Mr. Gerard Dollard:

I am thankful to have the opportunity to appear before the Chairman and other members on behalf of Bord nag Con, the Irish Greyhound Board. I am the chief executive of the board. I am accompanied by Mr. Philip Peake, deputy chief executive and director for events and hospitality services and HR; Mr. John Tuohey, interim chief financial officer; and Mr. Joe Lewins, director of tote, wagering and IT.

As set out in the invitation to attend, the accounts for examination before the committee are the financial statements for Bord na gCon for 2017. However, for completeness of information, since the invitation was issued to attend the committee, the audit of the 2018 financial statements has been completed and they will be published shortly, following the placing of the accounts before the Houses of the Oireachtas. I will make a brief reference to the 2018 accounts before I conclude. The year 2017 was a challenging one for the greyhound industry due to a 22-week disruption at our main flagship stadium, Shelbourne Park, during which 123 race meetings were lost. The operating profit before interest, depreciation and taxation, EBITDA, for the year was €1.67 million, as compared to €3.2 million for 2016.

The disruption to racing impacted on performance across a number of areas, including the tote, food and beverages and attendance income. Overall attendances for all stadiums reduced by 122,000 in the year. A full racing schedule at Shelbourne Park recommenced on 27 June 2017, with recovery for the remainder of the year at a fragmented level. Total food and beverage sales at stadiums operated by our events and hospitality services division were €5.6 million in 2017. This generated a gross profit of €3.7 million. Tote turnover for the year was €15.9 million, with €2.08 million being received in international co-mingling income. The sale of media rights for race meetings generated €800,000 in the year. Total prize money for the year, notwithstanding the reduction in the number of race meetings, was €8 million. The board implemented a 25% increase in prize money race grants, with effect from 1 October 2017.

Progress was also made in reducing the deficit on the defined benefit pension scheme, with a total €1.5 million deduction or reduction in liability being achieved in the year. The sale of Harold’s Cross stadium which was concluded in May 2018 has enabled the board to discharge its long-term debt and provide funding for necessary investment in stadiums and infrastructure. Surplus funds of €5.8 million have been earmarked for a range of areas in the Harold’s Cross business plan for sale proceeds. Works undertaken to date include track improvements and drainage works at Shelbourne Park; the rolling out of replacement hare drive and timing systems to all tracks; a new central racing management system; the upgrading of CCTV infrastructure at stadiums; fire safety improvement works at selected tracks; the upgrading of veterinary facilities at a number of stadiums; and a grants scheme for private tracks for welfare and health and safety improvements.

A report on the financial and economic significance of the greyhound industry by Jim Power Economics was completed in November 2017. Thie report which was an update on a similar report prepared in 2011 estimated that 12,371 people derived economic benefit from the industry and that the overall industry had a national economic impact, estimated at €302 million. The report also highlights the considerable economic activity and employment in rural Ireland, while at the same time the industry enjoys a strong urban support base.

Much work was undertaken in the latter part of 2017 on the development of a strategic plan for the period 2018 to 2022. The plan sets out a number of key pillars, including ensuring the highest standards of integrity and regulation in the sport and maintaining animal welfare at the centre of the industry. The matters of regulation and animal welfare have been under discussion by the Oireachtas Joint Committee on Agriculture, Food and the Marine and further discussion with that committee is anticipated in the coming weeks.

One of the objectives of the strategic plan for Bord na gCon is to undertake an assessment of the overall industry footprint. Indecon Economic Consultants has been appointed to undertake this work and its report is expected in the final quarter of 2019. The greyhound industry and Bord na gCon continue to operate within a very challenging environment. Our focus will be on continuing to implement our strategic plan towards achieving a rejuvenated greyhound industry and a sport that will continue to be celebrated as a unique part of Irish culture and heritage.

The Greyhound Racing Act 2019 was signed into law on 29 May last and provides Bord na gCon and the greyhound industry with an opportunity to look to the future on the foundations of a strengthened and robust modern legislative framework. We look forward to the commencement of the legislation in due course.

I mentioned that the financial statements for 2018 had been finalised. I draw attention to a re-valuation process and impairment analysis which form part of the 2018 financial statements. This has resulted in a reduction in the figure for fixed assets from €51.5 million to €29.4 million. This process was undertaken in accordance with Bord na gCon’s accounting policies and has no impact on cash flow or the operational side of the business.

Again, I am thankful to have the opportunity to come before the committee. We will endeavour to respond to all questions asked. However, if there is additional information required arising from the meeting, we will be pleased to provide it as promptly as we can.