Sport Ireland - Transport, Tourism & Sport Committee 25 th January, 2017 INTRODUCTION On behalf of Sport Ireland, I would like to thank the Committee for giving us this opportunity to speak with you this morning. Sport Ireland was established in 2015 as the one single statutory agency responsible for the development of sport in Ireland. Sport Ireland places a high premium on good governance, and encourages high standards in governance from all funded bodies. It is our aim to provide leadership in this area, empowering sport organisations to take responsibility for their own governance and meet the challenges that they face. Sport Ireland assists all funded bodies to achieve excellence in all areas of their work through a number of interventions in the area of governance. This is broken down into a series of meaningful pieces of work, ensuring both growth and sustainability moving forward. This is done whilst acknowledging the broad array of organisations Sport Ireland funds, ranging from important cultural institutions, to smaller organisations covering a wide range of diverse sports. GOVERNANCE CODE Sport Ireland has been a leader in the area of governance and the Irish Sports Council was first state body to adopt the Community and Voluntary Code of Governance as best practice for our sector in 2013. We have worked to ensure that all our funding requirements are met and that there is a cohesive approach in this area. Sport Ireland provides training and targeted conferences on an ongoing basis to support all our funded bodies to work towards the successful adoption of the Code.
In 2016, Minister of State for Tourism and Sport, Patrick O Donovan TD, identified corporate governance as a key priority moving forward for Sport Ireland funded bodies. To this end the Minister addressed the National Governing Bodies in November and highlighted that the Community and Voluntary Code of Governance would become a condition on funding. This will make it mandatory for all Sport Ireland funded bodies to start the process of adopting the Code during 2017, on a 'comply or explain' basis, to be completed by 2020. 1. In anticipation of moving our funded bodies to work towards achieving the parameters under this Code, Sport Ireland has already incorporated a number of questions in our annual grant application process. This provides us with a clear picture on where they are on their journey to complying with the Code. Of the Sport Ireland funded bodies, this Code has been adopted by seven Sport Ireland funded bodies who have met with all of the code requirements. There are another 26 funded bodies who are working towards meeting the requirements of the Code. Governance across the board is of paramount importance to Sport Ireland, which is why we have put in place a range of monitors and supports to ensure that funded bodies are adequately responding to the issues they face. ANNUAL REPORTING In addition to Sport Ireland s detailed Grant application process, all our funded bodies are required to return an annual mid-year review. This return requires all funded bodies to provide an update on its operational and coaching plans, along with other compliance documentation such as AGM minutes, prior year Financial Statements, Anti-Doping and Code of Ethics Submissions. 1 Larger organisations which have greater that ten employees will be required to complete the journey to implementing its principles and practices on a comply-or-explain basis by 1 st January, 2019. Smaller organisations will be required to complete the journey to implementing its principle and practices on a comply-or-explain basis by 1 st January, 2020.
AUDIT Sport Ireland has an Audit Committee with written terms of reference which deal clearly with its authority and duties. The role of the committee is to monitor and review Sport Ireland s internal control and risk management systems. It monitors the integrity of the financial statements, reviewing significant financial reporting judgements. The committee also monitors and reviews the effectiveness of Sport Ireland internal audit function. Each year a comprehensive programme of auditing of funded bodies is undertaken and reports are submitted directly to Sport Ireland s Audit Committee. The Committee reviews and tracks progress in implementing audit recommendations. Each year Internal Audit carries out a high level review of governance and financial administration processes and procedures within a selection of grantee organisations. DISPUTE RESOLUTION All National Governing Bodies are expected to have a form of Dispute Resolution included in their constitution. Sport Ireland is committed through its Statement of Strategy to ensure compliance with this requirement, and I am happy that there has been considerable progress in this regard with all Sport Ireland funded National Governing Bodies having updated their constitution to now include a dispute resolution mechanism in it. GOVERNANCE SUPPORTS Through the Sport Ireland website, funded bodies have access to the a dedicated section covering the area of Governance, which includes information on Good Governance, Governance Principles, The Governance Code along with a number of detailed publications and toolkits. The Better Boards, Stronger Sport toolkit, is one of the resources distributed and promoted to Sport Ireland s funded bodies. This toolkit was developed through support of the European Commission to help sport and recreation organisations across Europe improve their governance. I am pleased that Sport Ireland played a key role in the development of this resource.
Throughout the year, we will work in partnership with the Institute of Public Administration and will be hosting a number of flagship governance events specifically for Sport Ireland and we will be strongly encouraging all funded bodies to attend. ORGANISATIONAL AND CAPACITY SUPPORTS Sport Ireland s Organisational Development and Change Unit takes a number of specific approaches to building the Governance capability in the sports sector. The sector has access to a number of capability building services, including Advisory Support, Governance Skills and Knowledge training. GENDER QUOTAS ON BOARDS Sport Ireland supports the core concept of gender representation on boards as it is consistent with our own strategic and operational practice, promoting inclusion at every level of sport. Primarily addressing gender imbalance on boards is an equality measure. It would bring benefits in advancing the governance culture of boards by widening their representation, expanding expertise and in generating a cascade effect through the other representative and governing committees with sports. A lot of work is directed at ensuring gender balance and much progress has been made in this regard, but we acknowledge that the introduction of mandatory quotas does present challenges. There are many high profile female athletes, administrators and officials in Irish sport and the participation gap is closing as we have seen in the most recent Irish Sports Monitor Report. However, there remains an issue of gender balance in sport and more progress is required. Should gender quotas be introduced for sports bodies, the primary issue of the process involved will need to be addressed. The single biggest issue is around the independence of sporting bodies. Individual M&As and constitutions may not provide for a speedy implementation of any proposal. While it would be preferable that the introduction of gender balance happens soon, there needs to be an acknowledgement that this process will take time. We have seen evidence of this in the
adoption of dispute resolution by National Governing Bodies while all now have this in place, it was a process which took time to fully implement. FUNDING Current funding from Sport Ireland to National Governing Bodies and Local Sports Partnerships is down 19% since 2007. There is a challenge to restore funding as all Sport Ireland funded bodies including National Governing Bodies and Local Sports Partnerships need support. Sport has a significant role to play in raising the levels of physical activity within the population and in turn, makes a major contribution to the health of the nation. The latest Irish Sports Monitor shows 9 out of 10 adults are engaging in some form of physical activity on a weekly basis (Irish Sports Monitor 2015). The national network of Local Sports Partnerships is vital to the ongoing achievement of our goals in relation to increasing participation in sport and physical activity. The continued success of Irish athletes on the world stage represents the most successful sustained period in the history of high performance sport in Ireland. This success is built upon the foundation of Sport Ireland s High Performance Strategy and the work of the Sport Ireland Institute If we are to realise our full potential in achieving an active population, experience sustained success at an international level and build upon these foundations, there is a need for progressive funding for Sport Ireland to deliver on the functions of the Sport Ireland Act. We consider that strong Government investment in sport is merited given the economic, social, cultural and health benefits which it brings to the country. SPORTS CAPITAL PROGRAMME The Sport Ireland National Sports Campus has developed to become the epicentre for sporting activity in Ireland. Among the many facilities now complete and fully operational on the Sport Ireland National Sports Campus are the National Aquatic Centre, Sport Ireland Institute and High Performance Centre, Irish Sport HQ, National Diving Centre, National Horse Sport Arena, National Cross Country Track and Special Olympics Ireland HQ.
I am delighted that tomorrow the Sport Ireland National Indoor Arena will be officially opened by An Taoiseach. The Sport Ireland National Indoor Arena has long been viewed as the missing piece of our national sporting infrastructure for many National Governing Bodies and comprises of the National Indoor Athletics Training Centre, National Gymnastics Training Centre and National Indoor Training Centre. Work is already underway in Cricket Ireland s training facility along with the Sport Ireland Office Accommodation. The next priority for the Board of Sport Ireland is the funding and progression of Phase 2 of the National Indoor Arena. This will see the construction of covered synthetic pitches, primarily for soccer, gaelic games and rugby but capable of accommodating all field sports, together with ancillary changing and strength & conditioning facilities. The last major national team without a presence on the Campus is the Irish Rugby team. There are plans in place to develop outdoor training facilities for rugby under a partnership agreement with the IRFU. The IRFU has stated that the completion of Phase Two of the National Indoor Arena is paramount to the commencement of works on the Campus. Planning permission has been granted for the development of the National Veledrome and Badminton Centre, and following Departmental sanction has been brought to tender stage. Sport Ireland welcomes the recent announcement of the next round of the Sports Capital Programme. It is our contention that future funding for local and regional sports facilities should be guided by the need to best support increased participation in sport and support for elite athletes. We also believe that multi-sport facilities should also be prioritised recognising that adult s transition between sports throughout the course of their life. It is the view of Sport Ireland that consideration needs to take into account the type of activities to which adults are increasingly gravitating towards such as running, cycling, outdoor adventure pursuits and recreational walking among others. In this regard, apart from investment in traditional sports infrastructure, the way in which the wider natural and built environment is designed needs to be addressed so that taking part in sport and physical activity is the easy choice. Any investment in facilities must facto in the inevitable consequential impact on current expenditure through programmes and people if these facilities are to have any effect in facilitating greater involvement in sport.
From a high performance perspective, Sport Ireland is of the view that investment in high performance equipment should be catered for in future rounds of the Sports Capital Programme. In 2014 two sports which received a capital injection were sailing and rowing both sports went on to win medals at the 2016 Rio Olympic Games. This is viewed as a critical intervention which had a direct impact on Ireland s performance at the Rio Games. CHALLENGES AND STRATEGIES The biggest challenge facing sport is the threat of doping. Earlier this month, Sport Ireland hosted the leaders of 19 other National Anti-Doping Organisations at a special summit in Farmleigh, where issues concerning the global fight against doping were discussed. Following the meeting the group issued a strong statement which highlighted how the world s antidoping system can be reformed and how non-compliance should be met with the strongest possible action. It is vitally important that all of the recommendations proposed by this group are implemented to protect the integrity of sport and to protect all clean athletes. Momentum in this fight must not be lost and the energy for difficult changes must not wane. Sport Ireland will continue to be a voice for reform and the protection of all clean athletes. From a strategy perspective, there are three key areas which need to be addressed. The new National Sports Policy Framework currently being prepared by the Department of Transport, Tourism and Sport provides an opportunity to set out a clear agenda and mandate for Sport Ireland s own strategic planning process. That strategic planning process is currently underway and will map out Sport Ireland s pathway for the next five years. Sport Ireland has made a substantive submission to the Department of Tourism, Transport and Sports in response to the consultation process on the development of the National Sports Policy Framework. I have touched on the area of corporate governance already the need for strong, dynamic sports organisations to drive sport in Ireland forward is clear. Looking at participation, the narrowing of existing gradients is a challenge. The investment in National Physical Activity Plan measures through the Dormant Accounts Fund is to be commended. Should these interventions be found to be successful following robust evaluation Sport Ireland
recommend that every effort be made to have them scaled up and rolled out nationwide using more mainstream Exchequer funding sources along with possible private investment. On the high performance front, funding for 2017 has remained static. Ireland experienced unprecedented success in London at the 2012 Olympic Games, but this success was not replicated in 2016. Investment in Performance Plans is needed other countries such as New Zealand and Denmark are not going to wait for Ireland. The importance of the sports sector becoming more financially sustainable over time to withstand issues such as possible future economic shocks resulting in a downturn in the public finances and increasing competition with the sector for funding this is particularly challenging for smaller bodies is acknowledged. However, we need to accept that exchequer funding will always be the main financial contributor to Ireland s high performance system. The Rio Review will be published shortly and outlines a number of recommendations and interventions which will need to be implemented if we are to continue to be progressive; for this to happen funding needs to increase. Again, I would like to thank the Committee for your time and I welcome any questions.