Fiona O'Loughlin (Fianna Fail) | Oireachtas source

I thank the Cathaoirleach for selecting this important matter. I also thank the Minister of State, Deputy Heydon, for making himself available to take this Commencement matter in the Chamber. I raise the challenges facing the equine sector in Ireland. It is an issue that disproportionately affects my area of Kildare. I will begin by quoting the foreword of a recent Horse Racing Ireland, HRI, report, which stated:

There are few places in the world with a breeding and racing tradition as rich as that in County Kildare. As well as success on the track and in the breeding sheds, the industry provides over 4,700 jobs in the county and over €420 million in annual expenditure. In addition to being the home of some of the most iconic studs and training establishments in Europe, the county features world-famous racecourses at the Curragh, Punchestown and Naas.

Those are the words of the HRI. It is not just a matter of me trying to make a case for my local area. Kildare, as the Minister of State knows, is synonymous with horse-breeding and has been for hundreds of years. This cannot be taken for granted as without question, the industry in Kildare is under threat. Unfortunately, Brexit has had major repercussions on the sector and many have negatively affected domestic breeders. I recently met Ms Cathy Grassick, chair of the Irish Thoroughbred Breeders Association, with whom the Minister of State has also met, who told me there has been a decrease of 27.5% in the number of mares being visited by UK stallions in the past two years. That is significant. Looking at the figures Ms Grassick presented to me, there is a considerable loss of income to the tune of almost €11 million. That is a colossal income deficit that the industry cannot afford. There are other ancillary industries that would also gain if we were to return to the previous level. They are also losing out.

According to the HRI, Kildare is the second largest contributor to the direct economic impact of breeding in Ireland, with total breeding revenue of 23% of the total, which comes out to approximately €102 million. This revenue is generated primarily through bloodstock sales in an amount of €79 million and nominations of €30 million. There are more than 820 breeders registered in Kildare and leading global bloodstock entities have a significant presence. There is also a significant number of smaller breeding operators which collectively also form an important part of Kildare's local economy. Kildare is home to more than 40 stallions, which is more than any other county in Ireland, including several world leaders, based on the success of their progeny.

We must support this industry. The IRE incentive scheme has worked well, and I thank the Minister for Agriculture, Food and the Marine, Deputy McConalogue, for his help and support in that regard. The HRI is now saying it does not have the funds to continue it, so we have to find them somewhere. There is one mechanism I know Fianna Fáil supports and that needs the support of the Government. We need to utilise the Brexit Adjustment Reserve fund. This fund aims to provide financial support to the member states, regions and sectors most affected by Brexit to deal with the adverse economic, social, territorial and, where appropriate, environmental consequences. I have raised this proposal with officials in the Department who I understand are looking at it in detail. Early indications from conversations with the Minister, Deputy McConalogue, seem to be positive.

Irish breeders are up against time with the UK having already put in place a VAT exemption on mares and with a number of high-profile stallions already announced for retirement in the UK. Mating counts are due to be decided in the coming weeks and the Irish equine sector and breeders are going to be serious losers, with an already serious reduction of UK mares travelling to Ireland, as I have outlined. This is due to Brexit, increased cost and health requirements. Without Government action and intervention, not only will this reduction of UK mares continue but this will now be added to by the ability of Irish breeders to send their mares to the UK with VAT charges. I want to know what is happening. I want to know if the Brexit Adjustment Reserve fund will be used for this purpose. It is important.