Clare Daly (Dublin Fingal, Independent)
Link to this: Individually | In context | Oireachtas source

7. To ask the Minister for Agriculture, Food and the Marine the steps he will take to amend the foal levy scheme to make it more equitable. [12345/17]

Clare Daly (Dublin Fingal, Independent)
Link to this: Individually | In context | Oireachtas source

The question relates to the Minister's plans, if any, to amend the controversial foal levy. During the week, the Joint Committee on Agriculture, Food and the Marine heard from Mr. Brian Kavanagh, CEO of Horse Racing Ireland, HRI. Every person, Deputies from all parties and none, expressed concerns at the foal levy. It is the subject of court proceedings. Maybe a bit of leadership from the Minister's Department in bringing about change might be a better way of resolving what is an issue for people throughout the country.

Michael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

HRI is a commercial State body established under the Horse and Greyhound Racing Act 2001 and is responsible for the overall administration, promotion and development of the horse racing industry. The current foal levy scheme, which was introduced in 2000 on a statutory basis, applies to all thoroughbred foals registered in Ireland. The foal levy is calculated with reference to SI 735 of 2011, which is the governing legislation.

HRI's foal levy committee reviews the rates, bands and structures of the levy annually and has also considered potential alternative methodologies to calculate the levy due. It has concluded that the current banded or tiered approach represents the most equitable and appropriate way of securing the vital funds needed for the breeding sector. The majority of foals registered fall into the two lower bands of €35 and €50 and there is a very high compliance rate of 98.3%.

Clare Daly (Dublin Fingal, Independent)
Link to this: Individually | In context | Oireachtas source

Some of these issues were discussed at the committee. The high compliance rate is linked not to the fact that people believe the system is fair but that they cannot register their foals with Weatherbys unless they pay the foal levy and this is the point that is made to them. At the heart of the issue is the bizarre scenario whereby people pay the stud fee based not on the actual price they pay but on the advertised price. This does not exist anywhere else. People find it incredibly inequitable. They are not saying they do not want to pay anything. They have done calculations which show the small owners and breeders are being most hard done by.

When we raised it at the committee meeting, we were told it would be an administrative nightmare to change it. That is utterly ridiculous. Weatherbys administer it. It already receives documentation from everybody who wants to register their foals. Why not add a document which gives the stallion fee and shows the amount of foal levy paid? It is perfectly simple. Every other business can do it. The excuses being put out are not valid. People want to know what initiative the Minister can take to break the logjam.

Michael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

As the Deputy said, the matter is still before the courts. Nonetheless, I do not want to hide behind that in so far as possible. Approximately 12,000 thoroughbred foals are born every year. The alternative view suggests that, rather than the nominated fee, HRI should be able to operate on the basis of the actual fee. It would be difficult administratively. For example, what is the fee in the unusual circumstance in which the stallion and mare are owned by the same person? What is the cover fee or registration fee in that situation? There are so many different permutations in the context where no fee is paid.

The funding secured from it is put to very good purposes. It funds the Irish Equine Centre, the Irish Thoroughbred Marketing Service and the Irish Thoroughbred Breeders Association. There is a high compliance rate. In recent years, the HRI foal levy committee has introduced a broader banded system in order that the majority of foals born are in the lower fee category. There has been progress. I do not like to see such matters before the courts. I wish they could be resolved. The high level of compliance suggests the vast majority of people find the situation reasonably satisfactory, notwithstanding that nobody likes to pay anything.

Clare Daly (Dublin Fingal, Independent)
Link to this: Individually | In context | Oireachtas source

The Minister, and Deputies from all parties and none, know well that is not the viewpoint on the ground. It is not good enough that the Minister abdicates responsibility to the HRI foals subcommittee or to the courts. The judge who is considering the matter is considering the fact it is a matter of such public importance that he is considering referring a case stated to the Supreme Court.

Given that we know there is disquiet across the board - all the Fine Gael Deputies here will confirm that - and in view of the fact that there is a problem at which the courts are looking, would the Minister be prepared to sit down with interested parties and discuss a fairer alternative to this situation? Is the Minister aware of the submission of any falsified documents on these matters with regard to prices? The way it is done now is very convoluted but the solution is quite simple. An invoice that shows the fee actually paid can be used to determine the levy. I do not know how in God's name is that an administrative nightmare? Shopkeepers and everybody else seem to be able to manage that. Limited and all as it is, I believe Horse Racing Ireland could manage that also.

Michael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

This entire process was reviewed in 2011. The outcome was that the number of bands increased from six to 11. The majority of registrations are now costing between €35 and €50. In the context of a thoroughbred foal, I do not believe that is an exorbitant amount. As the Deputy said, the matter is before the courts and it would be preferable if it was possible for both sides to find some middle ground. There is little point in having a statutory board with responsibility in respect of this area if I was then to delve into the middle of the situation to take on the duties the board is statutorily obliged to carry out. There is a sub-committee of that board and it has dealt with and reviewed the matter. I do not see any immediate role for me, as Minister, to intervene in that matter.

Clare Daly (Dublin Fingal, Independent)
Link to this: Individually | In context | Oireachtas source

They say they are only implementing the statute that is there, so they are only putting it back onto the Minister.

Michael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

It is open to the board, as it did in 2011, to review the matter further.

Andrew Doyle (Wicklow, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Or a recommendation could be made to have one.

Michael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am not aware of any falsification of documentation. If Deputy Clare Daly is aware of falsification, however, she should bring the matter to the attention of the appropriate authorities.