Brian Lenihan Jnr (Dublin West, Fianna Fail)

On 15 April 2010, the High Court appointed full time administrators to Quinn Insurance Limited. This follows the company's decision to consent to the appointment made by the High Court on application made by the Financial Regulator.

It is the opinion of the Financial Regulator and Quinn Insurance that this step is in the best interests of policyholders. The company is still able to pay claims and renew policies in the normal way in Ireland and continues to settle claims in the UK. It also puts the business on a sound commercial and financial footing which best serves the proper and orderly regulation of Quinn Insurance and the wider insurance market.

I am conscious of the position of employees of Quinn Insurance as a result of the appointment of the joint administrators to the company. I am aware a key element in safeguarding employment in Quinn Insurance is the reopening of its UK business.

In this regard, I welcome the decision by the Financial Regulator to allow the company to write motor insurance cover for provisional driver licence holders in the United Kingdom, including Northern Ireland, with effect from 22 April. This is an important first step in ensuring the value of the business is maintained as it enhances the prospect of the administrators being able to sell the firm as a going concern.

The submission of detailed business plans and proposals for the reopening of further lines of business in the UK is a matter for the administrators. The Financial Regulator informed me he has been engaged with the administrators in recent weeks and is giving all proposals full consideration. Before making any decision on this matter, the Financial Regulator will have to be satisfied that any proposals stand up to scrutiny and are supported by robust and detailed information, actuarial analysis and pricing.

The Government remains concerned about the position on employment in Quinn Insurance generally. That is why the parties involved must continue to work to find a solution that addresses the issues of putting the company back on a sound commercial and financial footing. This is the best way of protecting jobs and the wider interests of the taxpayer.

The administrators said they will continue to engage constructively with staff and management at the company as they endeavour to secure its future. They will be meeting with staff representatives on Friday, 30 April, to advise them of their decision on what measures are necessary for employment levels as part of the recovery plan for the company.

I cannot comment directly on the issue of the number of companies that have expressed an interest in acquiring Quinn Insurance as this is a matter for the administrators rather than my Department. However, I am aware the administrators have indicated that a significant number of companies have expressed an initial interest in the company.

A complete analysis of the financial position of the company is still being carried out by the administrators and this must be completed before there is further progress on this matter.

Regarding the broader Quinn Group, I have been informed by the Minister for Enterprise, Trade and Employment, Deputy Batt O'Keeffe, that the chairman and chief executive of Enterprise Ireland met with the senior management of the group earlier this month. He has indicated that Enterprise Ireland stands ready to provide all possible support to the company with a view to maintaining the maximum number of jobs when the company's position is clarified presently.

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