Written answers

Tuesday, 19 July 2016

Department of Agriculture, Food and the Marine

Horse Racing Industry Funding

Photo of Bobby AylwardBobby Aylward (Carlow-Kilkenny, Fianna Fail)
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758. To ask the Minister for Agriculture, Food and the Marine to amend the legislation governing the thoroughbred foal levy so that the breeder pays the levy on the exact amount paid for the stud fee as opposed to the stud owners advertised fees ensuring the process is more equitable for breeders who pay the trading fee; and if he will make a statement on the matter. [22701/16]

Photo of Bobby AylwardBobby Aylward (Carlow-Kilkenny, Fianna Fail)
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760. To ask the Minister for Agriculture, Food and the Marine his views that it is equitable, under the terms of the current legislation governing the thoroughbred foal levy, that breeders are being forced to pay a levy on money which is fictitious as the stallion owner does not receive said money as the amount paid is not always equal to the advertised fee; and if he will make a statement on the matter. [22703/16]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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I propose to take Questions Nos. 758 and 760 together.

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, which was introduced in 2000 on a statutory basis, applies to all thoroughbred foals registered in Ireland. The Foal Levy is currently calculated, based on advertised value of the nomination fee of the stallion and with reference to SI 735 of 2011 which is the governing legislation.

The levy is collected by HRI, and I am advised that basing the levy on the actual amount paid in a private transaction between two parties would, at best, place a heavy administrative burden on the collection system, and that there are significant questions as to the practicability of such an arrangement. Furthermore, I understand there is a significant volume of coverings for which no fee or a significantly reduced fee is paid. This is particularly the case at the top end of the market where foal shares are common.

HRI’s Foal Levy Committee reviews the rates, bands and structures of the levy on an annual basis and have also considered potential alternative methodologies to calculate the levy due. They have concluded that the current banded/tiered approach represents the most equitable and appropriate way of securing the vital funds needed for the breeding sector.

There is currently a very high compliance with the levy.

Photo of Bobby AylwardBobby Aylward (Carlow-Kilkenny, Fianna Fail)
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759. To ask the Minister for Agriculture, Food and the Marine to amend the legislation governing the thoroughbred foal levy so that the breeder pays a 1% levy on the exact amount received at the point of sale, in place of the current system ensuring that pin hookers and other persons who trade in horses would pay their fair share in supporting the industry as they also use the benefactors of this levy ensuring that breeders do not have to pay out money in July when registering foals and cash flow is very scarce; and if he will make a statement on the matter. [22702/16]

Photo of Bobby AylwardBobby Aylward (Carlow-Kilkenny, Fianna Fail)
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761. To ask the Minister for Agriculture, Food and the Marine if he will establish a working group or commission an investigation into the disbursement of funding raised through the thoroughbred foal levy to ensure that taxpayers' money is being utilised in a fair and transparent manner within the industry, and for the betterment of the industry and those who work within it; to ensure that such a working group or commission has representatives from all sectors of the industry including a number of independent breeders; and if he will make a statement on the matter. [22704/16]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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I propose to take Questions Nos. 759 and 761 together.

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.

The Statutory scheme requires the owner of each thoroughbred foal born in Ireland, requiring registration, to register in the General Stud Book through the offices of Weatherbys Ireland GSB Limited and pay at registration time a levy to Horse Racing Ireland. The actual levy payable is related to the generally applicable (advertised) nomination fee of the foal’s sire and varies between €35 (where the nomination fee is less than €1,001) and €650 (where the nomination fee is in excess of €30,001). Special deals do not apply in calculating the levy payable. In an industry which, at its peak, saw 12,000 foals registered in a year, a levy based on examination of each individual contract/sales agreement would be impractical and would add to overall costs.

Disbursements are made by decision of the Foal Levy Committee of HRI. Bodies such as Irish Equine Centre, the Irish Thoroughbred Breeders’ Association and Irish Thoroughbred Marketing are the principal recipients. The Foal Levy Committee’s recommendations are subject to approval by the Board of HRI and its allocations are published in the audited annual accounts of that body.

The foal levy underwent a full and thorough review in 2011, including meetings with interested breeders and representative bodies. As a result the number of bands was increased from 6 to 11 to have smaller increments between bands. Overall these changes have been well received particularly at the lower end of the market where the lowest levy is €35 and the second levy is €50. The majority of foals registered fall into these two bands. Compliance with the levy is extremely high with overall compliance in the last four years of 98.3%.

Photo of Bobby AylwardBobby Aylward (Carlow-Kilkenny, Fianna Fail)
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762. To ask the Minister for Agriculture, Food and the Marine the way in which the funding collected through the thoroughbred foal levy is distributed within the industry; the percentages of the distribution of funding under the terms of the current legislation; and if he will make a statement on the matter. [22705/16]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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Horse Racing Ireland is a commercial state body established under the Horse and Greyhound Racing Act, 2001, is responsible for the overall administration, promotion and development of the horse racing industry.

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 distribution of the foal levy is determined by the Board of Horse Racing Ireland following recommendations from the Foal Levy Committee. The Foal Levy Committee reviews the accounts and budgets of all grant recipients prior to making any recommendations.

The distribution of the foal levy is published in the Horse Racing Ireland accounts.

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