Dáil debates

Tuesday, 21 February 2017

Topical Issue Debate

Greyhound Industry

6:55 pm

Photo of John CurranJohn Curran (Dublin Mid West, Fianna Fail)
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Earlier this month the gates of Harold's Cross greyhound stadium were locked, the traps and other equipment were removed, and after almost 90 years greyhound racing in Harold's Cross came to an end. Last week, I, Deputy Jackie Cahill and others met owners, breeders, those who had an interest in the industry and those who used the facilities at Harold's Cross. They were not consulted nor do they support this decision. The lack of support from the industry in this decision is evident in the protests at Shelbourne Park.

We are told that the Irish Greyhound Board made this decision because it has a debt and it wants to sell the lands at Harold's Cross to pay the debt. The primary cause of the debt was the overspend on the development in Limerick. Harold's Cross as a racing track is a profitable, successful venture, and in the absence of a wider plan by the Irish Greyhound Board, selling a profitable element of its organisation does not make sense and does not enjoy the support of owners, breeders and those involved in the industry. It is a historic and cultural part of life in Dublin for more than 90 years, dating back to 1928.

Photo of Alan KellyAlan Kelly (Tipperary, Labour)
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The decision last week to sell Harold's Cross racecourse was the last straw for many. The board of Harold's Cross were not consulted. Those who have contributed to the industry for generations are sick and tired of the way the Irish Greyhound Board is running this industry. Frankly speaking, it is running it into the toilet. It is a basket case at this stage. The level of debt is incredible, but also the decision-making process is wrong. I would urge the Minister of State to not act like his predecessors, who made the mistake of saying that it would sort itself out and that it is a separate organisation. It is now time for this board to be dismissed and time for the Department of Agriculture, Food and the Marine to take over the running for an interim period until it gets to the bottom of what the hell is going on in this organisation.

Photo of Kevin O'KeeffeKevin O'Keeffe (Cork East, Fianna Fail)
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On Monday, 13 February 2017, on the eve of St. Valentine's Day, a most disastrous, cowardly and devious act was carried out against the greyhound industry in this country, especially in the greater Dublin area. Bulldozers have since been sent into Harold's Cross greyhound stadium to make it unraceable. Directors at Harold's Cross were not informed. Owners, trainers and breeders were at a loss, and continue to be in a state of shock. There were no talks between any of the stakeholders, just downright acts of scheming, lying and betrayal by those who carried this out. What makes this attack on the industry all the more astonishing is that it was carried out by those who claimed to be running the industry. It is these same people at the top level of the Irish Greyhound Board who have brought this great industry to its knees. It is clear that the closure of Harold's Cross is as a result of the appalling decision-making of the Irish Greyhound Board over the past ten years. The closure of the Harold's Cross greyhound track is because of the excessive overspend and the debt that was accumulated during the construction of Limerick greyhound track.

Harold's Cross is one of only three tracks in Ireland to make a profit consistently down through the years. It has had a clear and defined customer base for many years from a defined proximity. To presume that the customers, breeders, patrons and staff will relocate their livelihoods to Shelbourne Park is based on speculation and poor judgment. Shelbourne Park is more associated with the bigger trainer and the higher calibre of race. It is unlikely that they will now be able to handle or cater for the influx of extra races coming from Harold's Cross. This results in livelihoods being destroyed.

Photo of Andrew DoyleAndrew Doyle (Wicklow, Fine Gael)
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I do not mean to be flippant but this is one that has had me running around the track for a while.

Photo of Alan KellyAlan Kelly (Tipperary, Labour)
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Running away, maybe.

Photo of Andrew DoyleAndrew Doyle (Wicklow, Fine Gael)
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I am not running away, Deputy. Do not worry. I have tried to engage with everybody as best I can.

Photo of Alan KellyAlan Kelly (Tipperary, Labour)
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I appreciate that.

Photo of Andrew DoyleAndrew Doyle (Wicklow, Fine Gael)
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Bord na gCon is a commercial State agency responsible for the control, promotion and operation of greyhound racing. In this context it owns a number of commercial greyhound tracks, including Harold’s Cross. The operation of those tracks is a matter for the board and its subsidiaries. Bord na gCon also regulates the industry and provides a range of supports to the sector, including through the provision of funding for prize money and the allocation of grants to improve amenities at tracks. It is no secret, as has been articulated here already, that the board has been operating in an extremely difficult financial environment for a number of years now, with the pressures of the recessionary period, reducing tote receipts and attendances exacerbated by a very significant debt burden.

In 2014, against the background of reducing income for the organisation across a range of headings, my Department commissioned an independent report into certain matters relating to Bord na gCon, including its financial performance and prospects. That report, by lndecon economic consultants, recognised the very difficult situation in which the board found itself and provided a roadmap for the sustainable development of the greyhound sector. In particular it recommended a number of asset disposals, including Harold’s Cross stadium, to reduce the debt burden. The report was accepted by Bord na gCon. I understand that the board, having considered the matter, and having regard to the recommendations in the Indecon report, has decided to close Harold’s Cross stadium to initiate the process of putting it on the market. Its objective is to reduce the financial burden of servicing its debt, with the ultimate view of increasing its capacity to provide support and assistance to the industry. While this is very regrettable, the view of the board is that there is no other option if the burden of debt on the organisation is to be reduced in any meaningful way.

It is clear that this is a very difficult decision for the board, and of course there is significant opposition to it from greyhound people whose views are heartfelt and sincerely held, and indeed I have met them. This is to be expected and is completely understandable. There are a strong cohort of greyhound people, particularly in Dublin, who have a particular association with Harold’s Cross greyhound stadium. I understand that the intention of the board is to transfer the Harold’s Cross racing schedule to Shelbourne Park and that all staff at Harold’s Cross will be offered redeployment.

There has already been significant Government commitment to this sector in recent years, with the contribution of the taxpayer through the horse and greyhound fund having increased from €10.8 million in 2014 to €16 million in 2017. The greyhound racing industry simply would not survive without this public funding. However, the board also has an obligation to improve its own financial standing, and I do not consider it appropriate that this should always involve further recourse to the taxpayer. This is a sector that faces many difficult challenges, not just financial but also regulatory and reputational. I believe that the board, in very difficult circumstances, is working its way through the issues identified in Indecon and other reports with a view to addressing these issues.

I should also say that my Department will very shortly be bringing forward legislation to improve the governance and regulation, and ultimately the reputation, of the sector. I very much look forward to the input of colleagues across the floor to this important exercise.

In so far as Harold’s Cross is concerned - it is an important point to make, if the Ceann Comhairle will indulge me - any sale will ultimately require the consent of the Minister for Agriculture, Food and the Marine and the Minister for Public Expenditure and Reform. Any specific proposal for its sale will be considered, having regard to the Indecon recommendations, the value to be obtained, the need to avoid any further burden on the taxpayer and the need to reduce the significant debt burden.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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We are badly over time. I will ask the Deputies to be very brief.

Photo of John CurranJohn Curran (Dublin Mid West, Fianna Fail)
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I thank the Minister for his reply, but I want to return to the Irish Greyhound Board. It is some €20 million in debt and has now made a decision to sell Harold's Cross, which will only clear a proportion of it. Harold's Cross is a profitable entity in its own right. It does not make good business sense to sell off something that is making a profit and to retain other elements that are loss making. The debt that is on the books of the Irish Greyhound Board goes back to previous decisions it made, primarily around the redevelopment of Limerick, and in that regard I would ask the Minister of State to make it known to the Irish Greyhound Board that the prospects of ministerial approval for this disposal are nil.

The Irish Greyhound Board needs to wake up and come up with a much more viable and proactive business plan rather than saying the only way out of this is to sell assets. It is a lazy way and does not address the issues. If it continues running the same business model without developing the business, then the sale of this will be futile. I am absolutely opposed to it. I ask the Minister of State and his colleagues to make that known to the Irish Greyhound Board at an early stage.

7:05 pm

Photo of Alan KellyAlan Kelly (Tipperary, Labour)
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I thank the Minister of State for his reply. He is one of the most honourable people in here, but the reply supplied by his Department is the same garbage that departmental officials supplied to me, Deputy Burke and others at last week's Committee of Public Accounts meeting. It does not get to the nub of the issue. It is washing its hands of it. It is letting down the owners, breeders, trainers and patrons. There is a fundamental problem with this organisation, its board and the executive that is running it. It needs to be rooted out and dealt with. The Department simply cannot wash its hands of its responsibility. There has been no representative of the Department on the board of the Irish Greyhound Board for some time. There is no accountability.

I very rarely come in here and speak like this. The people I reference here will not stop until they get accountability. The Minister of State has an opportunity to ensure that happens. It starts now by taking over this organisation, taking over the board on an interim basis, finding out what has been going on and putting in place a plan for the future. The Indecon report is nearly four years old.

Photo of Kevin O'KeeffeKevin O'Keeffe (Cork East, Fianna Fail)
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With all due respect, I hope the Minister of State is not going down the same road as the Minister, Deputy Ross. The Minister of State is the major shareholder of Bord na gCon and has a big say. The industry is in a crisis. The prize money has sharply reduced in recent years. If the prize money goes down, attendances go down and that is where we have a problem. The board needs to be held accountable. There must be some mismanagement there if the prize money has been reduced by half over the past five or six years.

Photo of Jackie CahillJackie Cahill (Tipperary, Fianna Fail)
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I am a greyhound owner and the director of a greyhound track. Our industry is in serious bother. There has been a dispute for the past three weeks and as far as I can see the Department is washing its hands of it. Our premier track has had no racing for the past three Saturday nights. Last Friday only six dogs turned up to race at Shelbourne Park. This dispute is doing our industry irreparable damage. We need to get all sides at the table and get discussions going. We need to get racing resumed. The closure of the Harold's Cross track and how it was handled must be addressed.

Photo of Andrew DoyleAndrew Doyle (Wicklow, Fine Gael)
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I appreciate all this. I am as anxious as anybody to let this new legislation get into the committee so that every stakeholder including those representing the Harold's Cross track will get the opportunity to have their say. Timing is critical here. I hope this can be put into the committee's schedule in the next couple of weeks. I have notified it so that the members can plan to have it on their work programme. In my previous role as Chairman of the Joint Committee on Agriculture, Food and the Marine we had the same process for the horseracing legislation.

This is a legacy debt that precedes my time and that of my two predecessors over two Governments. It was decided in 2014 that proper due diligence was not carried out over the development of the Limerick track. However, that is water under the bridge, unfortunately, and the debt continues.

I agree with what Deputies Curran and Kelly said about a business plan. That has to be the main focus of the organisation. I ask people to bear in mind that I answered parliamentary questions a couple of weeks ago asking if it was fair to put €16 million of taxpayers' money into a declining industry, which is a fair question. However, the background to that was a different agenda. Some Members of this House have a completely different opinion and they are not all from the city, as one might expect.

At the outset I specifically requested to meet the representatives of the Harold's Cross track on their own. If there was any way we could prevent this from happening, I would be happy to hear it. To go back to Deputy Kelly's point about the makeup of the board, how they will be filled and how their terms will operate, over the course of the discussions on pre-legislative scrutiny it will be important to stress having ministerial and departmental presence on that board all the time.

It provides regular budgetary updates on its trading position, which is actually quite healthy. However, to deal with the legacy debt will take a very ambitious plan. At the moment the only one seems to be the recommendations of the Indecon report.