Mr. Phil Meaney:

I am pleased to be here today. This meeting is timely for a number of reasons, not least that I am speaking to the committee at the time of Bord na gCon’s response to the Indecon report which was published in July last.

The greyhound industry is a significant one, with a footprint in every county in Ireland. It has an important economic dimension and employs several thousand people, directly and indirectly. There are many dimensions to the greyhound industry. It is variously a sport, a business and a community-based activity that has a value beyond the exclusively commercial. We know that as a fund-raising vehicle, greyhound racing is hugely important to sports clubs, charities and the voluntary tier and makes an enormous contribution at that level. By way of context, the Irish Greyhound Board licenses a total of 17 tracks, nine of which are owned by the board and ten of which are operated by it. The remainder are owned and operated by private companies. We are funded through a combination of income generated by our own racing-related activities, including the operation of Tote wagering from which we retain a share of the receipts. Exchequer funding comes through the Horse and Jockey Racing Fund. The recent budget decision to provide an additional €2.8 million to the greyhound industry through the fund is most welcome, particularly given the 30% reduction in funding to the industry through that mechanism over a six year period.

Notwithstanding the difficult trading environment for the industry, there has been steady progress on a number of fronts. In recent years, Bord na gCon has discharged a €2.5 million commitment to Dundalk stadium undertaken in 2006, has invested €1 million in Clonmel stadium and refurbished Youghal Track at a cost of €150,000. The board formulated a new five year strategic plan, which is currently being updated in the face of current trading conditions and the Indecon report. It has also put in place new arrangements with its bank and introduced a much more streamlined organisational structure reporting to the chief executive. We have put in place a basis for the exploitation of the commercial potential of co-mingling and the streaming of Irish greyhound racing to an international audience. The board has also introduced and implemented a new animal welfare code.

Greyhound racing and coursing are minority sports competing for space in a very crowded marketplace. We have been badly hit by the recession - of that there is no question. Traditional patterns of attendance are changing. In this regard, new technology is a double edged sword. It presents commercial opportunities but also diminishes the need for attendance at race tracks. The business model going forward must take account of this transition. The capital investment that has been made, and which is sometimes criticised, will allow the industry the capacity to market greyhound racing with consideration for changing consumer tastes, higher spectator expectations and new demographics.

The Indecon report provides an independent review of the industry and the work of the board. The Irish Greyhound Board enthusiastically supported the Minister's decision in directing the review to be undertaken. It was necessary and desirable in light of the radically changed trading landscape, under-resourcing of the industry caused by severe cost cutting in IGB in recent years and the massive changes in the wagering environment, both positive and negative, that an informed independent view of the industry be taken. We welcomed the report and regard it as a defining moment for the industry.

Indecon made 27 recommendations on finance, governance, regulation and animal welfare. The committee now has our response in a series of time-lined proposals to implement the recommendations. While our chief executive, Ms Geraldine Larkin, will deal in more detail later with the Indecon report, I would like to offer some thoughts at this point. The Indecon report is a pretty prescriptive document but in fact deals with issues on which the board was already very clearly focused. We have already implemented its recommendations on strengthening the audit and risk management functions in IGB. Our immediate priority is to stabilise the finances of Bord na gCon while allowing it to breathe and to improve its commercial performance. All of this will involve an aggressive programme to improve attendances, develop additional sources of income and the sweating and sale of assets.

We face a serious financial situation, caused by significant decline in most categories of our turnover since 2008. Indecon references the negative developments in the Irish economy as contributors to that decline. In the middle of a recession, people have to make choices and they do not have to go greyhound racing. The more recent positive economic indicators and the pick-up in employment numbers will help but there will be a lag period before we see significant impacts. There is no doubt that decisions which will be taken in the coming years will be difficult for some stakeholders to accept. All stakeholders will have to accept that the decisions taken can only be on the basis of what is good for the industry as a whole. There is a radical cultural change required in how we manage the industry and how we go forward. The notion of poorly performing tracks having financial subsidy and support in perpetuity is gone. Individual stadia will have to stand on their own two feet and be able to demonstrate a capacity to perform under certain headings. There is likely to be rationalisation of tracks over a period and Harolds Cross will be sold at the appropriate time.

There will be a significant ramping up of governance and controls at IGB. This process has already commenced. Improvement of governance at IGB will be assisted by an external review of all corporate governance procedures and the establishment of a new code of governance appropriate to it. These are important steps forward, as is the facilitation of board members to focus on significant, macro issues in IGB through the end of their board involvement in local tracks and stadia to which they have tremendous commitment but which is hugely time consuming. Likewise, there will be changes with regard to regulation and welfare. The board wants absolute transparency in these areas and where there are gaps in information for stakeholders, we are committed to addressing those and enforcing the regulations, as evident from our response to Indecon.

I am sure the joint committee will wish to deal in more detail with these issues. I again thank the committee for the invitation to address it.