Concern over end of tax relief for stallion fees

A call was made for the Government to delay the abolition of tax relief for stallion fees until it is fully costed.

Tom Hayes (FG, Tipperary South) said getting rid of this tax relief would have considerable impact on the economy of south Tipperary. "I refer not to Coolmore but to the many small stallion operations that have developed in that part of the country because of the success of the horse-breeding industry."

Speaking during the debate on the Finance Bill, Mr Hayes said "other countries, France and Italy in particular, are putting pressure on the EU because of the sector's success in this country. Is this another case of the Government giving in to the Europeans on a tax relief which has been very successful."

The bloodstock industry had been a great benefit to his constituency. "Before the Bill is enacted will the Government put a hold on its abolition to determine whether there is a real benefit involved to the economy?"

John Dennehy (FF, Cork South Central) pointed out to Mr Hayes that "we are aware that the European Commission was examining the tax relief concerned, but I advise you to look for criticism much nearer to home. Your potential partners are the ones who have made the noise."

Mr Dennehy, who recalled paying 67 per cent in tax in the 1980s, pointed to the huge achievement in reducing it to current levels.

He recalled a saying that "next to being shot at and missed, nothing is quite as satisfying as an income tax refund", and said that despite a major Government campaign people were not claiming tax refunds.

Dinny McGinley (FG, Donegal South West) called for an amendment to include Donegal in the tourism and development tax incentive scheme which was so beneficial to the upper Shannon region. Donegal "is one of the economic backwaters of this Republic. We have lost 12,000 industrial jobs in the last seven years."

The fishing industry was at a low ebb, and "we have the highest per capita unemployment in the country at four to five times the national average".