RECENT figures released by Horse Racing Ireland display a positive set of industry indicators for the year, with improvements across almost all sectors. This is very welcome news.

We are very cognisant of the fact that none of this success could have been achieved without the tremendous support of our Government and former governments through the Horse and Greyhound Racing Fund.

Ireland is a small country but we have always punched well above our weight.

We are the third largest producer of thoroughbreds in the world and home to the champion sire every year since 1988.

The racing and breeding industry is worth €1.1 billion to the Irish economy annually. After cattle, it is the second most valuable livestock sector in Ireland.

Tens of thousands of people are employed both directly and indirectly within the industry.

Four out of five Irish people consider horseracing as an important part of their culture and heritage. And 78% of Irish people feel proud when an Irish horse or jockey wins a big race oversees.

These are all very positive social and economic indicators. Taken at face value it would appear that our industry is both flourishing and vibrant. In many cases, it is.

However, there are a number of anomalies that have appeared within the last 12 months that threaten to destabilise the economic engine of our racing and breeding industry.

I refer of course to two new phenomena which have firmly established themselves in the equine dictionary, namely Brexit and polarisation.

BREXIT THREAT

A hard Brexit could have serious implications for agricultural trade particularly affecting the long-standing tripartite agreement between Ireland, Britain and France.

The potential for trade tariffs, new taxes, border controls and new customs procedures will have a detrimental effect on our ability to trade with Northern Ireland and Britain.

The European Commissioner for Economic and Financial Affairs, Pierre Moscovici, on a visit to Dublin last week did little to allay our concerns.

It is imperative that our Government and all the political parties vigorously negotiate a robust agreement within Europe which will help to minimise restrictions to trade and the free movement of Irish bloodstock.

We operate in a free market and market forces are determined by the laws of supply and demand. However, the fact is we are producing far too many foals.

The market place is still very buoyant, albeit selective, at the top end where quality, pedigree and performance will always command a premium.

The breeders at the middle to the lower end of the market have the added headache of intense competition, a significant rise in the numbers of horses catalogued, poor clearance rates and the reality at the lower tiers of the market that demand is well below the level of supply.

Many factors affect trade and some are outside the control of the bloodstock industry. However, one should not have to learn this harsh lesson continually through the pocket. Breeders, both flat and National Hunt, seriously need to evaluate the viability of their broodmare bands if they are to continue to prosper in such a difficult, discerning, and polarised marketplace.

PRIZE MONEY

This year will see a record high in prize money available in Ireland at €60.4 million. People might wonder why breeders are so concerned about prize money on the track in Ireland. It can seem many removes from the foalings and coverings that will be keeping us busy for the next couple of months.

Since 2014, the ITBA has been working to make the case, with our fellow associations, that, breeding needs a vibrant racing industry in Ireland. It is both the showcase for and source of our best product.

Minister Noonan listened and has followed through on his three-year commitment to uplift the Horse & Greyhound Racing Fund by €6 million in each of those years. I have to include here our heartfelt thanks for the constant enthusiasm of Deputy Martin Heydon for our industry, and his work, as well as the cross-party support from Fianna Fail.

We are grateful for that and the positive performance metrics issued by HRI earlier this month showing that the investment is paying off.

The most critical - and most stubborn to move - measure is that of owners, without whom none of us would be in business today. Finally, in 2016, even that number started to move in a positive direction. But we could be delivering so much more, especially to the heart of rural Ireland.

This year I am pleased to say that the Department of Finance’s Tax Strategy Group is going to review the 1% betting duty which has applied in Ireland since 2006.

Were this to be brought up to 2% or 2.5% - still amongst the very lowest in the world – and if it is linked to the racing industry, it would be transformational for every part of the industry – for the Irish Equine Centre, for Irish Thoroughbred Marketing, for our racecourses, our staff, jockeys and trainers.

Our industry has so much to offer in terms of rural economies and national prestige but, as we move to a more urbanised society, we can never take political support for granted or come across as entitled.

On our merits, and based on resources raised from betting turnover, we can achieve a secure and sustainable funding model. We have a strong economic case to make and must continue to make it.