Mr. Seamus McCarthy:

As members know, Bord na gCon was established to provide a statutory basis for the control, regulation and development of the greyhound industry. It operates racing activities through 11 subsidiary companies and licenses greyhound racing at other privately owned tracks. With effect from 2015, it has also operated catering and beverage services at its tracks. Those services were previously outsourced. At a previous meeting, the Chairman asked for a diagram explaining the group. It is on screen now. I have tried to indicate what comprises the group and the extent of my audit, which includes the head organisation and a company called Abargrove, which provides the catering services and operates the Newbridge track. The ten other subsidiary companies operate greyhound tracks that are run by Bord na gCon. A number of other tracks are privately owned but have received grant assistance from Bord na gCon.

Overall, the Bord na gCon group achieved a surplus for 2015 of €438,000. Its accumulated revenue reserves amounted to just €46,000 as at the end of that year. Bord na gCon received State funding of €13.6 million in 2015, which was sourced from the Horse and Greyhound Racing Fund. The 2015 surplus from racing activities was €617,000. This included a net profit of €1.9 million from tote betting on turnover of €19.6 million. Excluding betting, track activities resulted in a net loss of €1.3 million in the year. Bord na gCon paid out €6.5 million in prize money in 2015, towards which dog owners and sponsors contributed €1.9 million. General administration costs in the year amounted to €9.2 million.

The audit report on the 2015 financial statements drew attention to note No. 24, which disclosed the basis on which the board was satisfied that it was able to prepare the accounts on a going concern basis. Some members will recall that I reported on the acquisition of land and the development of a racetrack and new corporate headquarters at Greenpark in Limerick, which was completed in 2010. Since then, Bord na gCon has been carrying a high level of borrowing related to that development, as shown in the diagram that is now on screen. The lighter coloured bar is the borrowing level. In the same period, there has been a significant erosion of the group's operating surplus. Hence, the need for the note on the going concern basis.