Jan O'Sullivan (Limerick East, Labour)
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Question 56: To ask the Minister for Finance the outcome of his meeting on 12 May 2005 with the EU Commissioner for Agriculture Ms Mariann Fischer Boel to discuss the issue of the tax exemption for stallion fees; and if he will make a statement on the matter. [18282/05]

Mary Upton (Dublin South Central, Labour)
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Question 96: To ask the Minister for Finance if he will make a statement on the outcome of his meeting on 12 May 2005 with the EU Agriculture Commissioner, Ms Mariann Fischer Boel. [17390/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 56 and 96 together.

I, along with my colleague the Minister for Agriculture and Food, met the EU Commissioner for Agriculture and Rural Development in Brussels on 12 May last to discuss the Commission's ongoing assessment of the stallion stud fee exemption in the context of EU state aid rules.

At the meeting, I took the opportunity to outline the background to the relief and the development of the industry in Ireland over the past 30 years setting out the importance of the horse breeding industry here in terms of its contribution to employment and economic activity particularly in rural areas. I also emphasised the importance of a strong Irish industry which can compete and be competitive in a European and global context.

I have reported on the discussions to my colleagues in Government and a reply to the Commission's letter of 6 January last has been issued. As agreed at the meeting of 12 May last with the Commissioner, discussions will continue at official level in relation to the Commission's assessment of the exemption.