MINISTRY OF AGRICULTURE AND FISHERIES.

NATIONAL STUD AND FARM, TULLY, CO. KILDARE (IRISH FREE STATE).

The National Stud was established in January, 1916, as a result of the acceptance of an offer by Colonel Hall Walker, M.P. (now Lord Wavertree) to present to the nation his entire Stud of valuable thoroughbred stallions, mares, etc., together with the live and dead stock, furniture, &c. at his breeding establishment at Tully, County Kildare, Ireland. A condition of the gift was that the Government should purchase the actual property. The offer was accepted by the Government, the price paid for the owner's and tenant's interests in the estate, which consists of approximately 900 acres, being £47,625, and an annuity (present rate £109 14s.) expiring in 1966. (A portion of the property is subject to an annual rent of £840). Portions of the estate were sold in 1917 and 1918 for £705.

The Stud was taken over primarily on military considerations, and is being carried on as an establishment for breeding high class thoroughbreds, the foundation stock of light horses from which the Army obtain their requirements for military purposes. The Stud is under the management of Sir Henry Greer, K.C.V.O.

After making the necessary charges for insurance, interest on capital, depreciation, headquarters and other overhead expenses, there is a net profit of £39,052 7s. 4d. on the year's working, as compared with £9,421 11s. 6d. in 1925. The high profit for 1926 is attributable chiefly to the exceptionally high prices realized on the sale of the stallion "Warden of the Marches" (£20,000) and the "Hurry-on-Ecurie" colt (£18,000). The principal items of income and expenditure were as follows, the corresponding 1925 figures being given :

The valuations of the Bloodstock shown in the Account are arrived at in the case of purchased animals by taking them at cost and charging depreciation on the basis of the individual estimates of life down to a nominal reserve figure. Animals bred at the Stud are valued at a figure equal to service fee paid plus £300 (the estimated cost of rearing an animal), and are

depreciated on the same lines as purchased stock. This system of valuation was adopted on expert advice on 31 December 1917, and was applied to the bloodstock comprised in the Deed of Gift, the original value of which was accordingly written down from £56,008 8s. 9d. to £32,850 12s. 3d. (i.e., by £23,157 16s. 6d.). A valuation of the Bloodstock on the basis of current market values is made by an independent outside Valuer every five years. The last quinquennial Valuation fell on 1 January 1926, when the independent Valuer's figure was £146,250, the relative book valuation being £36,659 11s.

The valuations of farm live and dead stock, and the charge for depreciation of implements, are calculated generally in accordance with the report of the Sub-Committee appointed to consider Farm Trading Accounts (printed as Appendix IV. in Cmd. 1184) as amended by a later report of that Committee.

It is pointed out that the total gross expenditure disclosed by the account includes expenditure of approximately £440 on the upkeep of the well-known Japanese Rock Garden and other ornamental grounds. This expenditure, while necessary to preserve the amenities and saleable value of the Estate, has no relation to the actual operations of the Stud.

The net accumulated Trading Profit to 31 December 1926 amounts to £82,968 2s. 11d., and the cash profits of the Stud have enabled the amounts advanced by the Exchequer (£48,361) for the purchase and equipment of the property to be in effect repaid and after such repayment, there remains an excess of receipts over payments to 31 December 1926, of £27,249 14s. 6d. After making allowance for rates paid direct by the Treasury, and for the various Reserve accounts (which do not represent actual cash payments), there is a net credit balance of £3,362 8s. 9d.

(a) Method of Valuation-see foreword.

(b) The charge for Headquarters administrative expenses is an estimated figure.

(c) Depreciation of Buildings is calculated at 2 per cent. per annum on estimated value. (d) Depreciation of Furniture is calculated at 5 per cent. per annum on cost.

(e) The animals sold (5 mares, 2 horses in training and 10 yearlings) were included in the valuation at 31 December 1925, at a figure of £9,159 88.

(f) The provision made for depreciation of bloodstock during the year is £3,026 3s. (g) Certain horses are leased for racing purposes. The Lessee is responsible for all expenses and the Ministry receives one third of the winnings.

(h) Interest on capital expenditure is calculated at minimum Local Loans. rates ruling when the various payments were made, and on current account at average Bank rate ruling during the period of account.