Horse Racing Industry Funding

Dáil Éireann Debate, Tuesday - 19 July 2016

Tuesday, 19 July 2016

Ceisteanna (759, 761)

Bobby Aylward

Ceist:

759. Deputy Bobby Aylward asked 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]

Bobby Aylward

Ceist:

761. Deputy Bobby Aylward asked 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]

Freagraí scríofa

Minister for Agriculture, Food and the Marine

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%.

Question No. 760 answered with Question No. 758.

Question No. 761 answered with Question No. 759.