What is known as the National Stud Farm at Tully, County Kildare, was established as such in 1916. At that time Col. Hall-Walker, afterwards Lord Wavertree, made a present of the stud, that is the stock both here and in England, to the Government which was the British Government of the time, the Government of the United Kingdom, on condition that the Government would purchase Lord Wavertree's interest in the property.
That agreement was carried out and the property with the stock passed over to the British Government. In 1922, the Government here made a claim for the national stud as part of this territory, but the British Government would not recognise the claim at that time on the grounds that the stud was a gift to the United Kingdom and that under the deed of gift it could not be alienated. Discussions went on from time to time from that on, and eventually it came to this that the British Government were prepared to agree that the buildings and the lands were ours but they claimed at the time that the bloodstock were theirs.
In 1935, we again raised the matter that all belonged to us as from the 6th December, 1921, and if there were gifts made in the meantime, these gifts should also come to our side. Discussions took place between representatives of the two Governments, and it was agreed that negotiations be continued by correspondence but these also broke down, and in 1943, we finally made the agreement. It was to the effect that the Government of the United Kingdom on December 31st, 1943, would hand over possession of Tully lands and buildings. The Irish Government would take over, as from that date, the farm equipment and livestock—there was no bloodstock. The bloodstock had been removed, and the Government of the United Kingdom would pay an agreed sum for user in lieu of rent on the Tully premises as from 6th December, 1922.
In actual cost it worked out that they owed us £28,260, and we owed £6,960 for stock and so on, so we got a net £21,300, as well as whatever livestock and farm equipment were there. The intention is that when the transfer date under the Bill approaches, we give the staff who are there a week's notice as our employees, the employees of the Department of Agriculture, because the place has been worked by the Department since 1st January, 1944, and then the company will take over all the existing staff or such of them as the company will have work for, which I have no doubt will be the whole lot, and then the company are enabled by the memorandum of association to make provision for any terms they may wish to lay down for their employees with regard to retiring gratuities, pensions, etc.
It will also be possible for the company under these articles to provide for the services of the staff under the Department since January 1st, 1944, as being services with the company in case they are drawing up any scheme of superannuation or gratuities. The farm there comprises an area of 871 statute acres, and when it was taken over on January 1st, 1944, it was being run by the Department of Agriculture in England, and we, having taken it over on January 1st, without any bloodstock, have run it as an ordinary farm since, making the necessary arrangements with regard to repairing paddocks and buildings, so that it can be used as a stud farm as soon as the company is set up.
A great deal of useful work has been done during this last year and a half and it should be possible at any time now to commence with the purchase of bloodstock. The Government decided at an early date that Tully farm should be used as a stud farm, as a national stud. Various suggestions have been made to the Government in the Press and elsewhere for using this farm for many other purposes, but we think on the whole it should be used as a national stud. Secondly, it was recommended by me to the Government that it could not be properly run by the Department directly, and the Government agreed with that.
Preparations were made for the legislation which is before the Seanad in this Bill. A public liability company will be formed to take possession of the national stud farm which will be financed by State funds. Senators will have noticed in reading the Bill that this company will also be empowered to carry out special schemes for improvement of thoroughbred horse breeding. Senators will note that the Department has schemes for horse breeding which apply only to the breeding of hunters and heavy horses. We consider that these schemes are satisfactory but we have never had any schemes for the breeding of high-class blood horses, and up to this that matter has been left entirely to private enterprise. I am satisfied that there is no necessity for a State owned stud farm as far as the present scheme of the Department are concerned. Under the present scheme we have to purchase animals and sell them to owners throughout the country for the breeding of hunters. Having gone into this matter fully I think we should continue that. We would never breed that type of hunter on a special farm. They are better when they have finished their racing careers because what we are looking for there is confirmation. We do not need any pedigree horses with sprinting blood in them or anything of that kind. We would continue the schemes under the Department and the national stud will be a separate matter altogether. It will be for the improvement of the very high-class blood horses. It can be made, I believe, the medium of valuable assistance and encouragement for the thoroughbred breeding industry generally. It will ensure that the services of the best class sires will be made available to small breeders.
In the Dáil, great concern was expressed for the small breeder. There is a good deal in the point, because the big breeder is able one way or another to get the services of the best stallions, but the small breeder is not in a position to do so at the moment. To that extent I think the national stud should favour the small breeder. I do not think we should undertake at all that it should be exclusively for the small breeder. Certainly it should give him preference. A big fee is charged for the services of high-class sires, and with most of them standing outside the country, it is made almost impossible for the small breeders to get a good stallion even though they have sometimes very good mares. If the mares were mated with the best stallions they would, in all probability —although nobody can be dogmatic, I believe, about breeding—produce from time to time very good animals. There is a feeling that the number of really good horses in this country is going down. That would be a great misfortune, because we have a good name all over the world for horse breeding. If, during the coming years, we fail and our numbers go down markedly, it might mean that buyers who are coming here at present might cease to come as it would not be worth their while. I think we are justified in making every attempt to keep the horse-breeding industry going as we did in the past. These are the main reasons for the establishment of a national stud here.
The next point that arises is how the stud should be run. It was suggested by various people to me that it is not the sort of business that a Government can interfere with, because it is a business proposition and therefore we should sell or lease the national stud farm to a private individual or a number of private individuals or a syndicate of breeders. I do not favour that because I do not think we would have achieved anything if we did. The object is to help breeders in general, not a syndicate. I do not think Senators will advocate that we should have done that and therefore I do not want to labour the point too much. The next point is that if it is not a company run by private enterprise then it appears to me only two alternatives are left, that it should be run directly by the Department of Agriculture or through a company as proposed in this Bill. The British Government did run it directly. They appointed a director and he usually had a committee of management of either two or three to advise him, but they were only advisers. As far as I can gather the whole concern was run by the Department of Agriculture, much as we run one of our agricultural farms. I do not think that that would be satisfactory in our case. It was a very small item in the activities of the Department of Agriculture in London, but I am afraid that here it would be a rather big thing and would not succeed as well as if it were divorced from the Department, at least by interposing a company. I do not know anything about horse breeding. As far as breeding of thoroughbreds or high-class racing horses is concerned the technical members of my Department admit to me that they do not know anything about it. Their training would help them to be as good experts as there are in any other country in the breeding of cattle, pigs, sheep, or even ordinary horses.
The breeding of race horses is a very technical and very speculative business, and for that reason is not at all a suitable one for the Department of Agriculture to engage in. The people doing so must have a great deal of knowledge and be in a position to take a chance as it were. A Government Department is not inclined to take a chance that this particular management must take. It would be admitted by all who know something about horses that if the proposed company buys say six hunters and one turns out well, they will have succeeded as well as nearly any other stud management. That is the sort of thing that a Department can hardly do. A Department can hardly take a chance, On the whole I think it better to have a company set up. It will of course be a non-profit sharing company, that is the men on the board will not benefit by any profits that are made. They will only hold one share out of the 250,000. It is possible under the Bill to pay them directors' fees, but they cannot profit from any profits made by the company. Any such profits will go to the Minister for Finance.
Broad policy will be laid down by the Minister for Agriculture. In defining broad policy, I should like Senators to realise that I would not, for instance, be in a position to interfere with the mating of mares. The company will have to decide that for themselves. They will have to decide what mares are best for the particular stallion concerned, and matters of that kind, but if I were to say to them, for instance, that I thought they should provide stallions at certain centres outside the Tully Stud, that it would be very convenient for breeders in the West to have a stallion standing there for the season rather than expect Western owners to send brood mares to the Curragh, or if I were to say that I thought that they had some horses to spare and that they could sell some of these stallions outright to certain owners at reduced prices—these are the things I mean by broad policy. I would be able to direct policy in that way but not to interfere with the day-to-day working—to say the particular stallion that they should buy, what they should pay for him, or the particular mares which they should select for nomination. That would be a matter for the company and the manager. There might be a scheme for the leasing of stallions. There will necessarily be, as time goes on, a scheme for the leasing of young horses during their racing period. I do not think it would be advisable for the stud company to race these horses themselves. I have no idea of what the system will be but they will have to adopt some system of leasing young horses for their racing career. They will have an option on them so that when their racing career is finished they can claim them for stud purposes. There may be other schemes. I mention some only for the purpose of distinguishing broad policy, in which the Minister would direct the company, from day-to-day working. We do not direct such companies really. In most cases we call in the directors and discuss matters with them. If we see that they have no strong objection to our suggestions, we say that it might be as well to go ahead with a scheme of that kind.
The general framework of the Bill is the same as that of some other Acts which have already passed the Oireachtas, such as the Industrial Alcohol Act and the Sugar Manufacturing Act. The principal features of the Bill are: a provision enabling the Minister for Agriculture to procure the formation and registration under the Companies Acts, 1908 to 1924, of a company to be known as the Irish National Stud Company, Limited, whose principal object will be to take leases and licences of the national stud farm and carry on the business of stud farming. The Bill vests the property in the Minister for Agriculture and he will in turn make leases or licences of the property to the company. Then there are arrangements for financing the company. The company will have a capital of £250,000 which will be subscribed by the Minister for Finance. All the shares will be held by or in trust for the Minister. The company will have power, as well, to borrow a certain amount of money with the consent of the Minister for Finance after consultation with the Minister for Agriculture. They will have power to borrow certain sums, not exceeding £100,000 or not exceeding the amount of the capital not called up.
There are other smaller items with regard to the buying of land, etc., and then the matter which I mentioned already with regard to the specific schemes which the company might be asked to undertake. There was one matter about which, I was asked and I might anticipate some Senator, who may raise it again. I was asked whether it was necessary to provide in the Bill for the acceptance of donations or bequests of bloodstock from private persons or gifts, grants or loans from the Racing Board. It is not necessary to put such a provision in the Bill. Suitable provisions will be put into the memorandum of association of the company so that if they are asked to accept gifts of that kind they will not have to refuse; they will be able to accept them. I would recommend the Seanad to agree to the Second Stage of the Bill.