Michael Noonan (Limerick City, Fine Gael)

The Deputy should note that as Minister for Finance, I have had no direct dealings with Liberty Mutual in regard to this transaction, including the issue of the future of all existing job holders. However, I have been informed by the joint administrators that aside from the redundancies in Manchester, all 1,570 jobs in Quinn Insurance Limited have been protected for at least two years. When they gave me that commitment, they referred to "two years" because that was as far as they were prepared to make an estimate into the future. There was no suggestion that any of the jobs will be at risk after two years. I understand the jobs will be transferred to Liberty Mutual Direct Insurance Company Limited under the protection of employees rights on transfer of undertakings regulations. That will ensure the current terms and conditions are protected.

It is important to keep in mind that in assessing the bids for the business of Quinn Insurance Limited, the joint administrators were required to consider how best the interests of policy holders could be protected and how the company could be returned to a sound commercial footing. This was their primary responsibility, in line with the powers given to them under the Insurance (No. 2) Act 1983. While the retention and protection of employment was important, it was subject to the aforementioned responsibilities. In the circumstances, the proposed deal between Liberty Mutual and Anglo Irish Bank represents an excellent outcome from a jobs perspective because it provides a commitment to maintaining jobs for at least two years and achieves the primary objective of protecting policy holders. Liberty Mutual has not given an indication of what will happen to these jobs at the end of the two-year period, but I remain hopeful that they will be maintained. Quinn Insurance Limited has been purchased by a company with an impressive track record in the insurance industry. It is conscious of the importance of ensuring competition in the Irish insurance market and appreciates its role in providing employment and economic development in the Border region and further afield.

Additional information not given on the floor of the House

An agreement was reached between Anglo Irish Bank and the senior lenders to the Quinn Group whereby the €1.3 billion debt of the latter is being restructured. This will result in the removal of a long-running and significant uncertainty from these businesses, which are strong but were over-indebted. Their lending facilities were in breach of covenant for some time. As a result of the agreement, all or almost all manufacturing jobs will be retained. It is important to state clearly to the House that a viable future depends to a large degree on the willingness by everybody, particularly those engaged in recent negative events, to engage wholeheartedly with the new ownership arrangements and to begin to put their energies into growing the business and contributing to getting jobs back into the local economy on both sides of the Border. This is important. If this does not happen, over time there is likely to be a negative impact on the performance of the group and consequences for jobs. None of us in the House wants to see this.

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