Reports in the Irish media last week suggested that in order to secure more funds, Mr McCreevy will be removing the bloodstock industry's tax exemption, with the imposition of a 12.5% corporation tax on stallion fees likely. Other potential targets may include the tax exemption afforded to artists, the Seed Capital Scheme, and certain elements of the Business Expansion Scheme.

However of all those potentially affected, it is the Republic's horse breeders that have been most vocal, and the industry has reportedly launched a major lobbying capaign to protect its tax free status, first introduced in 1969 during Charles Haughey's time as Finance Minister.

Speaking to the Irish Examiner last week, Irish Thoroughbred Breeders' Association spokesman, Declan MacPartlin warned that the abolition of the tax break will likely have more of an impact on smaller breeders than on the industry giants and super-wealthy breeders who are the intended target of the move.

He went on to add that the ITBA will be calling for a detailed study of the potential effects of the removal of the tax break to be undertaken in advance of any change.