Mr. Seamus McCarthy:

Bord na gCon was established to provide a statutory basis for the control, regulation and development of the greyhound industry in Ireland. It operates racing activities through 11 subsidiary companies, and licenses greyhound racing at other, privately-owned tracks.

Bord na gCon received Oireachtas grants totalling €10.8 million in 2014. Income arising from other sources includes proceeds from the operation of totaliser betting, gate receipts at tracks, bookmaker fees, and contributions from dog owners and sponsors towards racing prize money. Its expenditure includes amounts paid out in respect of totaliser betting wins, racing prize money and Bord na gCon’s administration and running costs.

The downturn in the economy has had a significant impact on Bord na gCon’s operations, and on its bottom line. The board incurred a loss of €1 million in 2014 and has recorded losses in four out of the last five years. As a result, the accumulated surplus of €5.1 million carried in at the beginning of 2010 has been wiped out, and Bord na gCon had an accumulated deficit of €0.4 million at the end of 2014.

I have previously reported on the acquisition of land and development of the racetrack and corporate headquarters at Greenpark in Limerick, which was completed in October 2010. Related to that development, and investment in other tracks, Bord na gCon has been carrying a high level of borrowing. The 2014 financial statements disclose bank borrowings at year end of €22.7 million, which is little changed year on year.

The 2014 financial statements were certified on 31 August 2015 and received an unqualified opinion. However, the audit report drew attention to the deficit, and to note 25, in which the board outlines the basis on which it considers that it is appropriate to prepare the accounts on a going concern basis.

Disposal of surplus property is a key element in Bord na gCon’s plans to improve its financial position and the level of State funding was anticipated to increase substantially in 2015. In addition, the audit report draws attention to non-compliance with public procurement rules, which has been referred to in Bord na gCon’s statement on internal financial control. I should point out the incidence of non-competitive procurement has declined and we will continue to keep that matter under review.