Michael Creed (Cork North West, Fine Gael) | Oireachtas source

Horse Racing Ireland, HRI, is a commercial State body established under the Horse and Greyhound Racing Act 2001 and responsible for the overall administration, promotion and development of the horse racing industry. The Deputy will be aware that the board of HRI has its own obligations in relation to compliance with corporate governance standards. In this context, I understand HRI operates a formal internal audit function which is outsourced to an external third party firm. I understand that, in its most recent corporate governance internal audit review in September 2015, HRI received a satisfactory assurance rating and that internal auditors did not raise any matter of significant concern. It is also the case that HRI publishes annual accounts which are laid before the Houses of the Oireachtas each year. These accounts are subject to external audit by the Comptroller and Auditor General and I expect HRI to engage constructively in that process.

I also understand HRI has arranged, through its legal advisers, for a detailed briefing and training on the new code of practice for the governance of State bodies which was recently published by the Minister for Public Expenditure and Reform. The Indecon report commissioned by my predecessor in 2012 reviewed certain aspects of governance and financing of the horse racing sector. Many of its recommendations in relation to governance have been taken on board in the Horse Racing Ireland (Amendment) Act 2016 which was finalised by my predecessor earlier this year. My Department has arrangements in place to monitor the activities of State agencies. In this context, it is also working on the development of a new formal written framework to formalise performance and compliance monitoring to reflect the provisions of the new code of practice.

HRI is a public body which is and will continue to be subject to significant levels of internal and external scrutiny, which is as it should be. I am aware that there have been issues relating to the sequencing of events in the recent appointment of the CEO. These have been acknowledged by the chairman and I have received written assurances that arrangements will be put in place to ensure the development by the board of a robust succession plan before the expiry of the current contract.

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