Dáil Éireann Debate, Wednesday - 15 June 2016
185. Deputy Sean Fleming asked the Minister for Agriculture, Food and the Marine His plans to amend the statutory instrument that deals with the foal levy whereby this is payable in respect of a valuation placed on it by the owner of the stallion and not on the actual fee payable in these cases; if this is an equitable arrangement, given that there is no relationship between the levy and the stud fee; and if he will make a statement on the matter. [16099/16]
View answerHorse 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 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.
