Address to the Joint Oireachtas Committee on Agriculture, Food and the Marine
Minister of State Tom Hayes T.D.
20th October 2015
Topic : Greyhound Racing
I am pleased to be here today to discuss the greyhound racing industry.
It is a sector which merits attention, because apart from being a sporting and leisure activity, it is an industry which makes a significant contribution to the Irish economy.
In its 2010 report on the sector, Jim Power Economics estimates that the Irish greyhound industry employs just over 10,300 people directly and indirectly, that the gross wage bill generated by that employment is €207 million, and that the tax contribution from that employment is €21 million.
Based on a conservative multiplier of 1.5, the Power report estimates that this results in a total economic impact of €279 million, in terms of additional spending in the Irish economy.
That report also refers to the rural impact of this activity. The 17 licenced racetracks around the country are widely dispersed geographically, with greyhound owners and activity in every county in the State. And of course greyhound racing is something that is inextricably linked to the farming community. It is part of the fabric of rural Ireland, but also enjoys a strong urban support base.
Bord nagCon is the commercial State body charged with promoting, developing and regulating the greyhound sector. This is a complex task. The Bord employs over 700 people including full and part time and has an annual turnover of approximately €40 million. Funds generated from racing are re-invested in the industry through contributions to prize money and grants to various bodies involved in the greyhound racing and breeding sector, as well as promotion of greyhound welfare and the regulation of the industry.
The challenge for the Bord is to encourage the development of a commercialgreyhound racing and breeding industry, built on a customer focussed, high quality entertainment product, which meets the highest international standards of regulation.
The work of Bord nagCon since 2008 comes against the background of challenging economic conditions, reduced disposable income in households and lower consumer spending.
Against that general backdrop, in early 2014 my Department commissioned Indecon Economic Consultants to prepare a report on certain matters relating to the Bord. Indecon were asked to examine matters relating to governance, fincance, regulation and welfare.
Indecon reported in July 2014. It identified a number of significant financial and commercial challenges facing the sector and made a number of recommendationsin this regard. It also made recommendations in relation to governance, regulation, animal welfare and breeding, which I have broadly accepted.
Implementing Indecon is a work in progress. There are challenges, but I know that the Bord is diligently working to an action plan and that significant progress is being made. It is critically important that those involved in the industry have confidence in this process. In this context I would urge the Board to consider how it might improve communications to the industry in relation to the implementation of Indecon, because it is very much in the best interests of both the Board and the Industry that those involved in the sector have a full appreciation of the progress being made.
I know that you will be bringing the Chairman and CEO of Bord nagCon before you later today for a detailed report, but I would like to touch on some of the broad themes and priorities.
Finances
Greyhound racing relies on Bord na gCon for the provision of prize money, for financial support for the operation and development of tracks, and for a variety of other operations and services, without which the sector could not continue to exist.
Putting Bord na gCon on a sound financial footing is a key priority. The context for Bord na gCon’s operation over the past several years includes a very difficult economic environment, and also the requirement to service bank debt of some €21 million. Improving its financial position requires it to take action reduce its borrowings and improve the commercial viability of its operations. Key recommendations included a plan for asset disposals, the calibration of race meetings to improve the viability of poorly performing stadia, the development of new products such as co-mingling and fixed odds betting opportunities and an exploration of alternative sources of commercial income at stadia. These are operational matters for Bord nag Con, and of course there are no instant solutions. However, progress is being made on all of these fronts.
On asset disposals, Bord nag Con has already completed the sale of its former Headquarters in Limerick, as recommended in Indecon, and is looking at the sale of other non core assets. The Board has included Harold’s Cross in its asset disposal plan, in accordance with the recommendation in Indecon.
I would expect that any such sale would be subject to a variety of considerations in the final analysis, including the value obtained, the extent to which it can improve the overall financial position of the Bord and the impact on the Bord’s ability to develop and promote greyhound racing on a more sustainable basis nationally.
I should also say that I havebeen extremely supportive of the Board interms of its finances. In Budget 2015 my Department provided an additional €2.8 million in funding, for Bord na gCon, bringing its share of the Horse and Greyhound Racing fund to a total of €13.6 million. I am delighted that an additional €1.2m has been provided in 2016, bringing total exchequer funding for greyhound racing to €14.8m . This additional provision has been very well received in the sector. I want to see this funding used to stimulate participation in racing and breeding through the provision of grants for prizemoney, and I would like to see this incentive filter through to small as well as larger races.
I will of course continue to support the greyhound racing industry in this way. However, the funding provided by the exchequer is not limitless, and I must insist that Bord na gCon takes the necessary steps to improve its own commercial outcomes in a way that best serves the interests of the industry and gets the best value for taxpayers’ money.
In this regard significant progress is being made on the development of co-mingling and fixed odds wagering opportunities, opportunities for exploiting alternative commercial opportunities at stadia are being explored, Bord na gCon is connecting with consumers through the development of its digital strategy and hospitality services at stadia are being revitalised with new market offerings and admission packages. There are real opportunities here, particularly against the background of a strengthening economy.
Governance
Indecon made a number of recommendations about the size and composition of the Board, some of which will require changes to legislation. In this regard, my Department is at present working on the heads of a Bill, which I hope to bring to Government in this Dáil term. I have already introduced both veterinary and legal expertise on to the board.
All board appointments are now made through the Public Appointments Service, and a process is currently underway, through that system, to fill five board vacancies with people with appropriate expertise in finance, marketing, greyhound industry expertise, and a youth role model with experience in other leisure or sports industries.
Bord nagCon has also strengthened its risk management and internal audit processes and a review of the effectiveness of Board operations is underway.
Regulation
I want to turn to regulation for a moment, because it is central to the reputation of the sector Indecon made a number of recommendations on strengthening regulatory processes and procedures. A number of firm actions have already taken place and I am determined that Indecon’s recommendations in this area should be implemented.
From 1stOctober the results of any adverse analytical result from a greyhound tested for a prohibited substance will be published on the Bord nag Con Website. . In the event of such a test, the greyhound will not be permitted to race again until a further test is undertaken, with negative results.
This is a strong measure, but is fully warranted, because I want to send out the clear message that there is no place for those using prohibited substances in Irish greyhound racing.
In addition, the findings of all new cases coming before the Controls
Committee, which adjudicate on any possible breaches of regulation, will be published, as will the reason for their decision. The Controls Committee operates absolutely independently of the Board, but for the avoidance of any perception to the contrary, I intend to provide in primary legislation that its members should be appointed by the Minister of the day.
I will also make explicit provision for penalties in the primary legislation to which I have already referred, and the question of mandatory sanctions will be considered in that context.
Furthermore, in the HRI Bill, which will be brought before the Oireachtas in November, Minister Coveney will be introducing a provision permitting the appointment of persons or classes of persons as authorised officers under the Animal Remedies Legislation. This provision can provide a basis for off track inspections at kennels and elsewhere in relation to prohibited substances.
The field of medication is not static, of course. Technologies move on and it is important that regulators can keep pace with scientific developments. In that context Bord nagCon has established a Scientific Committee on Doping and Medication Control, with leading experts providing provide advice on an ongoing basis on scientific matters relating to doping and medication control in greyhounds.
This committee willreview the current list of prohibited or controlled substances and where applicable, their associated thresholds or limits, and will advise Bord na gCon on any changes considered necessary.
The Committee of five experts represent the various disciplines of relevance to such a task: animal remedies, canine internal medicine, analytical chemistry and greyhound veterinary practice. Each of the individuals concerned, whose appointments have recently been made for a three year term initially, have relevant experience in the areas mentioned. That experience includes the assessment of veterinary medicines for regulatory approval purposes, both at a national and at a European level, the control of such medicines in the field, and the sampling and analysis of animals for residues.
In addition to all of this, Bord nag Con commissioned Professor Morris to report on its integrity and control systems. I understand that that report is at present being considered by the Board, and I expect it to be published shortly. Naturally, if there are additional recommendations emerging from this exercise, I would expect them to be implemented.
I want the greyhound racing sector in Ireland to be synonymous with the highest international standards of regulation, and I expect Bord nag Con to continue to evaluate the effectiveness of its systems on an ongoing basis, and to make any adjustments necessary.
Welfare
High standards of animal welfare are also a critical part of the reputational dynamic. If we are to attract a younger people to the sport, and sell our product domestically and internationally, the customer must have confidence that the greyhounds without which races could not take place, are properly looked after. This requires pro-active enforcement and the strict application of effective sanctions. The publication of data on welfare inspections and penalties imposed will also be a deterrent for potential offenders.
I am convinced that as a rule those who love greyhounds are extremely concerned for their welfare. The actions of a very small minority who disregard the welfare of their dogs has the potential to damage the reputation of the greyhound sector irreparably, particularly among those whom we are trying to attract as new spectators and participants. Developing a strong welfare culture must be a top priority and the strongest action must be taken against those who would threaten the reputation of this sector by failing to look after their dogs properly. The Welfare of Greyhounds Act 2011provides a robust legislative framework for all the of necessary action and I know that Bord na gCon is working with other agencies to ensure that the industry in Ireland operates in accordance with the highest welfare standards.
Conclusion
Those who know me, know that this is an industry about which I am passionate. In commissioning an independent consultant to look at aspects of the industry my objective was to ensure that the State’s framework for regulating and supporting the industry was fit for purpose.
The Indecon report recognised the challenges facing the greyhound racing industry at a time when there are many alternative sources of leisure and entertainment, but also laid down a road map for improving the sustainability of the sector over time.
It is no secret that the public commentary on the sector, even from within, is sometimes characterised by dissension and disagreement. Of course this is a function of people’s passion for the sport. We can always learn from dissenting voices, but what is critically important is that we map a coherent route through the various challenges that face the greyhound sector, take decisive action where it is needed, and ensure that this great industry continues to make its vital contribution to the economic, social and cultural fabric of both rural and urban Ireland. This is an industry with great potential in terms of its contribution to employment and the economy, we must take the action necessary to ensure that that it reaches its full potential.
I am determined that we will do that, and I will be closely monitoring Bord na gCon’s progress in implementing the Indecon report.
ENDS
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