A SEA-CHANGE in the manner in which Irish race courses are funded was disclosed by Denis Brosnan, chairman of the Irish. Horse racing Authority, when at a press conference held in the authority's Leopardstown headquarters yesterday afternoon he produced the first set of accounts for the organisation which took over the functions of the Racing Board on December 1st 1994.
Although the mechanism for implementation has yet to be finally sorted out with the Association of Irish Racecourses, it has been agreed that individual courses will get a share in the betting levy generated at their meetings. This will be an incentive for them to try and promote fixtures that will not only attract size able attendances but also lure punters particularly the big players.
In the 13 months to the end of 1995, the IHA showed a "surplus" of £545,000 but putting this into perspective is the fact that more than 60 per cent of their total revenue is represented by a Government grant of £7,825,000.
On the positive side, the IHA has found three new sources of finance in its first year. Stake holders fees which previously went to the Turf Club a string of SP Offices of which the first at Leopardstown is up and running and the collection of the 10 per cent betting tax on English racing bets struck on Irish racecourses that previously went to the Exchequer.
The last named could be a size able winner.
A long term loser though has been the Computote. Ever since its introduction no separate accounts had been furnished by the Racing Board but the IHA has reverted to the accounting policy, that existed in the Racing Board from its foundation up to 1985.
In that year the cost of running, the Tote was £1.7 million and that was half the amount raised by the levy on bookmakers.
Last year the Tote cost £3.7 million and the levy was approximately the same as it had been 10 years earlier.
With a highly unpopular hike deductions, midway through the year, the Tote still managed a profit of only 1.6 per cent on turnover. In 1985 it had twice this profit and gave punters back a larger share of their stake money.
Brosnan spoke of his optimism that the new five to 10 year plan for the Racing Industry, which has been the subject of intense speculation, would set the scene for a major transformation in the way the sport is promoted.
He admitted that this document was behind schedule but added "we believe that it is more important to get the whole hearted support of all the various sectional interests and for that reason we have not rushed ahead with it".
Even then I have to be realistic, and accept that changes are going to happen very slowly," he added.
On the question of the new Cork racecourse at Mallow, he reported that the decision has been made to match local funding pound for pound up to a maximum IRA contribution of £2.5 million. "Those involved tell me that they already have pledges for £1.5 million and are confident of reaching the target set," he said.
