Varadkar Responds to Parliamentary Questions

Minister for Transport, Tourism & Sport, was answering parliamentary questions on November27th. A number of issues relating to sport were raised including the Sports Capital Programme, tax relief in respect of donations to sporting bodies and philanthropy and sport. The Federation has summarised the responses given by Minister Vardakar.

The questions put to Minister Vardkar in relation to sport came from a variety of T.D’s in particular, Sinn Féin T.D.’s and related in the main, to the Sports Capital Prgoramme. However, the issues of charitable status, tax relief on donations to sporting bodies and philanthropy were also raised. Fianna Fáil spokesperson on sport, Timothy Dooley also concentrated on the current round of the Sports Capital Programme and in particular the criteria being used to assess the applications.

 

Sports Capital Programme

In relation to the Sports Capital Programme, Minister Varadkar confirmed:

  1. A total of 2,170 applications were received seeking €229 million in grant funding in total in respect of project valued at €347 million.
  2. Of the €30 million available €26 million will be allocated to local projects, while €4 million will be allocated to regional/national projects. In doing so he made reference to the fact that some National Governing Bodies would rather the emphasis initially would be on national or regional facilities rather than local and that there were strong arguments in favour of this approach. However, for the moment the scheme is set up with the emphasis on local facilities.
  3. Funding will be allocated on a per capita basis with a weighting to redress any imbalance in previous rounds of the Programme. Minister Varadkar also confirmed that two criteria had been added since the previous scheme in 2008 namely, the sharing of facilities and the receipt of previous government funding with priority being given to those who had not received such assistance previously. In respect of national or regional facilities four additional criteria would also apply being priority as identified by the relevant National Governing Body of Sport, the priority as identified by the Irish Sports Council, the location of the facility in the network of national and regional facilities and in the case of municipal multi-sport facilities only, linkages with the Local Authority Swimming Pool Programme.
  4. He confirmed that there would be bonus points given to applicants who were proposing to share facilities.
  5. There were a significant number of ineligible applications in the main because of the failure to produce satisfactory evidence of the ability to procure the required 15% co-funding
  6. The announcement regarding the grants awarded will issue after the budget and successful applicants will have two years in which to draw down the funds.
  7. Notifications of grant applications will be issued after the budget and in this year; organisations will have two years to draw down fund.
  8. It was the government’s intention to run a second round of the Programme in 2015 that he and Minister Ring were exploring bringing it forward but no decision had been made as yet.
  9. In response to a question as to whether the sale of the Lotto would impact on future rounds of the Programme, Minister Varadkar simply stated that the sale was a matter for the Minister for Public Expenditure but that he could confirm that it would be sold with the proceeds going to the Children’s Hospital provided planning permission was secured.


Tax Relief

The Federation earlier this year made a submission to the Department in respect of the extension of the current tax relief in place on donations to sporting bodies in respect of “capital projects” to “non-capital” projects. This issue together with whether sporting bodies should be allowed gain charitable status was raised. Minister Varadkar responded by saying he felt it was important that sporting organisations secure additional sources of revenue, including private donations. He said that he felt the current relief in place was restrictive in that it applied to donations in respect of capital projects only. However, Minister Varadkar said that the amendment of taxation legislation was one for the Minister for Finance and that he had written to him in October regarding possible amendments that would allow tax relief in respect of non-capital donations to sporting bodies.

 

Philanthropy

Minister Varadkar mentioned that he had made a number approaches to companies and individuals regarding funding for specific projects, at the sports campus or coaching programmes but had little success to date. He stated that it was something he would continue to work on.

Studies detail influence of Sport

The Federation has for the last four years been spreading the gospel that sport does so much more for Ireland than just sport. A number of different pieces of research published over the last few weeks appear to bear that out confirming the role of sport and physical activity in Irish society including, the impact on consumer spending, exercise levels in young people and the continuing obesity challenge.

 

An analysis of consumer spending on Visa cards, shows that Irish consumer spending on sport between May & September was €85.9 million. The analysis conducted by Visa Europe tracked spending across a range of categories such as the amount spent in sporting goods and bicycle stores, summer sports camps and membership fees for sports clubs and gyms.

In total there were just over one million sports related transactions in Ireland over the summer, with an average value of €84.39 per transaction. Sales spiked in August with transactions in a number of categories rising during the month. Sales in bicycle shops rose by 8.1% and purchases in sporting goods stores spiked by 24.9% in August alone. Sport impacting on the economy.

 

Meanwhile, an analysis by Mediaworks shows consumer confidence increased over the three summer months something they are attributing to the increase in optimism due to the bumper summer of sport which of course included Ireland’s successes at the Olympic & Paralympic Games as well as the country’s appearance in a European Football Championship Finals for the first time since 1988. Sport growing optimism may well have a positive impact on the economic recovery.

 

The latest results from the Growing Up in Ireland Study show that, in general, children take reasonably high levels of exercise. The study did find however that children from affluent backgrounds tend to take more exercise than others. However, despite this positive finding the report also states that excess weight and obesity continue to be a problem for young people and is on the increase. The study states that there is a strong link between physical activity rates and excess weight and stresses the importance of developing positive habits in young people as they tend to carry over into adulthood.

The key findings of the study in relation to physical activity and obesity were:

  • 60% of 13-year-olds exercised 6 or more days in the last 14 days
  • Boys were more likely to exercise than girls.
  • 26% of young peoplewere either overweight or obese at 13 years – 20% were overweight and 6% obese.
  • Girls were more likely to be overweight or obese than boys (30% vs. 23%).
  • Relatively few (11%) non-overweight 9 year olds had developed weight problems by the age of 13. However, those with weight problems at 9 years of age tended to maintain them. Just over half who were overweight at 9 remained overweight at 13 with 11% becoming obese.
  • Girls were more likely than boys to maintain weight problems.
  • Children with weight issues were trying to do something about it – 78% of children who were obese were exercising to lose weight (compared to 39% of those who were not overweight or obese).

 

The full report can be read here.

 

Meanwhile, a report from Safefood funded research put the cost of excess weight and obesity on the island Ireland at an estimated €1.64 billion with €1.3 billion attributable to the Republic of Ireland. The study, conducted by University College Cork found that in the Republic of Ireland, 35% of total costs (€398 million) represented direct healthcare costs for example, hospital in-patient; out-patient; GP and drug costs. However, two thirds (65%) of the economic costs were indirect costs in reduced or lost productivity and absenteeism and amounted to €728 million.

 

The full report can be read here.

Socialympics – Irish Paralympians Using Social Media

The Paralympic Games kicked off today! We’ve compiled a list of all the Irish Paralympians who use social media so you can follow their journey in the days and weeks ahead:

ATHLETICS:

AILISH DUNNE (@awesome_ails) – Discuss/Shot Putt 

JASON SMITH (@smyth_jason) – 100m/200m 

MICHAEL McKILLOP (@Mckillop21) – 800m/1500m 

ORLA BARRY (@xorlabarryx) – Discus 

RAY O’DWYER (@RayODwyer) – Discuss/Javelin/Shot Putt 

BOCCIA:

PADRAIC MORAN (@padraicsboccia) – BC1/BC2 Team 

CYCLING:

COLIN LYNCH (@TTworldchamp) – Track – 3km Individual, Team Sprint/Road – Time Trial, Road Race 

ENDA SMYTH (@enda_smyth) – Track – 1km Time Trial, 3km Individual Pursuit, Team Sprint/Road – Road Race/Time Trial

JAMES BROWN (@jbcycling) – Track – 1km Time Trial, 4km Individual Pursuit/Road – Time Trial, Road Race 

KATIE-GEORGE DUNLEVY – (@KatieGDunlevy) – Track – 1km Time Trial, 3km Individual Pursuit/Road – Road Race, Time Trial 

MARK ROHAN (@mark_rohan) – Handcycling – Time Trial, Road Race 

SANDRA FITZGERALD  (@SandieFitz) – Track – 1km Time Trial, 3km Individual Pursuit/Road – Road Race, Time Trial 

EQUESTRIAN

Helen Kearney (@KearneyHelen) – Team Test, Individual Championship & Freestyle 

ROWING

KEVIN DU TOIT (@kedutoit) – Mixed Cox Four (Lead Stroke Seat) 
SHANE RYAN (@ShaneRyan4) – Mixed Cox Four 
SARAH CAFFREY (@SarahCaffrey) – Mixed Cox Four (Two Seat) 
HELEN ARBUTHNOT (@helen_arbuthnot) – Mixed Cox Four (Cox) 

SAILING

Anthony Hegarty (@ant_hegarty) – 3-Person Keelboat (Sonar) 

SWIMMING

DARRAGH McDONALD (@Darragh_McD) – 50m, 100m & 400m Freestyle 
LAURENCE McGIVERN (@LaurenceMcG) – 100m Backstroke 

JAMES SCULLY (@jamespscully) – 50m, 100 & 200m Freestyle, 50m Backstroke

SHOOTING

SEÁN BALDWIN (@SeanBaldwin1) – 10m Air Rifle Standing & Prone, 50m Air Rifle Prone, 50m Rifle 3 Ways  

TABLE TENNIS

EIMEAR BREATHNACH (@mrseimearb) – Singles, TT 1-3 Team 

Report on the future of the Horse Racing Industry published

In January of this year he Minister for Agriculture, Food and the Marine, Simon Coveney, TD, launched a stakeholders’ consultation process as part of a review his department commissioned into certain aspects of the Irish Horse Racing Industry.

As part of that consultation process, the Federation of Irish Sport made a written submission which was provided to Indecon – the successful tenderer to carry out the review – for consideration and assessment.

The Federation’s submission focused on the funding of the Horse Racing Industry with a particular focus on revenue generated via the betting turnover tax and its subsequent distribution. The Federation is of the view that in the interests of equity and fairness the proceeds of government revenue generated through taxation on gambling should be used to provide vital investment to the rest of Ireland’s sporting community in addition to continued support of Horse Racing.

The Indecon Report on the future of the Horse Racing Industry was published by the Department of Agriculture, Food and the Marine on Tuesday and Minister Coveney has indicated that some recommendations in the report may be acted upon as soon as September.

 

Below is a summary of what was contained in Indecon’s report relevant to the points raised in the Federation’s submission:

Section 3 of the report deals with the industry’s funding arrangements.

Executive summary of section 3:

Significant funding challenges must be surmounted to ensure the horse racing industry realises its potential. There are however concerns over the appropriateness and medium term sustainability of funding for the industry unless changes are made.

Our analysis indicates that the main potential source of additional funding is from the betting industry.

There is also a need to focus on maximising sponsorship and commercial income.In reviewing funding arrangements for this sector, Indecon believes it is important to also consider Ireland’s competitive position vis-à-vis:

  • the ease of mobility of betting operators,
  • the price elasticity of demand for betting, and
  • betting tax compliance as it concerns remote betting operators.

 

In addition we believe it is necessary to consider staging of any changes in taxation.

 

Other funding issues include:

  • the  appropriateness of the racehorse industry’s requirements being exactly aligned with betting duty revenues.

 

Indecon’s assessment indicates that, in terms of funding, it is important that sufficient funding is provided to ensure reasonable prize money and to enhance the reputation of the Irish horse racing sector.  Resources are also needed to finance racing integrity services, which are essential to the maintenance of the credibility and reputation of the sector.  The development of racecourses and maintaining the disease free status of Irish bloodstock also require appropriate funding.  In addition, effective international marketing is an important component in realising the economic potential of this unique sector.

 

The dependence on very scarce exchequer resources to the extent which currently exists represents a major strategic vulnerability for the sector given the current state of the public finances.  Indecon therefore believes new sources of funding are urgently required to support the industry and to reduce the industry’s dependence on exchequer funding.

 

Indecon strongly supports additional and sustainable funding for the development of the sector but this must be accompanied by an equal priority to maximise efficiency, effectiveness and value for money.

 

Report recommendations on funding of the sector:

 

1. Measures should be introduced to secure a significant increase in taxation from the

Betting Sector.

2. A multi-annual commitment of funds should be considered to support the development of

the sector.

3. Greater funding certainty should be introduced to support medium term planning for the

integrity services in Irish racing.

4. As betting revenues increase there should be potential to significantly reduce general

Exchequer expenditure other than funds raised from betting taxation.

5. The merits of replacing the Horse and Greyhound Racing Fund should be considered.**

6. All betting operators should be required to obtain a Licence.

7. Taxation should be levied on the same basis on Betting Exchanges and on Remote as well

as on Traditional Bookmakers.

8. Licence Fees for All Offshore and other Bookmakers should be increased.

9. Taxation on betting should be on a place of consumption basis.

10. Rate of betting duty should initially be set at 1%.

11. Rate of Duty should be reviewed after one year.

12. Duty on betting intermediaries should be divided between layers and backers.

13. Effective compliance measures should be introduced based on a careful definition of what

is a betting “event”

 

**Indecon state that they do not believe specific taxes should be ring-fenced for specific functions and that there is merit  in  treating this as general tax revenue and making expenditure decisions on standard criteria.

 

The text of the Betting Amendment Bill was also published within the last two weeks. The amended Bill will extend the existing 1% turnover tax on bookmaker’s activities to remote bookmakers and also introduce a 15% commission tax on betting exchanges.

 

Links:

Federation of Irish Sport Submission

The Indecon Report

Press Release from the Dept of Agriculture

 

Irish Examiner – Taxpayers’ €29m grant to horse racing sector deemed unsustainable

Irish Examiner – Coveney defends €29m-per-year horse-racing spend

Irish Times – Coveney welcomes horse racing review

Irish Times – Going gets tough

 

 

Socialympics – Irish Olympians Using Social Media

This year’s Olympic Games has been renamed by some as the ‘Socialympics’ – never before has the public had such a level access to the athletes and insight into their preparations and experiences leading up to the games.

We’ve compiled a list of all the Irish Olympians who use social media so you can follow their Olympic journey in the days and weeks ahead:

 

Athletics – Badminton – Canoeing – Cycling – Equestrian – Gymnastics – Judo – Modern Pentathlon – Sailing – Swimming – Triathlon

ATHLETICS          


JESSIE BARR (@JessieBarr247) – Womens 4 x 400m Relay  

CLAIRE BERGIN (@BerginClaire) 

BRENDAN BOYCE (@brendanboyce) – Mens 50K Road Walk 

MICHELLE CAREY (@michellec400) – Womens 4 x 400m Relay 

ALISTAIR CRAGG (@alistaircragg)  Mens 5,000m 

JOANNE CUDDIHY (@jojo400) – Womens 400m 

COLIN GRIFFIN (@colingriffin) – Mens 50K Road Walk 

MARIAN HEFFERNAN (@rm_heffernan) – Womens 4 x 400m Relay 

ROB HEFFERNAN (@rm_heffernan)  – Mens 20K and 50K Road Walk 

PAUL HESSION (@phession) – Mens 200m 

MARK KENEALLY (@markk42k) – Mens Marathon 

OLIVE LOUGHNANE (@oliveloughnane) – Womens 20K Road Walk 

CIARAN O’LIONAIRD (@gociaran) – Mens 1,500m 

DERVAL O’ROURKE – Womens 100m Hurdles 

STEPHANIE REILLYWomens 3,000m Steeplechase 

LAURA REYNOLDS (@laurareynolds89) – 20K Walk 

 

BADMINTON

CHLOE MAGEE (@chloenmagee) – Womens Singles 

SCOTT EVANS (@scott_evans1) – Mens Singles 

 

BOXING

PADDY BARNES (@paddyb_ireland) – Mens 49kg 

MICHAEL CONLAN (@mickconlan11) – Mens 52kg 

JOHN JOE NEVIN (@johnjoenevin) – Mens 56kg 

ADAM NOLAN (@AdamNolan12) – Mens 69kg 

DARREN O’NEILL (@darrenoneil) – Mens 75kg 

CANOEING


EOIN RHEINISCH (@eoinrheinischpr) – Mens K1 Slalom 

CYCLING


MARTYN IRVINE (@martyn_irvine) Omnium 

DAN MARTIN (@danmartin86) Road Race 

NICOLAS ROCHE (@nicholasroche) – Road Race 

EQUESTRIAN


AOIFE CLARK (@aoifeclark) – Three Day Eventing 

MARK KYLE (@queenholme) – Three Day Eventing 

JOSEPH MURPHY (@JMurphyEventing) – Three Day Eventing 

MICHAEL RYAN (@DoneganRyanEven) 

CAMILLA SPEIRS (@CamillaSpeirs) – Three Day Eventing 

GYMNASTICS

KIERAN BEHAN (@kieranbehanirl) – Mens Artistic 

JUDO

LISA KEARNEY (@kearney_judo) – Womens 48kg 

PENTATHLON

NATALYA COYLE (@natalyacoyle) – Womens 

ARTHUR LANIGAN-O’KEEFFE (@arthurlok1) – Mens 

SAILING

 

ANNALISE MURPHY (@annalise_murphy) – Womens Laser Radial 

DAVID BURROWS (@olearyburrows) – Mens Star 

JAMES ESPEY (@james_espeyirl) – Mens Laser 

SCOTT FLANIGAN (@470ireland) – 470 

MATTHEW MCGOVERN (@Irish49er) – 49er 

PETER O’LEARY (@olearyburrows) – Mens Star 

GER OWENS (@470ireland) – 470      

RYAN SEATON (@Irish49er) – 49er 

 

SWIMMING

SYCERIKA MCMAHON (@sycerika) – Womens 100m Breaststroke       

BARRY MURPHY (@barry_j_murphy) – Mens 100m Breaststroke        

MELANIE NOCHER (@melanienocher) – Womens 200m Backstroke     

TRIATHLON

AILEEN MORRISON (@aileenmorr) – Womens https://twitter.com/#!/gavontwitt     

GAVIN NOBLE (@gavontwitt) – Mens