Mr. Adrian Neilan:

The mandate of the Irish Greyhound Board is multi-faceted, encompassing as it does a commercial remit, with 17 individual stadia, a regulatory function and a greyhound welfare dimension. Historically, the greyhound industry has always been a challenging one to manage. There are many interests within it with priorities which have never been easily reconcilable. It is, perhaps, inevitable that a public narrative often emerges that reflects those sectional interests rather than the state of the industry as a whole. The board's duty is not just to manage the industry but to chart a course for it that secures the future for the 10,000 people employed in it.

My chairman has referred to the much more challenging economic environment for businesses like ours which depend on discretionary consumer choices for attendances and Tote income. We compete in a crowded entertainment space. It is important that the committee understand that if the industry is to survive, it must appeal to a younger demographic and a broader audience than is represented by greyhound followers. The sport needs to be further promoted and expanded as popular entertainment and requires the development of additional income streams.

The IGB strategy for the future recognises these commercial truths. Notwithstanding the changed economic landscape compared to the period when significant capital expenditure was undertaken, there is no doubt in the mind of the board that the investment in stadia was necessary and overdue. Greyhound racing must take place in facilities that are modern and comfortable, hence the investment in stadia that meets these criteria. It is also correct to suggest the new facilities created have averted what might have been a terminal decline in the industry. The investment has avoided the type and scale of difficulties apparent in other markets. I believe the organisation of which I am chief executive officer has created the conditions for strong recovery when consumer confidence returns.

It is also important to understand these new facilities unlock opportunities to sell the Irish greyhound racing product internationally. By the end of 2014, the Irish Greyhound Board will have benefited to the extent of €950,000 from sales, equating to approximately €825,000 in net profit from contracts bringing Irish greyhound racing to a new global online gambling audience. By the end of 2017 the board's strategic plan forecasts that this figure, conservatively drawn, will be €1.5 million in net profits per annum from international Tote sales. We will announce details of significant contracts, already signed, later this month. These contracts reflect a considerable focus on online wagering income through what is termed "co-mingling" arrangements which show live Irish greyhound racing in other jurisdictions, allow online access to the Tote and stream live races to betting companies. This new income stream has the potential to grow exponentially and can be transformational for the board.

This new income stream has the potential to grow exponentially and can be transformational for the board.

Our new stadia of which Limerick is a strong example, have become the standard by which international racing is judged. By way of example, industry representatives from five major new markets, namely, India, Dubai, China, Malta and Turkey, have been in discussions with the greyhound board about the Irish model for future racing developments in their respective countries. Two of these have specifically referenced Limerick as a way forward and all these markets present opportunities for Irish greyhound racing.

Some of the largest online and betting companies in the world, with which we are now contracted, are buying Irish greyhound racing, based on its strong regulation but also on the presentation of the product.

Limerick stadium and board headquarters which, contrary to reports, was built on time and under budget, and on which all contracts were procured properly, is a key fulcrum around which the internationalisation of Irish greyhound racing will take place. In fact, from next year onwards, Limerick is to host an extra night's racing. Even in changed economic circumstances, Limerick track has already made a positive cash flow contribution to Bord na gCon, unlike its predecessor, at the Markets Field, which was substantially loss making.

From 2007 to 2012, Bord na gCon has directed a major shift in operational structure and commercial orientation. We have prioritised and centralised certain functions. We have appointed a new director of commercial operations, a new procurement officer from outside the organisation and now an internationally recognised name as director of tote and wagering, to help us to realise the potential represented by online commercial activity.

The board is focused on the changing consumption patterns of customers. The potential for streaming on our app has led to a new commercial partnership with the Irish Independentwhich that newspaper described as transformational. This will widen the audience for greyhound racing in Ireland and will enable readers of independent.ieto watch racing and place bets via the Internet.

Online streaming can redefine the reach and commercial possibilities for Irish greyhound racing both internationally and nationally. Domestically, we operate under very restrictive conditions; an easing similar to the one in Australia would result in greater access to the sport and greater return to the industry and to the Exchequer. I note that my Australian counterpart in Victoria State who operates in a different legal landscape, was able to receive €45 million through a pro-racing funding structure that is set up to benefit greyhound racing in that state, from a population of 4 million people. That occurred through positive strategies on online streaming.

Our 2012 bank position of €22.2 million remained unchanged through 2011 and through to 2013. Forecasts indicate that this position will remain broadly similar in 2013. All bank covenants and conditions have been met in full.

Bord na gCon is concluding negotiations with AIB on a revised bank position that will see bank repayments commence from 2014. Our strategic plan forecasts net bank debt will reduce by 22% by 2017, a reduction of €5 million. This will be achieved by the following: sale of the IGB racing product to the international wagering market; improved return from domestic track operations; and a reduced capital expenditure programme.

Not unlike many organisations, there are issues with regard to the future operation of the board's defined benefit scheme which is in deficit. A range of options for the future management of the scheme has been prepared by the board and its consultants and has been forwarded to the Department for consideration. I refer members to the briefing note circulated.

The Comptroller and Auditor General raised issues in April 2013 about some procurement practices within Bord na gCon in the 2011 and 2012 accounts. We have given detailed explanation on the Comptroller and Auditor General's queries on procurement but would like to stress that even when procurement was not adhered to fully, the purchase of services did not represent bad value for the board. However, since the matter was raised earlier this year, the board has appointed a procurement officer from outside the organisation and new protocols relating to the purchase of goods and services have been introduced.

I wish to take this opportunity to advise the committee members present that Bord na gCon is in control of its business and the future of the greyhound racing. Bord na gCon has developed a costs conscious environment and a cost system that is flexible to the market within which it operates. Bord na gCon is positioned to reap the many rewards being presented by the international wagering market. With these opportunities, Bord na gCon will be in a position to continue to honour the commitments in respect of bank borrowing and other commitments.

There are great possibilities ahead for the Irish greyhound industry. It is exciting and challenging to have the role I have in leading this industry. There are many opportunities to be exploited in the years to come and Bord na gCon is very confident of the ability of the group to earn more from its assets. I have no doubt that a solid formation has been laid for the industry to realise its full potential I welcome any questions the members may have.