EU moves to end the tax break for stallion stud fees in Ireland could damage the European racehorse breeding industry as a whole, according to the State's leading bloodstock sales company.
Last week, it was reported that the European Commission had ruled that the tax relief amounted to illegal state aid and should end. However, Minister for Finance Brian Cowen said yesterday the Government had not been told of any Brussels decision.
Eimear Mulhern, chairwoman of Robert J Goff's bloodstock sales subsidiary, told The Irish Times yesterday that, if the tax break is ended, the owners of high quality Irish-based stallions would be likely to move them to the US rather than to locations in Britain or France as the overall market for thoroughbreds in the Americas is very buoyant.
"The American market is very strong at the moment and demand there is very good," she said, pointing out that Coolmore Stud moved one of its leading stallions, Giants Causeway, to its US base three years ago as it was not able to maximise returns from the horse in this State.
She said an end to the tax break would prompt a lot more owners to move their horses, effectively cutting off access to them for racehorse producers in Ireland and the rest of Europe.
Ms Mulhern's father, Charles Haughey, introduced the exemption when he was minister for finance in 1969. She is herself a breeder.
At the Goffs annual general meeting (agm) yesterday, it also emerged that the group is likely to sell a hotel it has planning permission to build on part of a 5.5- acre site it owns close to its Co Kildare base.
Earlier this year, Kildare County Council granted Goffs and oil company Esso permission for a service station, restaurant, hotel and other linked facilities on the site.
Goffs chairman and chief executive Oliver O'Reilly told shareholders at the agm that the company would be likely to sell the hotel element, while keeping the service station and restaurant.
"We're not hoteliers, so the probability is that we will sell it," Mr O'Reilly told The Irish Times afterwards.
