Catherine Murphy (Kildare North, Social Democrats)
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32. To ask the Minister for Agriculture, Food and the Marine further to parliamentary question No. 116 of 12 November 2015, whether he recognises that the thoroughbred foal levy is regressive in nature; consequent on this recognition, and taking into account his assertion in the former parliamentary question that it would be impractical to calculate the levy on the value of the foal or on the actual fee paid, if he will re-examine the design of the levy in order to find a new method of incorporating greater progressivity; if not, the reason; and if he will make a statement on the matter. [41390/15]

Simon Coveney (Cork South Central, Fine Gael)
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Horse Racing Ireland (HRI) is a commercial state body established under the Horse and Greyhound Racing Act, 2001 and is responsible for the overall administration, promotion and development of the horse racing industry. The current Foal Levy scheme, which was introduced in 2000 on a statutory basis, applies to all thoroughbred foals registered in Ireland. The Foal Levy is currently calculated with reference to SI 735 of 2011 which is the governing legislation. 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.

The Foal Levy is not regressive in that a higher percentage of income comes from the top band – 27% of income in 2014 came from 8% of foals while 30% of foals in the lowest two bands contributed only 7% of income.

HRI have informed me that it would be impractical to calculate the levy based on the value of the foal as the value of the foal is only determined at point of sales and many foals are not sold through the sales ring.

HRI’s Foal Levy Committee reviews the rates, bands and structure of the levy on an annual basis and makes recommendations following this review. Any formal alternative proposal to the current levy should be sent to the Foal Levy Committee for their examination.