Finnish government budget cuts threaten horse racing industry as support reduced by €14.5 million

The Finnish government’s budget cuts are set to impact the horse and harness racing industry significantly. The Ministry of Finance’s budget proposal suggests a reduction of over one-third, amounting to €14.5 million, from this year’s support budget of more than €39 million. If implemented, this reduction could severely affect harness racing and lead to immediate consequences for horse ownership.

The anger from the equestrian sector is compounded by its belief that it contributes significantly more to state revenue than it receives in return. The central organization for the industry, Hippos, estimates that the revenue from harness racing alone, including lottery taxes, amounts to around €60 million. Moreover, the horse industry generates tens of millions of euros in value-added tax and employs over 6,500 person-years, surpassing even Lapland’s tourism sector.

Moreover, the horse industry believes that for every euro invested by the government in harness racing, €2.5 is returned. If this figure holds true, many in the industry view the cuts as misguided. Jukka-Pekka Kauhanen, chairman of the harness racing trainers’ association, stated that these savings could lead to significant losses for the state, threaten livelihoods, depopulate rural areas, and jeopardize the national breed, the Finnhorse.

Stakeholders in the harness racing sector are still trying to influence the budget before its final approval. Timo Kalli, a former member of parliament and current chairman of Porin Ravit Oy, emphasized the difficulty of changing government decisions. He warned that the threat of support cuts could negatively impact prices and demand in the horse market, potentially leading to a perception that many stakeholders might exit the industry. He highlighted the upcoming traditional auction in Ypäjä, where over a hundred harness racing foals will be available, as a critical indicator of the industry’s future confidence.