IBA call for HRI investigation The Irish Bookmakers Association (IBA) today called for a investigation to be launched into all spending undertaken by Horse Racing Ireland (HRI) in recent years. The association has a membership that includes major operators including Ladbrokes, William Hill, Boylesports, Celtic, Hacketts and Bruce Betting, comprising about 700 of the 1248 betting shops in Ireland. The IBA is calling for the investigation following an assessment of HRI spending by consulting firm KMPG. The reports findings, laid out below, include claims that HRI contributions to prize money have increased by almost 600 per cent since 1998 and that HRI administration costs have increased by over 660 per cent. A press release by the IBA today stated that the report by KMPG reached the following conclusions:- 1. HRI's contribution to prize money, which includes prize money contributed by owners and sponsors, increased by almost 600% between 1998 and 2008. However, the number of race fixtures increased by only 33% over this period. 2. HRI's expenditure has increased by 40% more than its total income between 1998 and 2008. 3. HRI's administration costs (including pension and payroll) increased by over 660% between 1998 and 2008, representing an increase of €5.6 million. 4. The salary of the Chief Executive of the HRI (€313,000 in 2008) has increased by 56.6% between 2002 and 2008. Between 2007 and 2008 alone the Chief Executive's salary increased by 22%. 5. HRI's marketing expenditure increased by 112% between 1998 and 2008, an increase of 2.1 million. However, the number of people attending race meetings was only 14% higher in 2008 compared with 1998. 6. HRI's integrity and racecourse services expenditure increased by 241% over the period from 1998 to 2008, amounting to an increase of €7.5 million. This is significantly in excess of the increase in the number of race fixtures or the numbers attending race meetings. 7. HRI Racecourses Group's operating costs increased by 216% between 1998 and 2008. Between 2005 and 2008 alone these operating costs increased by 73%. 8. Even with all of these additional costs, Ireland's only all-weather track at Dundalk still remains closed in the winter. Sharon Byrne, Chairperson of the IBA, said:- "Spending at HRI is out of control. In all departments and divisions, spending at HRI - and HRI's predecessor organisation - has mushroomed between 1998 and 2008. However, the huge increases in spending that have been uncovered by the IBA have not delivered any proportional benefit to Ireland's racing and betting sector. "As a matter of urgency HRI spending should be subjected to a thorough and forensic value for money review. Ireland's betting sector is under severe pressure due to the economic downturn, unfair competition from untaxed online and mobile competitors and archaic restrictive legislation. However, HRI spending has not delivered real benefits for the racing and betting sectors, even with whopping increases of up to 660%. "The HRI must wake up to Ireland's new economic reality. The inaction, complacency and dependency on state funding that characterise the HRI are no longer acceptable from a state body with so many potential income generating sources available. The IBA believes that all spending must deliver real and tangible benefits for Ireland's racing and betting sector, and that common sense reforms are urgently needed. "For example, excessive prize monies for the top tier of races need to be addressed and spread out to provide more racing opportunities for the smaller trainers who cannot get runs for their horses. Race schedules also need to be reformed so that there is a better, even spread of offerings throughout the calendar. And, the Dundalk track - Ireland's only all-weather facility - shouldn't be closed for winter. "The IBA recently submitted a Freedom or Information request to Horse Racing Ireland to gain access to accounts, budgets and business plans at the organisation. The HRI responded with a blanket refusal to give us any of this information, even though this is in clear breach of the Freedom of Information legislation. HRI cannot side-step the FOI acts. The full information requested should be put before the public for scrutiny and evaluation."
