Horse Racing Ireland has outlined its spending plans for 2016. HRI was allocated €59 million to run the sport next year in the latest Budget by the Government. The HRI board has now signed off on its own budget and has issued a summary of its priorities for investment.

Further increases in prize-money and reductions in administrative costs for owners and trainers will again be top of the agenda. The budget also creates a fund to support education and training across the thoroughbred industry.

Prize money will increase to €56.7 million, up by over €3 million. Minimum race values will increase from €8,000 to €9,000. There will also be increased percentages of prize money for placed horses and payments out to six places in races worth €40,000 or more and to five places in all other races.

Funding for the Irish Equine Centre has been increased by €355,000 to just under €2 million and over €1 million has been allocated for industry development, education and training.

Administrative charges will fall by circa €250,000 equating to 8% overall, the third consecutive annual reduction in costs for owners and trainers following previous annual cuts of 10% and 17.5%.

1. PRIZE MONEY LEVELS & DISTRIBUTION

HRI will increase prize-money by €3.1 million (or 5.8%) next year, from a projected €53.6 million this year to €56.7 million in 2016. This follows a €5 million (10%) increase in prize-money in 2015. The absolute minimum race value in Ireland will be increased from €8,000 to €9,000, with significant increases to other base values.

The key priority has been to increase the values of the lower grade handicaps under both codes so as to target the largest section of the horse population. Some black-type categories have been raised in National Hunt racing to ensure that Ireland's premium races remain competitive internationally in prize-money terms.

An additional €750,000 will be added to the Dubai Duty Free Irish Derby weekend and Longines Irish Champions Weekend prize funds to ensure the best possible international participation, while a special development fund has been allocated to develop international entries in Champions Weekend and Classic races.

HRI will change the distribution of prize-money next year so that placed horses will receive a greater percentage of prize-money (2nd placed horses 20%, 3rd placed horses 10% and 4th placed horses 5% - compared to 17%, 8% & 5% at present). Prize-money will also be extended to five places in all races and to six places in all races with a value of €40,000 or more. This is designed to attract more runners in races which might have historically struggled with small fields and to increase the percentage of horses which win prize-money: so far in 2015, 58.6% of individual runners have won prize-money and the aim is to increase this figure above 60%.

KEY PRIZE MONEY INCREASES

Minimum race value going up from €8,000 to €9,000

Lower grade handicaps (three bottom tiers) going up by €1,000 under all codes

Grade 2, 3 & Listed National Hunt races going up by €2,500

2. NATIONAL HUNT FILLIES BONUS SCHEME & PLUS 10

HRI will provide €100,000 to support the ITBA National Hunt Fillies Bonus Scheme, which has the objective of encouraging the sales of NH fillies and also their being put into training in Ireland. It provides payments to the winning owner of qualified fillies/mares of €5,000 if winning a mares-only maiden bumper, maiden hurdle or beginners chase, giving each owner the potential to win €15,000.

HRI will also continue to contribute £250,000 towards the joint Anglo-Irish 'Plus 10 Scheme' which will see up to 100 bonuses of £10,000 stg paid out to the qualifying winners of all two-year-old races (bar blacktype races) run in Ireland in 2016. There will also be 25 payments available to the first 25 qualified three-year-olds who win maidens in 2016r.

3. REDUCTION IN REGISTRATION CHARGES

Reductions in administrative charges for racehorse owners and trainers will amount to 8%, representing savings of almost €250,000. This follows the 2015 reductions which represented savings of over €500,000. The principal areas of reduction will be in naming charges, racing calendar costs and the elimination of horses in training levies.

4. INDUSTRY GRANTS

Grants of €1,115,000 and €1,275,000 were approved for the Irish Equine Centre and Irish Thoroughbred Marketing (ITM) respectively, both of which also receive funds from the Thoroughbred Foal Levy (€850,000 and €415,000 respectively). ITM will continue to develop international markets for horse exports and inwards investment, as well as increased focus on the recruitment and retention of racehorse owners.

5. EDUCATION & TRAINING

An allocation of €742,000 has been approved for industry training and development, principally for RACE. In addition, HRI has committed to an industry education and training programme of €300,000 which will be implemented throughout the year.

6. POINT-TO-POINTS

Funding of €1.6 million will be allocated to point-to-point racing in 2016, an increase of 10%.

7. NEW RACING SYSTEM

The first phase of the rollout of a new racing administration IT system which is being developed in-house to replace the current legacy system will take place in Quarter 1 2016.

8. STARTING STALLS

An investment of €450,000 will be made in new starting stalls for Navan, Galway and Gowran Park.

9. ECONOMIC STUDY

HRI will commission a comprehensive independent evaluation of the economic value of the racing and breeding industries to the country.

10. RESTRUCTURING

Provision has been made in the budget for once off restructuring costs arising from the enactment of the Horse Racing Ireland Amendment Bill.

Brian Kavanagh, chief executive of HRI, said : "2015 brought in many significant changes including the implementation of our new racecourse capital development programme, the introduction of online betting tax and the announcement of increased Government Funding. In this budget we have continued our commitment to increase prize-money and to reduce costs for owners and trainers. Racegoers and industry professionals will see a significant uplift in the quality of our facilities at tracks through the continuing roll-out of our Racecourse Capital Development Plan in the years ahead, including flagship projects at Leopardstown, Punchestown and the Curragh.”

Brian Kavanagh continued: “HRI is committed to improving prize-money to remain competitive internationally and to attract and retain owners. We are able to deliver the benefits outlined in the budget because of an increased allocation through the Horse and Greyhound Racing Fund, which Minister Simon Coveney has championed, along with his commitment to structural change in the industry. I am particularly pleased to confirm our additional commitment to education and training which will be central to the development of the industry in the years ahead. Increased funding for the Irish Equine Centre will also help to ensure that it can continue its valued work on behalf of the industry.”

The integrity budget and report of the Anti-Doping Task Force Report will be issued together early in Quarter 1 of 2016.

INDUSTRY REACTION TO THIS NEWS IN THE CHRISTMAS EVE ISSUE OF THE IRISH FIELD. ONLINE FROM 8pm DECEMBER 23rd