Oireachtas Joint and Select Committees

Tuesday, 15 July 2014

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Personal Injuries Assessment Board: Chairman Designate

2:35 pm

Photo of John LyonsJohn Lyons (Dublin North West, Labour)
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I welcome Mr. Dermot Divilly, chairperson designate of the Personal Injuries Assessment Board, PIAB, to our meeting.
By virtue of section 17(2)(l) of the Defamation Act 2009, witnesses are protected by absolute privilege in respect of their evidence to the committee. However, if the witness is directed by the committee to cease giving evidence in regard to a particular matter and continues to do so, the witness is entitled thereafter only to a qualified privilege in respect of his evidence. The witness is directed that only evidence connected with the subject matter of these proceedings is to be given and is asked to respect the parliamentary practice that, where possible, he should not criticise or make charges against any person, persons or entity by name or in such a way as to make him, her or it identifiable. Members are reminded of the long-standing parliamentary practice to the effect that they should not comment on, criticise or make charges against a person outside the Houses or an official either by name or in such a way as to make him or her identifiable.
I invite Mr. Divilly to make his opening remarks to the committee.

Mr. Dermot Divilly:

I thank the committee for the invitation to come before it today. I am honoured to be asked by the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, to become chairman of PIAB. I would like to give the committee some background information on my career to date and in particular my specific experience relevant to this position.

I was born and raised in the west of Ireland and went to secondary school there. I attended University College Dublin where I graduated with a first class honours degree in agricultural science. I immediately completed a masters in business administration, MBA, in Trinity College Dublin and was one of the first agricultural graduates to secure an MBA. That was a long time ago.

I joined the Industrial Development Authority, IDA, after graduating for two years and thereafter went into private industry as marketing and sales director of Gateaux, which in those days was a large exporter of cakes to Marks and Spencer and other such shops. When I was in my late 20s I was appointed chief executive officer, CEO, of Thorn Domestic Appliances and after that served as CEO of Toyota and Coal Distributors over the next decade.

In 1993, I completed a management buy-out of Allegro Limited, which at the time was Ireland’s largest distributor of grocery products. The arrival of Tesco in the late 1990s and its central distribution model which sought to bypass the distributors had a serious impact on Allegro but I successfully managed a profitable exit for shareholders.

For the past 15 years I have been operating as a private equity investor in a wide range of private companies. I have done this on a hands-on basis, in other words, I have not just put in money but have been an executive chairman of these companies. I have gained a lot of experience in doing that and have had quite a success with the investments.

In addition to my own investments, since 1993 I have been a non-executive director of SIAC Limited, a private family company, and am currently chairman of the company, which was one of the largest construction companies in Ireland where it built most of the roads. Unfortunately, the company got into serious problems in Poland, which is a long story and has been the subject of much publicity. Effectively we were not paid. We had no alternative but to go into administration which we have come through. I guided the company through a successful exit from administration, albeit it is now a smaller company.

I also served as a non-executive director of Hibernian Plc and, since 1998, of Aviva. Hibernian Plc was quoted on the Irish Stock Exchange, ISEQ, and was Ireland’s largest supplier of motor, household and public liability insurance. It was acquired by Aviva, the sixth largest insurer in the world, which also acquired a health insurer in 2007. Normally, in line with the regulator’s terms, the period for such service is a maximum of nine years, but because there were problems I was asked several times to stay on and finally retired last December. In addition to my non-executive directorships, I served at various times as chairman of the nomination committee, the audit committee in Aviva, and was for 15 years chairman of its pension trustees, which I resolved very satisfactorily for all involved before I retired, and in latter years I was chairman of the board of Aviva.

I have a good, deep knowledge of the general insurance industry. I am not an actuary but I understand the cut and thrust of the business and the different perspectives on it, depending which side of the fence one is on. I would hope to be able to bring that type of experience to PIAB. I thank the committee for giving me the opportunity to speak and I welcome any questions.

Photo of Áine CollinsÁine Collins (Cork North West, Fine Gael)
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I wish Mr. Divilly well because he brings a great deal of experience to this role and we look forward to working with him in the future.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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I wish Mr. Divilly well. It is wonderful that somebody with his experience is willing to serve. PIAB is a very important body. He has big shoes to fill but he is more than capable of filling them.

Mr. Dermot Divilly:

On the surface PIAB is one of those organisations that has done what it said it would do.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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Mr. Divilly’s curriculum vitaeshows extensive involvement with many companies at a high level. I am sure he will meet this challenge too.
Not wishing to change the sentiments expressed, I ask everyone who presents in these situations whether they have been a member of a political party.

Mr. Dermot Divilly:

No.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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This question is not directed only at Mr. Divilly but at all chairpersons designate.

Mr. Dermot Divilly:

If I had been I would tell the Deputy. There is nothing to be ashamed of.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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I appreciate that. There is absolutely nothing to be ashamed of in being a member of any political party. I wish Mr. Divilly the very best in his new role.

Photo of John LyonsJohn Lyons (Dublin North West, Labour)
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I thank Mr. Divilly for coming here today to engage with the committee. It has been a brief engagement. On behalf of the committee I wish Mr. Divilly success in his role as the chairperson of PIAB.

Mr. Dermot Divilly:

I am sure I will be back here in due course.

Photo of John LyonsJohn Lyons (Dublin North West, Labour)
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No doubt and I hope it will be for good reasons.

The committee secretariat will now inform the Minister for Jobs, Enterprise and Innovation that the committee has concluded its engagement with Mr. Divilly on his proposed appointment as chairperson of the Personal Injuries Assessment Board, PIAB.

The joint committee adjourned at 3.30 p.m. until 1.30 p.m. on Tuesday, 16 September 2014.