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Updated 9pm
HORSE RACING IRELAND has defended the reappointment of its chief executive on a salary of €190,773, which breaches the specified salary range for a commercial State body by €25,000.
Minister for Agriculture Michael Creed has confirmed that he and Minister for Public Expenditure Paschal Donohoe gave consent for Brian Kavanagh’s third five-year term as the CEO of HRI, following lobbying by HRI chairman Joe Keeling.
Government guidelines stipulate that CEOs of semi-state organisations should serve no more than a single seven-year term.
Kavanagh has been chief executive of HRI since 2001, and began a third term of five years last weekend.
According to the HRI latest accounts Kavanagh’s current salary is €190,773 but, since 2011, the specified salary range for the position of HRI CEO is €137,356- €164,231.
He also receives €56,000 in pension contributions and other taxable benefits every year.
The HRI received almost €60 million in taxpayers’ money this year, up from €45.83 million in 2011.
Limited
The Joint Oireachtas Committee on Agriculture is currently in session, and is discussing “issues surrounding the recent reappointment of the CEO of Horse Racing Ireland”.
This evening Minister for Agriculture Michael Creed tonight reiterated his written Dáil reply on 16 September, when he acknowledged that guidelines on contracts for the CEOs of state bodies provide for a seven year period of appointment.
“There is an issue, however with the sequencing of events,” Creed said this evening.
“In essence, I understand the board had not had a prior discussion about” the reappointment of the CEO when the chairman had contacted the two ministers for their consent.
Creed said this was unfortunate, as the appointment could only be effected by the board.
He said he is satisfied that the HRI board is satisfied that the best outcome has been achieved.
“The business case was the basis of the reappointment,” Creed added. He said that the first letter from the HRI chairman said it was from the HRI board.
“I would have preferred if the sequencing of events was different. And I think the chairman of HRI acknowledges that as well.
“When I get a letter from the chairman I get the legitimate suggestion that the letter is on behalf of the board.”
Creed said that if the board did not want the CEO to be reappointed then it was able to choose someone else. Asked if he was misled, Minister Creed said:
“The misleading has really to do with the sequencing. The issue is to do sequencing.
“I have very specific and limited roles… and they have to do with assenting to, or otherwise, the communication of the board in respect to” appointing a CEO.
Minister Creed added that the business case was presented in a letter, which referenced the HRI’s five-year business plan.
Unprecedented
Charlie McConalogue, Fianna Fáil Agriculture spokesman, said the reappointment of the CEO for a third time was unprecedented, and that serious issues remain over the procedures.
McConalogue asked that it was a serious matter whether the HRI chairman indicated whether he was acting on behalf of the HRI board, or whether he was acting as the chairman.
Clare Daly TD said that the justification for Kavanagh’s third term was that he had unique experience, similar to the reasons given for Pat Hickey’s continual re-election as President of the Olympic Council of Ireland.
Daly said the position was advertised prior to Kavanagh seeking a second term, but not for his latest, third term. She added:
Government guidelines are there for a reason… every organisation needs fresh blood.
Labour TD Willie Penrose said the “cart was put before the horse” when the HRI chairman gave a business case to the ministers without being put before the board.
Penrose said the Department of Agriculture should put together a value-for-money evaluation of Horse Racing Ireland, as advised by consultants Indecon.
Exceptional extension
Creed has previously admitted that he and Minister for Public Expenditure Paschal Donohoe had been lobbied by HRI chairman Joe Keeling.
“In the case of Horse Racing Ireland the chairman of HRI [Joe Keeling] made a case for an exceptional extension to the term of appointment of the CEO, based on a number of business imperatives,” Creed said.
“The appointment of the CEO is a matter for the Board of HRI under the relevant legislation. However, the consent of the Minister for Agriculture, Food and the Marine and the Minister for Public Expenditure and Reform is required.
In this instance both I and the Minister for Public Expenditure and Reform accepted the case made by the chairman and provided the necessary consents for an exceptional appointment by the board.
Creed added that the ministerial “consents provided permitted the board to retain the services of the CEO at his existing salary”.
HRI response
Horse Racing Ireland (HRI) is a commercial state body established under the Horse and Greyhound Racing Act 2001. It is responsible for the overall administration, promotion and development of the horse racing industry.
In a statement this evening, the board of HRI said it met today to review matters concerning Kavanagh’s reappointment.
Speaking about “elements of the commentary and misunderstandings which have followed, the HRI board said it regretted that “that this matter has become the subject of public concern”.
It added: “The board refuted [sic] suggestions that the chairman intentionally misled the relevant government departments with regard to the CEO appointment process.
Dating back to 2011, the then board mandated the then HRI chairman to advance outstanding matters regarding the resolution of the CEO’s contract and any related matters.
“This issue was transferred to the new chairman, Joe Keeling, on his succession to office in March 2013.”
The HRI board said that Keeling’s actions and intentions, over the CEO’s contract, “reflected its views”.
It added:
It also recognised that a more collegiate approach would have improved the process, but were fully agreed that there was no intention to incorrectly inform the Minister or that the board’s views had been misrepresented.
“The board, having endorsed Kavanagh’s appointment previously, confirmed today that it is satisfied that the best result for HRI and the industry has been achieved with the successful completion of the new CEO contract.”
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The “charity begins at home” brigade are out in force. Charity doesn’t begin at home, it begins with whoever is the worst off.
Well said Neal Ireland. These people are so much worse off than those needing help here in Ireland. In the grand scheme of things €1.9 million isn’t huge money here but will make a huge difference in places like Sudan.
The original meaning of “Charity begins at home” has unfortunately been lost…
Spending the money in Ireland. Stop taking medical cards from the needy, reduce the closure of the Rape Crisis Centres, fund the necessary community organisations and get the homeless off the Street. There you go well spent and went a long way to providing the necessary. It’s good to be seen given Foreign Aid while our little country perishes at the hands of idiot Governments.
Do you honestly think that if we didn’t send this money to Sudan that even one penny of it would go towards any of the things you listed? How anybody can begrudge this vital support is beyond me.
Perishes? Overdramatic.
What about spending the money on our homeless people instead of giving it to other countries
What about spending money on teaching punctuation to sinn féinners ?
A psychologist friend of mine suggested that Patrick has a small manhood, hence his behaviour. The Popeye sailor man would also suggest his attraction to sailors and his fear to come out of the closet.
That’s correct. I read an article before that forum trolls either have tiny johnsons or can’t get them up for very long. The frustration leads them to lash out online in anger at the world. Great to study however.
While we’re being pedantic about punctuation, there’s no space between a word and a question mark. Practice what you preach.
Debbie, there should not, there was not but there is. Why? I do not know.
corrupt government will prob take 3.9 million of that
Mathematics and mé féiners do not seem to mix.
Apologies Patrick, I meant 1.9 million.
Its not direct government aid so hopefully the government of South Sudan won’t be able to get their hands on it because NGO’s such as the red cross do lifesaving work in these places. For those that say charity starts at home it doesn’t, charity is for those who need it most. It shouldn’t just be Ireland looking after the Irish it should be everyone helping the less fortunate/needy. Take for example the article during the week about the Irish funded heart surgery team sent to the Ukraine providing vital lifesaving operations for children. That article was well received without anyone suggesting the money should be used at home so what’s the difference here? The aid here is needed more urgently also. (I’m aware that the surgical team were funded through a charitable organization but one which, no doubt, receives a grant from the government)
We should all give we will never have to look out our window and see that devastation were talking roughly the population of Ireland on the brink of starvation here get a grip and donate.
We had our own famines and we still love to cry about it. We are different to other peoples, sure everybody loves the Irish Olé Olé Olé. Let other starving people bugger off. Do they not realise the price of a pint in Ireland?
The NGOs who get this money will spend the bulk of it on air conditioned cars, air conditioned rooms and the same food they get at home so that they live like they’re at home. Unfortunately this is a waste of money.
Wonder where all the oil money is going
Throw it in the Liffey be better off them government will get there greedy MIT’s on it and that will be it . money never gets to them . that’s why the problem will never ever get sorted.
I am in no way opposed to Ugandan’s receiving aid and I know the situation is dire over there but why is our government so quick to send money overseas and not think about using that money for our own homeless people. I just don’t get it. In Brazil the poor and needy are getting beaten off the streets so travelling football fans don’t have to see them. Does the media care about that? But luckily they’ve got Bill Gates over there to vaccinate everyone in the middle of another US proxy war.
Media very select in its reporting
The government are signed up to give millions to Africa every year. Something in the region of 236 million I think.
I notice there’s a general trend in being pro-aid and against those who would rather keep that money here but if you look at how aid is administered by Aid organisations in third world countries then you would see that the money is never used effectively, however that 2 million could change a lot if used properly in our black spots within out capital and across Ireland. Hence charity does start at home if the resources are best utilised here
50 cent each …sound :-)
Is there any country in Africa with a stable government…Christ!!!
*facepalm*
5 cent each…. sound :-)
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