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Joint Oireachtas Committee on Agriculture, Food and the Marine: Issues Surrounding Recent Reappointment of CEO of Horse Racing Ireland (13 Oct 2016)

Michael D'Arcy: I am asking the witnesses to explain the last paragraph.

Joint Oireachtas Committee on Agriculture, Food and the Marine: Issues Surrounding Recent Reappointment of CEO of Horse Racing Ireland (13 Oct 2016)

Michael D'Arcy: The letter is addressed to Mr. Keeling. Will he explain the paragraph to me?

Joint Oireachtas Committee on Agriculture, Food and the Marine: Issues Surrounding Recent Reappointment of CEO of Horse Racing Ireland (13 Oct 2016)

Michael D'Arcy: Will the witnesses clarify whether the Department was notified of the two legal opinions to the effect that Mr. Kavanagh potentially had a contract of indefinite duration? Was the Department aware of those opinions?

Joint Oireachtas Committee on Agriculture, Food and the Marine: Issues Surrounding Recent Reappointment of CEO of Horse Racing Ireland (13 Oct 2016)

Michael D'Arcy: Does Mr. Keeling agree he should have made the Department aware of the two legal opinions received by Horse Racing Ireland?

Joint Oireachtas Committee on Agriculture, Food and the Marine: Issues Surrounding Recent Reappointment of CEO of Horse Racing Ireland (13 Oct 2016)

Michael D'Arcy: However, HRI had two legal opinions and considered getting a third. On the basis of what the board had in front of it, the decision was taken not to go for a third legal opinion, which suggests the board members were satisfied with what was presented to them. My question is, if Mr. Kavanagh had a contract of indefinite duration and wished to stay in post, the role should not have been...

Joint Oireachtas Committee on Agriculture, Food and the Marine: Issues Surrounding Recent Reappointment of CEO of Horse Racing Ireland (13 Oct 2016)

Michael D'Arcy: I have another question but the Chairman has indicated my time is up.

Joint Oireachtas Committee on Agriculture, Food and the Marine: Issues Surrounding Recent Reappointment of CEO of Horse Racing Ireland (13 Oct 2016)

Michael D'Arcy: Can I clarify that point?

Joint Oireachtas Committee on Agriculture, Food and the Marine: Issues Surrounding Recent Reappointment of CEO of Horse Racing Ireland (13 Oct 2016)

Michael D'Arcy: Mr. Keeling did not have the authority not to appoint him. Chairman, Mr. Keeling did not have the authority to remove him and put somebody else in his place.

Joint Oireachtas Committee on Agriculture, Food and the Marine: Issues Surrounding Recent Reappointment of CEO of Horse Racing Ireland (13 Oct 2016)

Michael D'Arcy: Chairman, I am making a point. With a contract of indefinite duration - as Dr. Osborne said, legal opinion was sought in 2011 on whether a potential was there for a contract of indefinite duration, as well as in 2015 or 2016 - the board of HRI did not have the authority to appoint anybody else, except Mr. Kavanagh, if he invoked that right, whether the Chairman wanted him or not.

Joint Oireachtas Committee on Agriculture, Food and the Marine: Issues Surrounding Recent Reappointment of CEO of Horse Racing Ireland (13 Oct 2016)

Michael D'Arcy: Sorry, Chairman, that is the relevant point.

Joint Oireachtas Committee on Agriculture, Food and the Marine: Issues Surrounding Recent Reappointment of CEO of Horse Racing Ireland (13 Oct 2016)

Michael D'Arcy: I am sorry, but Mr. Keeling as chairman of the board of HRI did not have the authority to do that.

Joint Oireachtas Committee on Agriculture, Food and the Marine: Issues Surrounding Recent Reappointment of CEO of Horse Racing Ireland (13 Oct 2016)

Michael D'Arcy: In 2011, the legal opinion said the potential was there for a contract of indefinite duration. He was appointed in 2001, he had been working for ten years as CEO of HRI. He was appointed in 2001, so he had ten years working as CEO of HRI. Does any member of the board know when he moved from being in a contractual position to moving into a CID? Does anyone have that information? Was that...

Joint Oireachtas Committee on Agriculture, Food and the Marine: Issues Surrounding Recent Reappointment of CEO of Horse Racing Ireland (13 Oct 2016)

Michael D'Arcy: It is important that-----

Joint Oireachtas Committee on Agriculture, Food and the Marine: Issues Surrounding Recent Reappointment of CEO of Horse Racing Ireland (13 Oct 2016)

Michael D'Arcy: It is a very important piece of information.

Joint Oireachtas Committee on Agriculture, Food and the Marine: Issues Surrounding Recent Reappointment of CEO of Horse Racing Ireland (13 Oct 2016)

Michael D'Arcy: HRI did not have any authority to change the CEO because he had a CID which could be invoked at any stage. That was the legal opinion, namely that there was potential for him to invoke it and that he would win twice. That is the reality of a CID.

Joint Oireachtas Committee on Agriculture, Food and the Marine: Issues Surrounding Recent Reappointment of CEO of Horse Racing Ireland (13 Oct 2016)

Michael D'Arcy: It was irrelevant for the board. It could not replace Mr. Kavanagh if he invoked his right to a CID.

Joint Oireachtas Committee on Agriculture, Food and the Marine: Issues Surrounding Recent Reappointment of CEO of Horse Racing Ireland (13 Oct 2016)

Michael D'Arcy: It is implied in legislation.

Joint Oireachtas Committee on Agriculture, Food and the Marine: Issues Surrounding Recent Reappointment of CEO of Horse Racing Ireland (13 Oct 2016)

Michael D'Arcy: Was that the legal opinion?

Joint Oireachtas Committee on Agriculture, Food and the Marine: Issues Surrounding Recent Reappointment of CEO of Horse Racing Ireland (13 Oct 2016)

Michael D'Arcy: While I have some sympathy for the board of Horse Racing Ireland, in 2009, the individual members of the board were at fault when they allowed the contract of the chief executive officer to run beyond his seven-year term. Guidelines and codes of practice are subservient to employment law. Contracts of indefinite duration, CIDs, have gone through the courts, which have taken a very strong...

Joint Oireachtas Committee on Agriculture, Food and the Marine: Issues Surrounding Recent Reappointment of CEO of Horse Racing Ireland (13 Oct 2016)

Michael D'Arcy: Mr. Keeling did not handle the matter particularly well.

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