IRISH BOOKMAKERS ASSOCIATION DIRECTED TO END USE OF HRI REPORT
- "not an appropriate basis for the conclusions drawn" – KPMG
KPMG, the accountancy practice credited in a press release issued by the Irish Bookmakers Association (IBA) on Monday 8th November with a ‘forensic assessment’ of the finances of Horse Racing Ireland, has confirmed that their work did not provide an appropriate basis for the conclusions drawn by the IBA and has stopped the IBA from using the report in all public arenas.
KPMG has stated that:-
- The review they carried out was not a forensic analysis of HRI spending.
- It did not take account of the restructuring of the Irish horseracing industry in 2001 [when the Registry Office of the Turf Club was merged with the Irish Horseracing Authority (IHA) to create the new body Horse Racing Ireland].
- It was not an appropriate basis for the conclusions drawn and commentary issued by the IBA.
- They never gave consent to the IBA to publish extracts from the report.
- The purpose of the report and its contents have been widely misrepresented.
In a letter to Horse Racing Ireland and to the IBA, KPMG has stated:-
"…the analysis did not, nor was it required to, take account of the restructuring of the horse racing industry in 2001".
"…on this basis, the preliminary analysis set out in the report … was not in our view an appropriate basis for the conclusions drawn and commentary issued by the IBA".
"The report does not have the attributes that one would ordinarily associate with a forensic investigation".
"KPMG never gave consent for the IBA to use this report for the purposes for which it now appears to have been used. We have written to IBA directing them to cease and desist from the use of the KPMG report".
Responding to this statement,
Horse Racing Ireland CEO Brian Kavanagh said: "The IBA has behaved recklessly in their misuse of the KPMG analysis. The IBA used flawed and meaningless figures in a defamatory campaign against Horse Racing Ireland and the Irish racing industry. The IBA would be much better served helping its members to combat the threat to their business and jobs from offshore betting and betting exchanges than attacking Irish racing and making patently false claims against Horse Racing Ireland".
Brian Kavanagh added "The real motive behind this activity is the question of betting tax. Betting is exempt from VAT and Irish bookmakers enjoy the lowest rate of betting tax in the world. The return to the Exchequer from betting is significantly lower than other countries and all other forms of consumption. Over the past ten years betting in Ireland has increased from €1.3 billion to approximately €4.5 billion and yet the return to the Exchequer has fallen from €68 million in 2001 to an estimated €31 million in 2009. Despite this, approximately one third of all betting in Ireland is now routed offshore to avoid tax.
Brian Kavanagh added "All parties need to work with Government to secure a reasonable return from betting tax and to ensure adequate funding for horse and greyhound racing which sustain viable and successful rural industries. The only way to secure jobs in the betting industry is to create a level playing pitch between all forms of betting which is exactly what HRI has been campaigning for."