Mr. Shane O'Dwyer:

The thoroughbred industry has the capacity for growth of 12% to 15%. International bloodstock markets are in good health and we have an export nation that exports 80% of what is produced. If we had a correct funding mechanism in place and were looking for 2.5%, which could generate around €100 million, it would result in reinvestment in the industry. It would go to owners. We need owners to reinvest in the industry. Every €1 that is added to prize money is worth about €8 to the local economy. That is what one is doing with the money. We have to increase prize money.

Deputy Penrose mentioned the United Kingdom. Our most valuable race, based on international rankings, is the derby. It is ranked No. 52 internationally. Approximately 70% of the prize money on offer comes from the entry fees paid by owners. Generally speaking, owners contribute 30% through entry fees. Potential returns to owners are much worse in Ireland than in any of our competitor countries. Therefore, it is important that we bear this in mind.

It was mentioned that charges are too high for owners. To defend Horse Racing Ireland, it has appointed, through Irish Thoroughbred Marketing, a person with special responsibility for ownership. He is examining ownership costs and reducing them. Last year at this forum, this matter was raised and action has been taken in this area.

Deputy Ó Cuív mentioned stallions and the stallion tax. The most important lever in the development of the thoroughbred sector and industry was the stallion tax exemption. This incentive cost the State nothing and encouraged people to stand horses here. It gave broodmare owners the opportunity to gain access to high-quality bloodlines. Since its removal in 2008, the number of stallions fell, as predicted. It fell from 414 in 2006 to 216 in 2014. There have been no new entrants to the stallion business.

Equally important, there has been a shift of the highest quality stallions to the United Kingdom. In 2004, Ireland had seven of the top ten stallions in Europe based on nomination fees. Now we have four. Having stallions here attracts foreign direct investment and it brings in mares. As Mr. Iceton said, the benefits trickle back down to the small breeder.

On the subjects of prize money for smaller breeders, the national hunt and people with one or two mares, we in the ITBA introduced a scheme, a self-help scheme, a couple of years ago to improve the broodmare band in respect of national hunt fillies, encourage breeders to sell their fillies and to have a market for them, and encourage the owner-breeder to put mares in training. With these objectives in mind, we added €5,000 to the prize fund for the winning owners. It has made a little bit of a difference. We talk about increasing this by 10% to 12% by being able to sustain just in excess of 9,000 foals. We want to be able to make sure that we concentrate on quality. Particularly for the small breeder, the better the racing rating, the better the broodmare will be in the covering shed. That is what we are striving for. With initiatives such as those mentioned by Mr. Iceton, with the increase in the prize fund and with the encouragement of the smaller breeders, I hope we will not lose too many people who fall off.