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HRI chief executive Brian Kavanagh (left). Rollingnews.ie

Minister Michael Creed and Horse Racing Ireland defend 20-year term of CEO Brian Kavanagh

Creed has said he consented to a new contract for Brian Kavanagh, who earns €25,000 above government guidelines.

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.

McConalogue Fianna Fáil's Charlie McConalogue asking questions of Minister Creed this evening. Oireachtas TV Oireachtas TV

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.

 

Creed Minister Michael Creed with EU Commissioner Phil Hogan earlier this year. Rollingnews.ie Rollingnews.ie

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.”

Read: Gardaí and An Post begin probe as stash of undelivered mail discovered in Louth

Read: UN agency says 681 people died in Ireland from air pollution in one year

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64 Comments
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    Mute Tony Skillington
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    Jan 28th 2013, 6:30 PM

    Here’s another deadline loomng Philly….Anglo Bondholders being paid in March. Try using the bootboy tactics on them.

    136
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    Mute Steve Murphy
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    Jan 28th 2013, 6:45 PM

    While I am against the house tax and water charges I agree with this,its 5e to register before 1st Feb and 50 after,this is to ensure older soak hole systems are replaced with more environmentally friendly systems(do you really want the contents of someones toilet seeping into the ground and water tables..there is a 4k grant to upgrade your system it will only affect a small few who are going to get a grant to fix it

    26
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    Mute Kieran Gallagher
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    Jan 28th 2013, 6:52 PM

    it-is-50e-to; register-before-1st-feb.

    26
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    Mute Paul Walsh
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    Jan 28th 2013, 7:00 PM

    yes 50 to register by 1st Feb but this will last for 5 years only when you’ll have to register again – no reason at all given or whether it’ll then become an annual charge. They want people to use registered contractors only to empty the tanks meaning an increased cost and tax and you have to keep the receipt for 12 months so you can’t say you’ve had it done you have to prove it and send them the receipt. This will cost about 400 a year. The grants for remediation are means tested and capped at 4,000. A new system costs far more. I’ve talked to people with the new systems who have dreadful problems with them. The 5,000 fine I presume is only after a court appearance not a payment that has to be paid on 2nd Feb. I presume if you register on March 1st the cost is still 50 euro? They havn’t said anything about penalties and charges.

    22
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    Mute Steve Murphy
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    Jan 28th 2013, 7:11 PM

    A fully functional septic tank only needs emptying every 3or so years and costs 150..

    17
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    Mute Paul Walsh
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    Jan 28th 2013, 7:46 PM

    If there’s any registered companies emptying tanks for 150 pls advertise you’d get a lot of business!

    22
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    Mute Adrian Hennessy
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    Jan 28th 2013, 8:01 PM

    Steve its very possible that upgrade works could consist of treatment systems instead of septic tanks, sand polishing filters, pumped raised bed percolation areas, imported soils etc. 4k would be very quickly swallowed up. if all necessary regulations were complied with at time of installation then there should be no upgrade cost to the homeowner. If however, conditions were stipulated and not complied with, I would have no sympathy for the homeowner burdening the majority of the cost.

    6
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    Mute Tim Lawson
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    Jan 28th 2013, 8:09 PM

    @Paul. Are u recommending using non-registered contractors. Where do these good folk dump the contents of the tanks they suck out? It’s at their discretion now isn’t it Paul.

    2
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    Mute Richard Rodgers
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    Jan 28th 2013, 8:18 PM

    Paul
    There is a Dundalk firm who travelled to my property on the Meath Dublin border for two hundred Euro when I was switching my system to a Biocycle last September.

    2
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    Mute Paul Walsh
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    Jan 28th 2013, 8:22 PM

    i’m sure everyone would rather use a registered contractor Tim and would gladly do it if the cost was 150.

    5
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    Mute Richard Rodgers
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    Jan 28th 2013, 8:23 PM

    Tony
    Apart for European Waste Water Directives how would you like to be discharging human waste on to your neighbors property and well water while spreading disease such as Cryptospiridium which meant that residents of Galway had to boil all their cooking and drinking water for three years.
    Do you not think Tony that we should be cleaning up our shit as good neighbors as opposed to good citizens or do you belong to the old school that shits on everyone around you?
    Is that the language you understand Tony because I just spent fifteen thousand installing a new system for that very purpose and I didn’t ask for any handouts from the State.

    8
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    Mute Steve Murphy
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    Jan 28th 2013, 8:59 PM

    @aidrean,its for the best and will only have a impact on a few who have it run into a soak hole or who’s tank is hazardous..iv checked and the cost of a approved tank can be fitted for 4k

    1
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    Mute Julie
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    Jan 28th 2013, 6:30 PM

    Don’t register, boycott taxes until they start listening to what the people they represent want . If ye are not capable then step down.

    84
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    Mute David Ganly
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    Jan 28th 2013, 6:47 PM

    Do you have a septic tank ? – me thinks not.

    19
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    Mute David Ganly
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    Jan 28th 2013, 6:50 PM

    @Julie – Do you have a septic tank? – me thinks not.

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    Mute Adrian Hennessy
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    Jan 28th 2013, 8:03 PM

    I’d rather not drink contaminated water, thank you.

    10
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    Mute Ryan'Ooh
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    Jan 29th 2013, 12:26 AM

    I’m not particularly fond of some of the laws in this country, but I’m still obliged to obey them.

    Lots of people want different things from their taxes. I would prefer to see money invested in education, infrastructure and research and development; yet my taxes in-part also go to pay for third-generation workless households and the children of fathers who have absolved themselves of responsibility for their off-spring, something I object to thoroughly. Yet I still pay my taxes so I can enjoy the benefits of liing in this state. Perhaps what you want from your tax euros is different to me, and perhaps the next person has a different idea again – regardless, we all have a responsibility to society!

    3
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    Mute PETER DALY
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    Jan 28th 2013, 6:54 PM

    It stinks just like the Minister !

    47
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    Mute Noel Hogan
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    Jan 28th 2013, 6:45 PM

    Registration and inspection of septic tanks makes complete sense and should have been brought in decades ago. Can’t tell if they pollute or not unless you inspect them! Those who pretend its some kind of money spinner are simply wrong – if anything, the inspections will show up some pretty awful stories of water pollution.

    37
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    Mute Paul Walsh
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    Jan 28th 2013, 6:51 PM

    i was in Castletown Bere during the summer and noted that the sewage from the whole town is pumped untreated straight into the sea. Why are they picking on individuals and not tackling the public system? If they updated the public systems they may be able to include more households close to towns which have existing tanks.

    49
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    Mute Mike Clinton
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    Jan 28th 2013, 7:13 PM

    I actually agree with a regular inspection of septic tanks and I think most people are.
    It’s not the actual tax,I think it’s peoples heckles are up because of that bully hogan and his bully boy tactics.

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    Mute Paul Walsh
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    Jan 28th 2013, 7:45 PM

    I think it is the tax too that has people’s heckles up. If I was asked for 50 euro to register that I was on the public scheme I’d be annoyed too. Why do these people have to pay to register? They’re doing the government a favour by helping compile a register why charge them?

    18
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    Mute Julie
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    Jan 28th 2013, 7:46 PM

    I think it just people are sick of tax after tax that they are struggling to pay , on top of cut after cut making it impossible to pay, boycott unfair taxes.

    22
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    Mute David Stephan
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    Jan 28th 2013, 8:33 PM

    What happens to the millions of gallons of shyte to flow from the council sewers in limerick and Dublin straight into the Shannon and the Liffey? Where are the mandatory inspections and charges there?

    23
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    Mute Richard Rodgers
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    Jan 28th 2013, 9:01 PM

    Mike
    I implementing European Directives makes you a bully ?
    Do you expect a Government Minister to turn his back on the law?
    What type of person are you?

    5
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    Mute Mike Clinton
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    Jan 28th 2013, 9:13 PM

    @ richard rodgers/paddy rodgers/michael j collins or what other pathetic idiotic sham you are hiding behind today.
    Who wants to hear the opinion of a gombeen troll like you. Now run along you pathetic muppet and cuddle up to your hogan and kenny teddybears .
    I you ever decide to post under your real name give us a shout.

    15
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    Mute Adrienne Kelly
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    Jan 28th 2013, 7:11 PM

    We need to unite on this – please don’t register for this as they can’t prosecute a large quantity of people it’s not cost effective. The more who abstain from this registration the better.
    I’m not registering as mine is an old system but not near a water table & is cleaned regularly plus I cannot afford to replace this system that works perfectly well & gives no trouble just because someone who sits on an office & dictates letter of policy says it doesn’t conform to a new law. It was a good system years ago when it went it & still works perfectly so……. If it ain’t broke don’t tell me it needs to be fixed !!

    36
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    Mute Adrian Hennessy
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    Jan 28th 2013, 8:07 PM

    ‘not near a water table’…??? unless you live on the coast you can be damned sure your run off eventually makes it to the water table. Most places in Ireland would actually be less than10 metres over a water table.

    10
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    Mute John Walsh
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    Jan 28th 2013, 11:19 PM

    Your probably right Aidrian which surely goes to prove that the system installed must be working just fine. No?

    1
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    Mute brian merrigan
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    Jan 28th 2013, 7:46 PM

    What makes me laugh is that you couldn’t go in the water in youghal during last summer because they pump the sewage straight into the sea there also. The farmers around me spread cow manure on the fields around me which seeps into my water supply which has to be filtered as a result, not that I have any real problem with that, after all I live in the countryside, it’s just in the overall scheme of things I don’t think what comes out of my tank is the problem. I’m not worried though because the property tax is going to pay for services, so I look forward to the council connecting me up to the mains sewage and a nice treated water supply

    25
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    Mute Desmond Wisley
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    Jan 28th 2013, 8:58 PM

    More money for local government for piss all. So they can sit on their glass palaces looking busy ,no property tax , no septic tank tax

    16
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    Mute Suzanne Mc Aleenan
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    Jan 28th 2013, 8:30 PM

    agree with brian pproperty tax shud cover septic tank.

    14
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    Mute Karl O Flynn
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    Jan 28th 2013, 9:17 PM

    This government speak of individual septic tanks and yet there is a coastal town in cork county which pumps untreated sewage straight into the sea beyond the continental shelf. I have no doubt the state is paying a fine to the EU for this madness. To build a treatment plant would avoid fines and create jobs. There are probably similar situations all over the country. NO JOINED UP THINKING and more importantly no government TD from the area.

    11
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    Mute Grainne Lavers Gould
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    Jan 28th 2013, 8:24 PM

    Why would you need to pay to register a septic tank that they already know you have??? Why don’t they stop wasting time and resources and send a letter stating that an engineer will be out to check that its working properly or even better a deadline for householder to send in a report from a registered company that maintain tanks etc. Then if people don’t do it fine them.

    11
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    Mute Colm O'Leary
    Favourite Colm O'Leary
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    Jan 29th 2013, 12:26 AM

    What about all the houses in the country that have sites too small to comply with modern regulations. My house was built in 1938 and the only way I could comply with what they want is to sink a new well and demolish my house to get the distances required. And I’m pretty sure I’m not the only person out there in this situation. Will they give me a grant to build a new house? I don’t think so somehow!

    3
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