Outside investment could improve vet services to farmers

A Co Kildare-based vet has said that outside investment in the veterinary sector could help practices in remote areas ensure efficient services to farmers.

Hugh Dillon outlined what he sees as the benefits of incorporation and outside investment in the veterinary sector in a letter to the Irish Farmers Journal.

They include helping single-person practices in remote areas join together to ensure efficient service to farmers, including for night-time emergencies, he said.

Speaking to the Irish Farmers Journal, Dillon said there are also financial advantages for vets through incorporation.

“For example, repayments on the purchase of a commercial property by a private practice are not tax deductible. But corporate practices can invest in a tax efficient manner.”

Retiring private vets have limited options for disposing of their businesses, he said.

Old age

“They face a muted price for the disposal of their business, compared with what could be achievable with a corporate customer. This leads to many vets working longer into their old age than they might wish and thus limiting openings for younger colleagues who would like to progress their careers.

“Younger vets wishing to buy into a private practice will not receive tax relief on their loans, compared with buying into a corporate practice. Share options for employees, opportunities to buy out retiring vets and better pension funding options are all advantages that a corporate practice has.”

Competition

He added that company/corporate structures would add professionalism to the way a business is run because of the legal obligations on company directors and a range of Company Act rules. Veterinary practices owned by corporations will provide competition and act as in impetus to raise standards, he claimed.

“Incorporation can provide better working conditions for vets, wider access to expertise and more back up cover. But it is not an either/or situation. There is still opportunity for veterinary surgeons to open, develop and run private practices.”

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