The Turf Club stewards will meet on Monday to discuss the proposal by the Minister for Finance, Charlie McCreevy, that the Turf Club and the Irish Horseracing Authority should merge. A Turf Club spokesman yesterday described the Minister's proposition as a surprise.

The Turf Club's new chief executive, Brian Kavanagh welcomed the Minister's offer of increased funding for racing but said the stewards will be seeking clarification of what the Government want in return.

"The fixed percentage of betting was a Turf Club submission to the IHA five-year plan originally so we welcome any greater long-term funding for racing," said Kavanagh.

He added: "The stewards will discuss the Minister's Moyglare speech on Monday and will seek clarification on where he is coming from as well having talks with other interests."

Formed in 1790, the Turf Club is Irish racing's regulatory body and in the past has not always seen eye to eye with the IHA who have welcomed the Minister's current initiative.

Kavanagh said yesterday: "Since the IHA has come into being there has been a high degree of co-operation between all the various bodies of the industry who have worked together side by side. But what we need now is clarification of what was said."

It has been suggested that any increased money for racing would come from a majority slice of the five per cent off-course betting tax collected, a suggestion that appears to be acceptable to off-course bookmakers. Stewart Kenny of the Paddy Power organisation said yesterday: "Our view is that what the Minister for Finance does with the money he collects is his business." Kenny pointed out that betting on Irish racing contributes only nine per cent of Paddy Power's turnover but said that betting turnover overall had rocketed since the Government's decision to cut the betting tax from 10 to five per cent.