Oireachtas Joint and Select Committees

Tuesday, 27 September 2016

Joint Oireachtas Committee on Agriculture, Food and the Marine

Reappointment of CEO of Horse Racing Ireland

5:00 pm

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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I agree with Senator Daly. This is a world class industry. Many thousands of people are employed in it, including small trainers and breeders throughout the country, all of whom contribute to an industry in which Ireland is at the forefront globally. That reputation has been hard won and we should bear that in mind.

Deputy Penrose spoke about the HRI board meeting today. It issued a press statement afterwards stating that it met today to review matters concerning the reappointment of its chief executive, Brian Kavanagh, and elements of the commentary and misunderstandings which have followed. The board expressed regret that this matter has become the subject of public concern. The board refutes suggestions that the chairman intentionally misled the relevant Departments with regard to the chief executive officer, CEO, appointment process. Dating back to 2011, the then board mandated the then HRI chairman to advance outstanding matters regarding the resolution of the CEO’s contract and any related matters. The issue was transferred to the new chairman, Mr. Joe Keeling, on his succession to office in March 2013. The board confirmed that the chairman’s actions and intentions reflected its views regarding the CEO’s contract. It also recognised that a more collegiate approach would have improved the process but its members were fully agreed that there was no intention to inform the Minister incorrectly or that the board’s views had been misrepresented. The board, having endorsed Mr. Kavanagh’s appointment previously, confirmed today that it is satisfied that the best result for HRI and the industry has been achieved with the successful completion of the new CEO contract.

Many of the issues raised today are appropriate and germane to HRI, the chairman, the board and the CEO. In so far as I have a role in this, it is prescribed clearly by law. Under section 21(3) of the Irish Horseracing Industry Act 1994, “The chief executive shall hold office on and subject to such terms and conditions (including terms and conditions relating to remuneration) as may be approved of by the Authority with the consent of the Minister and the Minister for Finance.” The board was under no obligation by virtue of the consent that was given.

When the Department receives a communication from the chairman of a State authority, it is reasonable to assume that the chairman speaks on behalf of the board. That is a legitimate assumption. We received a communication looking for the reappointment of Mr. Kavanagh as a business case. The case presented in a letter outlined several issues deemed to be critical. They are issues on which the board says today its views and the views of the chairman were ad idem. They shared the same objective. The business case was the basis for the reappointment.