Racing: Potential conflict between Horse Racing Ireland (HRI) and the country's racecourses appears to have been averted after a meeting yesterday that was described as "full and frank".

The Association of Irish Racecourses (AIR) had urgently requested a meeting with HRI after the recent agreement between racing's ruling body and the bookmakers about a reduced 0.5 per cent levy on turnover. In their five-year strategic plan, HRI had planned to impose a one per cent levy on bookmaker turnover to help finance the redevelopment of racetrack facilities in Ireland. The reduced increase from the original 0.3 per cent levy that was absorbed by the bookmakers left AIR disappointed as they claimed some tracks had budgeted and borrowed for the future on the understanding that there would be a full one per cent in place at the start of 2004.

However, the AIR chief executive Paddy Walsh reported yesterday: "I think it would be fair to say that any heat that had been in the situation has been taken out after this meeting. It went reasonably well and there was a full and frank discussion on both sides."

No firm agreement is in place about making up the financial shortfall that the racecourses believe that HRI should make up but further meetings are planned where a resolution will be hammered out.

"We have accepted the bone fides of HRI in relation to them finding extra income sources and there will be further meetings where these can be fully developed. What is also important is that each side understands the other's position," Walsh added.

The second of the HRI strategic plans, which covers the next five years, has made the developemt of the country's 27 racetracks a priority.