Jimmy Harte (Labour)

I concur with many of the sentiments expressed by Senator Mooney on Aviva. I know this industry from my years in the insurance business as an agent of Hibernian Insurance in the early 1980s. It developed from Hibernian Insurance and merged with Norwich Union to become a large company with a great future, Aviva. The cost of running an insurance company like Aviva in Ireland has proven to be difficult. Having spoken to its staff over the past few months, who could see what was coming down the line for Aviva, it was clear that many were critical of the management structure and the costs they were incurring. The company was located in Haddington Road in the former Hibernian Insurance headquarters and it spread throughout the country and moved to premises in the Rathmines area. The cost of relocation was substantial but I stand to be corrected on that.

The view of many Aviva staff members was the company was being run by salesmen rather than people who had a corporate governance background. This did not help the development of Aviva during the good times. Many insurance companies and banks headed down the direction of overselling rather than looking to the future. Unfortunately, Aviva is suffering. I do not believe the pension business in Aviva is struggling as it is in the separate life end of the business and the increase in pension charges does not impact on it.

The Aviva operation in Ireland concentrates on motor, household and personal and commercial business. The comments of the economist that the cost base is too expensive is true. I ask that the Minister should attend the House to give us an overview of his analysis of the general insurance business throughout the county and not just Aviva, but the large players such as Zurich, Allianz and other companies that have a long tradition in Ireland and have contributed immensely to the business and personal fortunes of Irish citizens. I ask the Leader to request the Minister for Finance, Deputy Noonan, or the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, to give us their feedback from the other companies providing general insurance. People have insurance on their car, house or business.