It would be run by a new agency of DEFRA who would exclusively look after dog related welfare issues.
The cost of the test would be down to the Govt to decide but I would pitch it at £40 and one licence would be per person, not per dog.
Also, if an entire family wanted to take the test, I would propose it be discounted so an entire family could take the test at just the £40 rate. I don't see any harm at all in incentivising more people to take the test and get to learn more about dog ownership.
With an estimated 6m dog owners in the UK, £40 per test (which I feel is very affordable and reasonable) would raise £240,000,000 which is easily enough revenue to fund and support the new department. So it is self financing, self sufficient and I don't believe excludes anyone from dog ownership on the grounds of price.
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With regards to the BSL there are no current plans to scrap it at the moment.
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My proposal asks for a full repeal of section 1 of the DDA. BSL is a useless, horrible law that protects nobody and makes victims of innocent dogs and owners. If the Govt were to take the proposal and NOT exclude the BSL elements of the DDA, I would distance myself from this proposal and have no part in it.