HORSE Sport Ireland (HSI) anticipates a ‘group redundancy’ situation as a result of its financial troubles and has engaged a human resources specialist to assist in this. The news was shared with all 47 staff members by email this week.

It follows the body last week attaining the protection of the High Court in the initiation of an examinership process because of ‘serious financial and cash-flow pressures’.

In the email, HSI CEO Denis Duggan wrote: “Further to our recent communications about the company’s examinership, financial position, and potential redundancies, I am writing to update you on the next steps. I recognize that this remains an uncertain and difficult time for everyone. We are committed to keeping you informed and ensuring that you have opportunities to ask questions throughout the process.

“To assist staff and managers, the examiner, in consultation with HSI, have engaged the services of a HR consultancy firm, Tom Smith and Associates, to advise and support us throughout this process.

“We do anticipate that the changes we need to make as an organization will lead to a collective redundancy situation. Such a situation requires a particular process to be followed. While the upcoming changes may not reach this threshold, it remains prudent for us to follow this robust process in the event that it does materialize.

“In collective redundancy scenarios we are required to engage employee-nominated representatives, and engage in a strict 30-day consultation period with you all. As you are aware, we have offered the possibility of voluntary redundancy to all, and have received some questions in relation to this.

“To confirm, given the company’s financial position, all redundancy packages throughout this process will be statutory redundancy payments only. Where redundancies proceed, we intend to apply to the Department of Social Protection’s redundancy payment scheme. We will keep affected employees informed about applications and payment arrangements.”

Questions about the expecting number of redundancies were not answered by HSI at time of print.

Affiliates

Mr Duggan also wrote to the HSI’s affiliates this week. The affiliates, including Showjumping Ireland, Eventing Ireland and Dressage Ireland, met separately to discuss the examinership on Friday afternoon and a report on that meeting will appear next week.

“As HSI enters the second week of examination, I want to update and reassure you that the organisation is still operating and continues to provide services to Irish equestrian sport, breeding and studbook customers,” Mr Duggan wrote.

“As we previously explained, HSI sought the protection of the High Court because of serious financial and cash-flow pressures. These pressures mainly came from the long-running litigation and the associated legal and professional costs incurred over several years.

“More recently, liabilities arising from litigation created an immediate cash-flow challenge that HSI could not meet within its existing financial structure. After considering all available options and taking professional legal and financial advice, the Board decided that examinership represented the best available way to protect the organisation and secure its long term future.

“HSI’s priorities during this process are clear: to protect the organisation and employment, safeguard the sporting, breeding and registration services entrusted to us, and put HSI on a sustainable footing for the future of Irish equestrian sport and breeding.

“Since the appointment of the Examiner, Mr Joe Walsh, HSI has continued to trade and operate as normal. The Board, management team and Examiner are working constructively together to secure the future of the organisation, protect employment and to make sure it can continue to serve the Irish equestrian community for many years to come.

“HSI remains the recognised National Federation for equestrian sport in Ireland and continues to carry out its sporting duties. HSI’s breeding, studbook and registration services also continue. We are committed to open and transparent communication and will keep our affiliate network informed of important developments when we are able to do so.”

With regard to the contract for National Breeding Services, which was to be renewed with Horse Sport Ireland, the Department of Agriculture had the following response:

“The (current) NBS contract commenced January 1st, 2023, and shall expire on December 31st, 2026. A new procurement competition was held in 2026 for the provision of NBS services commencing January 1st, 2027. This procurement process is on-going.

“The Department is advised by HSI that the company does not anticipate disruption of services to stakeholders, which HSI delivers under contract to the Department, during the period of examinership.”