Martin Heydon (Kildare South, Fine Gael) | Oireachtas source

I thank the Senator for raising this critical issue not only for our county of Kildare but for the rural economy, of which the horse racing and breeding industry is such an integral part. It is a key contributor to the rural economy across Ireland. We know that is the case from the 2017 Deloitte report on the Economic Impact of Irish Breeding and Racing, commissioned by the HRI. That report estimated the value of the Irish racing and breeding industry to the Irish economy in 2016 at more than €1.8 billion. The industry employs 29,000 people around the country, directly and indirectly. That gives a sense of the scale and strength of the industry.That is why the Government is so supportive of a sector that is a such key contributor and is very proud to support the horse and greyhound racing fund. I am delighted to have the opportunity to reaffirm to the House, which voted on a motion on that fund last week, my commitment to that fund which is a key economic driver and my support for an industry in which we are world leaders.

Ireland is the largest producer of thoroughbred foals in Europe and the third largest in the world only behind the USA and Australia. There are thoroughbred breeders based in every county and 92% of these breeders own five mares or fewer. Ultimately, that diverse nature and the number of small breeders is the strength of our industry. The value of thoroughbreds sold at public auction in 2019 was €279 million. Britain accounted for some €230 million of this. Some 60% of Irish thoroughbreds born annually are exported and 80% of those are to Britain. That means that Brexit had a very significant impact.

The EU-UK Brexit trade agreement reached in December 2020, which included the Northern Ireland protocol, was welcome. However, the facility to move horses freely without veterinary certification between Ireland and Britain under an agreement known as the tripartite agreement, no longer applies. It is recognised that this has added cost and an administrative burden to such movements. I am acutely aware that smaller breeders, who did not have the economies of scale or the staff resources to handle this administrative burden and cost, were particularly impacted by that.

The European Commission is temporarily allowing transport between Ireland and France under certain rules, until conditions are agreed between Ireland, France and the Commission under which registered horses may travel between the two member states without health certification in accordance with relevant EU regulations. It is expected that these negotiations, which are ongoing, will be concluded by the end of the year.

The Irish Thoroughbred Breeders Association has submitted a proposal for a significant funding allocation from the Brexit adjustment reserve to the Department of Agriculture, Food and the Marine. The proposal is centred on three key supports. First is the development of new and existing markets. As Minister of State with responsibility for new market development, I am keen to see help being given to support that; second, reducing costs and enhancing ease of trade between Great Britain and Ireland; and third, supporting thoroughbred breeders on-farm efficiencies to reduce costs. The ITBA has indicated that the premise of the application is to support Irish thoroughbred breeders as a direct result of the impacts arising from Brexit.

There are significant state aid considerations. State aid requirements are fully applicable to all Brexit adjustment reserve applications. The submission made by the ITBA is currently being considered in this context by my Department. We must make sure we navigate those state aid requirements, which are complex and rigorous. I know many people in the industry and have met so many breeders and this has been raised with me by the ITBA and others. The fact is they have a very strong case about the impact of Brexit. We need to make sure we can navigate those state aid requirements to try to get support to the industry that is very much a bedrock of economic activity in rural Ireland.