Mr. Joe Christle:

I thank the committee for the opportunity to address it. I will introduce members to my colleagues: Mr. Pat Ryan, president of Irish Amateur Boxing Association Limited, IABA; Mr. Fergal Carruth, CEO; and Mr. Ciaran Kirwan, director. I am Joe Christle, chairman of the IABA's board of directors.

Last week, we published a full and detailed statement, which was provided to the clerk to the committee for circulation along with this statement to assist the committee in its work. I wish to read that statement into the record and we look forward to answering whatever questions members may have after the statement is concluded.

We wanted Billy Walsh to stay. He is the most successful coach in Irish Olympic history and his achievements on the international stage are unparalleled in the history of Irish sport. He brought a level of commitment and dedication to his work that challenged everyone involved in our sport to aspire to excellence. We are grateful, and always will be, to him for all that he has done for Irish boxing.

At the end of February, Billy Walsh made the IABA aware of approaches from USA Boxing. This open engagement is characteristic of the positive working relationship between the head coach and the CEO and chairman, between the employee and his employer. Once Billy had clarified what scale of remuneration he needed in order to stay, our CEO worked with the board of directors to secure the resources required to retain his services.

The board and the CEO work in the best interests of Irish boxing and those involved in our sport in pursuit of our shared goal, namely, the promotion and development of boxing in Ireland. Equally, as directors of IABA Limited, we are bound by all of the responsibilities associated with acting as listed directors including, but not limited to, the legislation protecting employees' rights. In terms of our funding model, as an all-island sport we receive support from the Irish Sports Council-Sport Ireland and Sport Northern Ireland. The directors are charged with overseeing the allocation of funds and the IABA has participated fully in all meetings, submitted all required documents and participated in audits and reviews as requested to ensure that we maintain access to the Government funds that our sport needs if we are to continue meeting our strategic priorities. These include driving high performance, sustaining membership and attracting new participants, especially in those areas in which involvement in sport promotes positive societal benefits as well as health and well-being for the individual.

This year, boxing clubs across Ireland received €389,700 from the sports capital grant scheme. On the current funding side, the Irish Sports Council, ISC, entrusted the IABA with €1,356,713, of which €925,000 was allocated to meet the costs of the 2015 high performance programme. This funding model means that the IABA is almost totally dependent - circa80% level of grants to overall current budget - on the support of Sport Ireland and Sport Northern Ireland for its operating funds. Our clubs, our high performance athletes and our staff appreciate the opportunities to participate and excel that this funding represents.

As directors, we are at all times conscious of our responsibilities in accounting for how these funds are spent. As would be expected of a company, our annual accounts are independently audited by an accountancy firm and have consistently received an unqualified report, which as members will know indicates a clean bill of health. The growth of the sport at grassroots level, the upgrading of many of our clubs' facilities and the success of boxers in qualifying and achieving podium places in major championships is evidence of a sound return on the investment.

Regarding corporate governance, as directors we were cognisant of a significant risk if the terms being offered to the head coach were agreed without due consideration of the consequences for the rest of the staff and athletes involved in the sport. The directors could not afford to enter into a contract with a projected liability of over €1.6 million, especially when the IABA is dependent on Government funds and the statutory agency, Sport Ireland, is not in a position to guarantee multi-annual funding.

This was our position in discussions with the Irish Sports Council, ISC, from the outset, and remains our position, which is based generally on our moral obligations to the individuals involved as well our responsibilities to the sport of boxing and as directors of IABA Limited.

At this point it may be important to remind committee members that the directors are volunteers who receive no remuneration or expenses and so there is no question that these assessments were based on self-interest.

The efforts of ISC representatives to effect a resolution is acknowledged. There is no doubt, however, that the advice and funding offered by the ISC focused mainly on one role, that of head coach. It was difficult to have those broader and longer-term concerns dealt with when the time-critical issue was the threat posed by the offer to the head coach from US Boxing.

The projected salary costs to the IABA of the proposed remuneration package for the head coach was approximately €1.6 million, which, given our dependence on Government funds, creates a long-term liability without matching funds. As a board compliant with corporate governance best practice, it would have been irresponsible, if not reckless, to commit to this level of future liability.

In terms of a resolution, meeting the Minister of State, Deputy Ring, at his request on 11 September allowed the IABA to explain its broader and more long-term concerns. The Minister of State acknowledged our concerns about the risks of negotiating with one employee without regard for knock-on consequences, including but not limited to relativity claims from other staff. It was understood that the risk of losing our head coach had to be balanced against the exposure of the IABA to substantial liability and significant risk if changes to one staff member’s terms were agreed in isolation.

In addition, we articulated the concern that any increased remuneration paid to retain the services of the head coach would adversely impact attempts to secure funds for the other aspects of the development of the sport.

It was the Minister of State’s positive intervention that gave rise to the proposal to switch to a new fixed term contractual relationship. As has been widely reported, the new terms would result in a significantly enhanced remuneration package and would allow Mr. Walsh to benefit from a severance payment to, in effect, compensate him for his switch in status from a permanent to a fixed term

employee.

A meeting was scheduled based on the discussions of 11 September and with the full support of the Minister of State and the ISC. That meeting took place in the Irish Management Institute, IMI, on 14 September with Mr. Walsh and his HR adviser. The terms were discussed and the meeting ended positively. The Minister of State and the ISC were informed immediately that the outcome we all wanted had been achieved.

As is normal in such circumstances formal contracts were exchanged between the IABA's solicitor and Mr. Walsh's nominated solicitor. The IABA's solicitor forwarded a severance agreement contract together with a fixed term employment contract, which was largely based on Mr. Walsh's existing contract of employment. As is often the case, his legal advisers sought certain amendments to both of these contracts, many of which were acceded to by the IABA. These contracts were then returned to Mr. Walsh's solicitor. It was the IABA's belief that all major concerns regarding Mr. Walsh's new fixed term contract had been allayed.

There was no further contact on these issues until 19 October when Mr. Walsh resigned. It is a source of huge regret that Mr. Walsh decided to resign but any suggestion that the directors wanted Mr. Walsh to leave is totally and utterly refuted. Mr. Walsh resigned despite our efforts, and those of the nominees of the Irish Sports Council, to retain his services. The suggestions that he is the victim of a campaign to oust him from his job are untrue. He was the highest paid, permanent employee of the IABA. He resigned his permanent role to take up another offer. We are hugely disappointed that he took that decision but we are now challenged to regroup and look to the future, and that is what we intend to do.

We are grateful to the Minister of State, Deputy Ring, and those who worked with us from the Irish Sports Council-Sport Ireland who tried so hard to secure a successful resolution to these negotiations.

Looking to the future, wehave a responsibility for the entire sport, from volunteers who run our 360 clubs catering for 16,500 members to today's Olympians and those coming through the youth and junior ranks who are our Olympians of the future.

The CEO has a responsibility to all his staff. As directors, we are accountable to the members of the IABA for the decisions we take on their behalf. We are also charged with ensuring that the CEO is supported in his work and for setting him performance measures, which he has reached at every level.

The board is fortunate to have among its directors a solicitor, a fellow of the Institute of Chartered Accountants and a fellow of the Institute of Directors, each of whom offer their time and expertise on a voluntary basis. Since we were appointed, we have adhered to the principles of good corporate governance and have worked hard to bring about changes to ensure the company is fit for its purpose in serving the needs of boxing. These developments include the following achievements: a full revision of its memorandum and articles; a full HR review to ensure compliance with best practice; a new financial management and control system; the appointment of a chartered accountant as CFO and head of HR and the draft of a new rule book 2016.

The board and the CEO have worked very well together and are committed to continuing their work together to ensure the interests of all stakeholders are incorporated in the development and implementation of the IABA’s plans. We are determined that the systems in place which have served so well the ambitions of our medalists and Olympians will continue to evolve and strengthen to ensure future success. We look forward to the opportunity to put to one side the disappointment felt by all parties about Mr. Walsh's decision to resign and to engage with the Minister’s officials and Sport Ireland in laying out plans which they can support to secure the resources necessary to continue on the road to Rio and beyond. We welcome the opportunity to continue our discussions with the Minister and his officials and to resume our work with Sport Ireland in our joint endeavours on behalf of Irish boxing. I thank the committee for its time and attention and we look forward to answering any questions members may wish to pose.