Mr. Brian Kavanagh:

The foal levy is an excellent innovation. People sometimes challenge the amount of money the racing sector gets from the State. We would argue that there is a way in which the industry can be funded without recourse to a State top-up. Indeed this committee, in a previous incarnation, recommended that in a report which was issued in January 2016. It said the sector could be fully funded from betting duty. People may question the funding of the sector. Back in 2000, however, breeders came to the Government and said they were happy for a levy to be levied on foals that are born in this country. However, they wanted the levy to underpin the infrastructure of the breeding industry, as well as underpinning funding of the Irish Equine Centre. That is the main centre that protects the herd against disease, in addition to doing research and other good things. They also wanted the levy to fund the breeders' representative association, the ITPA, and the international marketing agency, Irish Thoroughbred Marketing.

Legislation was introduced by the late Joe Walsh in 1999 and the foal levy was brought in for the first time in 2001. It is based on a determined rate for the stallion fee, which is determined by Horse Racing Ireland in consultation with the stallion masters. It has 99% compliance, so out of 8,500 foals born this year, 8,400 will be fully compliant with the foal levy. That is paid by the breeders on a tiered basis with the lowest rate being €35 up to the highest rate of over €600. In terms of the overall cost of producing a foal and getting it to the sales or on to training, the levy is a relatively small element.

We have looked at this issue over the years. The board of Horse Racing Ireland is advised by a foal levy committee. We made some amendments to the levy in 2011, which increased the number of bands, reduced the level of the lowest bands to €35 and increased the level of the highest bands. The proportion of the levy that is generated by the various bands is as one would expect. The lowest bands, which are stallions covering at a rate of €1,000 or €2,000, are contributing. While there is a higher number of foals in those lower bands, the revenue is lower, and likewise at the higher end. Ms Eade can give the figures.