will have to look at it. That time frame was written pre-Covid. Having got the clarity of the budget, we will look at it again, but we believe in the strategic plan and we want to see what elements of it we can kick on with in the current climate."

As well as the extension of employment support schemes, another relevant element to emerge from Tuesday's budget, which was unveiled by minister for finance Paschal Donohoe and forecasts that the country will be burdened with deficits of over €20bn for 2020 and 2021, was the extension of the commercial rates rebate.

A number of tracks availed of that over the past six months, and will likely continue to do so now it has been extended. Some tracks may also qualify for the Covid-19 Restrictions Support Scheme.

It provides for a maximum weekly payment of up to €5,000 if a business can demonstrate that turnover has been impacted by up to 80 per cent. It is available for small and medium enterprises whose 2019 turnover did not exceed €2 million.

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