Jack Wall (Kildare South, Labour)
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Question 80: To ask the Minister for Finance his views on reports that an EU investigation is being sought by British MEPs and the British bloodstock industry into whether tax exemptions on stud fees constitute illegal state aid; his response to this suggestion; and if he will make a statement on the matter. [31431/04]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Commission has been in correspondence with my Department regarding this exemption in response to a complaint made to it in July 2003. I do not know the source of the complaint. I am also aware that the matter has also been raised with the EU Agriculture Commissioner in the European Parliament.

The position is that in April 2004, the Commission asked for information which would allow it to establish whether the exemption may be considered compatible with state aid rules. The requested information, which included details on the number of stallions, price of nominations, the relevant tax brackets, the estimated number of beneficiaries as well as a precise description of the exemption, was supplied to the Commission in July 2004. No further communication has been received from the Commission to date. Ultimately, the issue as to whether or not aid granted by member states in any particular case is compatible with the state aid articles of the EC treaty is a matter for the Commission.