The Kildare Hunt Club (KHC) denied that Punchestown Racecourse is under threat and said that horse racing will continue at the site.

Responding to concerns of the racecourse's management that the companies responsible for running the course may be struck off because of the late filing of accounts, KHC chairman Matt Dempsey said he was surprised and disappointed at this question mark placed over the site's future. "There is no threat to Punchestown or to racing at the venue," he said.

"Until March 2005 a way forward was not possible because of ongoing discussions with the Revenue authorities," Mr Dempsey said. "These have now been completed with a satisfactory outcome for all parties."

KHC owns the racecourse, which is managed by Horse Racing Ireland.

Mr Dempsey acknowledged that there were a few issues, including one regarding two property leases, that had yet to be worked out, but said that KHC was in advanced discussions with Horse Racing Ireland over the disputed leases.

Mr Dempsey said the current lease arrangements "are agreed by HRI and the KHC to be quite unsuitable". The Irish Times reported earlier that Horse Racing Ireland was opposed to requests by the KHC to cancel the leases.

The hunt club said in a statement that it "recognises the value of the relationship with HRI and appreciates the significance of the State funds that have been granted to Punchestown for its development".

"We look forward to a speedy resolution of the very few remaining points of difference between HRI and ourselves."

Punchestown's trading companies include Blackhall Racing, Punchestown Developments and Punchestown Enterprises. Combined they made an estimated €400,000 profit last year.