Oireachtas Joint and Select Committees

Wednesday, 9 December 2015

Select Committee on Agriculture, Food and the Marine

Horse Racing Ireland Bill 2015: Committee Stage

10:00 am

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael) | Oireachtas source

I understand the point that is being made but this is a standard governance arrangement. I will set out the explanation I have and perhaps elaborate on it a little. The legislation ensures all interests of the horse racing industry are represented on the board of HRI. Setting horse racing fixtures is one of the primary functions of HRI and final decisions in this regard need to be ratified by the board. I am seeking to ensure consensus and cannot accept this amendment because it undermines the inclusivity I seek in respect of horse racing in Ireland. What we are saying is that the fixtures committee is essentially a sub-committee of HRI. A sub-committee cannot dictate to the overall committee. It is a little like the set-up in An Bord Pleanála. The main board makes the final decision at the end of the day, regardless of the recommendation coming through. Normally, the board will follow it, and in practically every instance the recommendation from the fixtures committee will, I expect, be endorsed by the overall board. However, there may be some reason in the broader interests of the industry for the board to take a different view. At that point, I believe we should accept that the board of HRI is legally responsible for standing over the decisions it makes. This issue will arise in other cases as well. The sub-committees feed into the board and make recommendations. However, the HRI board is the only body that has full representation of the entire industry and its interests. The board will get recommendations from sub-committees, but those recommendations cannot be binding. If they were, we could have a bizarre situation whereby the fixtures committee would be forcing the board of HRI into a position where it has no wish to be in the interests of the industry. One would have to think of very unusual circumstances where that could be allowed to happen. Ultimately, we are appointing a board that is representative of the entire sector with ministerial appointments and a chairperson. The board will be answerable to the Oireachtas and the Comptroller and Auditor General and so on. Essentially, the buck stops there and the members of the board must have the final say.

I understand the point Deputy Ferris is making. He is suggesting that if the race fixtures committee makes recommendations, because it has examined the issue in detail and so on, these recommendations should be binding. However, let us consider the governance structure around boards and sub-committees in any semi-State or State agencies, for example, Bord Bia. Bord Bia has multiple boards feeding in and making recommendations to the board itself. Ultimately, however, the buck stops with the chairman and the chief executive when it comes to making decisions. That is what we need in this case as well. It is a standard governance model that works.

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