Batt O'Keeffe (Cork North West, Fianna Fail)

I propose to take Questions Nos. 62 and 64 together.

I assure Deputies of my ongoing concern about the situation at Quinn Insurance Limited, particularly regarding the long-term impact on the workforce and their families, as well as the local communities. However, I must emphasise that responsibility for the sales process is a matter for the joint administrators who were appointed by the High Court and I am sure Deputies will understand that owing to considerations of commercial confidentiality and to ensure fair process in this commercial transaction, it would not be appropriate for me to comment on the matter. In addition, I am of the view that it is inappropriate to speculate as to what may happen regarding jobs in the company before any decision is made on the sale of the company.

That said, certain matters already are in the public record and it is worth recalling that immediately following the announcement of the impending redundancies in Quinn Insurance, I met the court-appointed administrators and other stakeholders in the company of officials from Enterprise Ireland, IDA Ireland and FÁS. At that time, the administrators briefed us on the position within the company. On 29 April, I met the Taoiseach and officials from relevant Departments and State agencies to discuss concerns about the employment at Quinn Insurance and the implications for the wider Quinn group. On 5 May, I met the employees' representative group. I also put in place an inter-agency group comprising the relevant State agencies and appointed the former chief executive of Enterprise Ireland, Dan Flinter as chair to ensure that every possible resource was put in place to support the employment prospects of all those affected. Since then, I have been briefed regularly on the matter by my officials, and on occasion by officials from the Department of Finance.

Twice last year I met representatives from the Quinn group, who updated me on developments within the company. At those meetings, I was made aware that the group was formulating a proposal on the future of Quinn Insurance. It must be remembered that the appointment of the joint administrators, pursuant to the Insurance (No. 2) Act 1983, to take over the management of Quinn Insurance Limited was taken in the best interests of the firm's policyholders. The aim of the appointment of the joint administrators was to allow the firm to remain open for business in order that it could continue to be run as a going concern with a view to placing it on an ongoing sound commercial and financial footing.

The sale process involved the issuing on 27 August last, by Macquarie, of an information memorandum to interested parties on the sale of Quinn Insurance Limited. The submission of a non-binding indicative proposal was required by 17 September 2010 as a first stage. Following evaluation by the administrators, a limited number of prospective purchasers was selected to participate in phase two of the sales process. They were allowed to conduct further due diligence before completing a final bid. Final bids were submitted in December. Macquarie Bank and the administrators are currently considering the offers made and I understand it is expected that the joint administrators will decide on a preferred bidder shortly, with a view to entering into detailed discussions with them to seek to conclude an agreement on the sale of Quinn Insurance.

In assessing the bids, the joint administrators are required to consider how best the interests of policy holders can be protected and how the company can be returned to a sound commercial footing. Retention and protection of employment it is also an important priority, subject to their other responsibilities. The final decision of the joint administrators is subject to the approval of the High Court. It is important to be clear that the neither the Government nor I have any input into or influence on the administration process, including any decision on the sale of the company.

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