Written answers

Thursday, 12 November 2015

Department of Agriculture, Food and the Marine

Horse Racing Industry Funding

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

116. To ask the Minister for Agriculture, Food and the Marine if he is aware that the thoroughbred foal levy, administered by Horse Racing Ireland since 2000, is presently calculated using the advertised fee of the sire of the foal being registered, and not on the actual value of the foal, nor on the actual fee paid for the stallion in question; if he is further aware that under this methodology, small breeders with two to three mares, who produce up to 70% to 80% of all foals, contribute a proportionately higher foal levy amount on less valuable stallions; that more valuable stallions, commonly used by large stud farms, pay proportionately far less; if this regressivity in the design of the levy was intentional from the outset; if he is considering amending it to make the charge payable more progressive, according to the actual value of the foal and or stallion subject to it; and if he will make a statement on the matter. [39920/15]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The current Foal Levy scheme, which was introduced in 2000 on a statutory basis, applies to all thoroughbred foals registered in Ireland.

The proceeds of the levy are used by Horse Racing Ireland to help fund the Irish Equine Centre, the Irish Thoroughbred Breeders Association and Irish Thoroughbred Marketing. These organisations provide key support structures to the Irish thoroughbred breeding industry.

The foal levy is currently calculated with reference to SI 735 of 2011 which is the governing legislation. This legislation describes the process of determination of the fee and refers to the advertised value of the nomination as having a particular meaning which is “generally applicable for a covering of a mare by that stallion on 15 February in the year prior to the year of the birth of the foal by that stallion.”

It is not practical to calculate the levy on the value of the foal or on the actual fee paid due to the variety of arrangements.

The lowest foal levy band incurs a fee of €35.00, the second band is €50.00. Most small breeders fall into one of these two bands. The highest band, for stallion fees in excess of €30,001.00 is €650.00.

The levy was amended in 2011 and the rates and bands were reviewed at that time by the Foal Levy Committee and a number of additional bands were introduced and the fee applicable for the lower bands was reduced from €39 to €35 and from €77 to €50. To fund these reductions for small breeders the highest band was increased from €615 to €650. In 2014, 7% of income came from these two lower bands while 27% of the income came from the top band.

There is currently a very high compliance level with the Foal Levy scheme and it has been revised from time to time to ensure fairness in its application.

Against this background as outlined, I have no plans to change the current arrangements for the Foal Levy.

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

117. To ask the Minister for Agriculture, Food and the Marine if he is aware that there is no mechanism in place for a refund under the thoroughbred foal levy, should a foal which is subject to it die or become injured; if he will address this anomaly; and if he will make a statement on the matter. [39921/15]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Foal Levy applies to all thoroughbred foals registered in Ireland. There is currently a very high compliance level with the Levy.

The proceeds of the levy are used by Horse Racing Ireland to help fund the Irish Equine Centre, the Irish Thoroughbred Breeders Association and Irish Thoroughbred Marketing. These organisations provide key support structures to the Irish thoroughbred breeding industry.

Regarding foal levy refunds Horse Racing Ireland has informed me that there is a mechanism for granting such requirements. Any request for a refund is considered on its own merits.

Comments

No comments

Log in or join to post a public comment.