Mr. Matt Dempsey:

It is a really interesting area. There are various national schemes being put in place. The complaint was made to Brussels that it was anti-competitive and therefore there is the corporate tax structure. The corporate tax structure at 12.5% suits. Major studs can live with that fairly easily, and it is a bit of an extra administrative chore which somebody can do. However, for small breeders a corporate structure is a different kettle of fish.

I would agree entirely with the Chairman. The sale from yearlings was always fully taxable. It was simply the stallion income that was exempt. When one looks at the existing French schemes and the new British schemes that are being put in place, let alone those of the Japanese and whatever the Chinese will do to try to get into the market, it is a pity that we did not try to take a more structured view as to how the industry might be best encouraged into an international framework.