Mr. Brian Kavanagh:

The last question Deputy McConalogue asked was why the rate is not based on the actual stud fee. From our point of view that would be an administrative nightmare because, like any business, a number of different arrangements are entered into by breeders. Some breeders own both the stallion and mare, so they are paying no stud fee. Some get involved in things called foal share whereby they pay half the stud fee and the stallion owner and mare owner agree that they own half the subsequent foal. There are free return arrangements if a mare has not gone into foal the previous year for some reason, and there is the normal haggling that breeders will have with each other over a nomination fee.

Therefore, for a relatively small proportion of the overall cost of producing a foal, to get into each individual transaction would be administratively difficult. The changes we made in 2011 to the foal levy bands have resulted in the difference between one band and the other being approximately €50, so we are not talking about a major issue. We feel that a 99% compliance rate is acceptable. We are required by legislation, including a statutory instrument, to pursue any unpaid levy. Generally, however, we are able to do that through negotiation, discussion and payment plans.