European Commission agrees to find ways to support Irish horse breeding

THE European Commission has agreed to work with the Irish Government to find a way to continue support for the horse-breed industry but which does not break state-aid rules.

The industry, which employs about 20,000 people and was worth €180 million in exports last year, has been tax free for the past 25 years.

Now following complaints from Britain and Italy the European Commission carried out an initial investigation that found its tax-exemption status was a form of State-aid.

Finance Minister Brian Cowen and Agriculture Minister Mary Coughlan spent 45 minutes discussing the issue with the Agriculture Commissioner Marianne Fischer Boel in Brussels yesterday.

Mr Cowen said they explained that Ireland had built up a world-class industry with high employment thanks to the tax exemption. He argued that without the incentives the business could be lost to US, Japan and Australia.

Ms Coughlan said: “She (Ms Fischer Boel) is very political and a former Agriculture Minister and appreciates the politics of it all.”

Ireland’s horse breeding industry is the biggest in Europe producing about 40% of all foals a year. The industry argues that Ireland has forgone only about €3 million net in tax on stud fees, but the advantages to studs can be huge with a horse like the US born Sadler’s Wells at stud in Coolmore, Co Tipperary, earning about €26 million a year in fees.