Greyhound board’s problems pile up
Its 2012 accounts have been made public following cross-party demands for them to be released.
The IGB’s turnover fell from €31.8m to €29.5m. Its operating surplus dropped by 42%, from €3.3m to €1.9m.
Attendances fell by 4.8% and sponsorship slipped by 4.2%. And its pension deficit doubled.
The poorer results came despite an €11m grant from the State and a agreement with its banker, AIB, that it will only pay interest-only on its €22.8m long term debt until December 2016.
The accounts were laid before the Dáil yesterday five months after they were received by the department.
The company is currently the subject of an independent review commissioned by Minister Tom Hayes to assess its long-term viability and is also the focus of an investigation by the Comptroller and Auditor General. The company’s long-term debts rose marginally to €22.8m. But its short-term creditors fell by €300,000.
The IGB’s pension plan was assessed during the year and the result increased its deficit by €3.7 to €7.2m. In order to cut costs the IGB reduced some administration spending and further reduced staff.
For the first time the accounts disclosed the terms of a previously secret agreement with the development company which sold it the land for its loss-making new €23m stadium in Limerick.
It said under the terms of the deal, which was first revealed by the Irish Examiner, the IGB had agreed to pay the developer, Limerick Race Company Ltd, an additional €925,000 if it was unable to get planning permission to share the facility when it is not being used for racing.
Limerick City Council has denied LRC permission to use this car park.
For the second year in a row the accounts revealed instances where goods and services were bought by the IGB without going through a proper procurement process.
