Dáil debates

Thursday, 2 February 2017

Ceisteanna - Questions - Priority Questions

Horse Racing Ireland

4:30 pm

Photo of Clare DalyClare Daly (Dublin Fingal, Independent)
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13. To ask the Minister for Agriculture, Food and the Marine further to Parliamentary Question No. 549 of 24 January 2017, the reason two persons, both with connections to the biggest player in the horse racing industry, have recently been appointed to the board of Horse Racing Ireland, particularly in view of the fact that one of the key objectives of the revised guidelines on appointments to State boards is to increase access and widen the pool from which potential appointees to State boards are drawn and the broadening of State board membership is another key objective. [4856/17]

Photo of Clare DalyClare Daly (Dublin Fingal, Independent)
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It is a pity the board did not contact the Minister before the expiry of the deadline. This question also relates to Horse Racing Ireland, which was the subject of much attention over the debacle surrounding the reappointment of Brian Kavanagh. We had the board members before the Oireachtas Joint Committee on Agriculture, Food and the Marine and to say they made an absolute show of themselves is probably a gross understatement. It was quite clear that what the board requires is strong independent intervention and for there to be independent regulation of the industry. Subsequent to that, why did the Minister appoint to the board two people with a very developed connection to Coolmore rather than individuals with an independent background?

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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Horse Racing Ireland, HRI, is a commercial State body established under the Horse and Greyhound Racing Act 2001, and is responsible for the overall administration, promotion and development of the horse racing industry.

I can confirm that the recent appointments to the HRI board were made in accordance with the guidelines on appointments to State boards. They were advertised on and the appointees were considered by the Public Appointments Service, PAS, to meet the  detailed criteria for their roles on the board. 

Photo of Clare DalyClare Daly (Dublin Fingal, Independent)
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I am not sure whether the Minister is choosing to misunderstand or if he just does not get it, but the reality is that there is a deep crisis within horse racing and an urgent need to have a capable, strong Horse Racing Ireland board. That is obvious and well known. The people the Minister appointed happen to be people with very developed connections to Coolmore Stud. There is a belief, which is not an abstract one, that there is an excessive influence by big players in the market. The Minister might like to comment on some of the crises around horse racing, for example, the foal levy, which is crippling small owners. There was an important court case in Naas last week where an owner who had won a case was met by the top legal establishment, if one likes, who was marshalled there by Horse Racing Ireland, to get the decision overturned. We know, for example, that it has a big impact on small owners.

The Minister might like to comment on the fact that it is widely known that foals at a major stud in Kildare are registered in the UK where the fees are lower and an arrangement for a contribution is made to HRI despite the fact that under regulations, any foals born in Ireland must be registered in Ireland. Unhelpful and wrong practices are taking place and the Minister needs strong people on the board. Why is he putting in insiders to police themselves?

4:40 pm

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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I know the Deputy has some form in terms of questioning the outcomes of court proceedings. I do not propose to trespass on the findings of the courts on such matters in recent days other than to acknowledge the outcome. There is separation of powers, which the Deputy may not wish to recognise but I do.

There are 13 members of the board of HRI and the board is representative of all sectoral interests, including workers in the industry, race courses, trainers and owners. The board is so constructed as to ensure there is an adequate voice available to all the interested parties. The Deputy has come in here and unfairly and without substantiation cast aspersions on the most recent appointees to the board. I think the Deputy should reflect on this. She has made scurrilous, spurious and unsubstantiated against two board members and I do not intend to dignify them other than to say that the appointments were made in accordance with the Public Appointments Service and in accordance with the criteria laid down.

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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We are in a very privileged position here in that we can come in and ask very serious questions. That is our job, but we must also be careful about mentioning any names or making allegations in the House. I am always very hesitant to prevent people from putting across their point of view, but we must also respect other people who are not here to stand up for themselves.

Photo of Clare DalyClare Daly (Dublin Fingal, Independent)
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No points were made against the individuals personally. What I put to the Minister as the Minister who appointed them is that he has a requirement to secure independent oversight of an industry that is self-regulatory and, in fact, non-regulatory. I did not pass any judgment. Under the foal levy, small owners have to pay a 3% levy to HRI that is based not on the fee they paid, but on the advertised fee, which means that small people are being fleeced for the enrichment of HRI while the big boys, who dominate the HRI board and do so now in even greater numbers, are not affected because the ceiling is set at €30,000. If the Minister thinks everything in the industry is great, I put it to him that he is about the only one in the country who does.

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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I told the Deputy, who chose to ignore it, about the not insignificant fact of the outcome of a court finding last week in respect of this matter.

In respect of the appointees, a clear skill set requirement was communicated to the Public Appointments Service as to the appropriate people required in respect of the industry. I am absolutely satisfied that the people who were appointed are more than well qualified to bring a unique and very valuable set of skills in respect of corporate governance and affairs and human resources experience to the board, of which the Deputy has been very critical in the past arguing that it did not have sufficient knowledge in the area of corporate governance.

Question No. 14 replied to with Written Answers.