Dáil debates

Wednesday, 12 May 2010

3:00 pm

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 47: To ask the Minister for Enterprise; Trade and Innovation if he has met with his counterpart in the Northern Ireland Assembly to discuss the potential loss of employment in the Border region; if there will be cross-border initiatives to relieve the pressures that mass unemployment in the region would cause; his views on whether the Border area can afford not to have joined up Governmental action in terms of dealing with unemployment in the region; and if he will make a statement on the matter. [19063/10]

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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Given my recent change of portfolio, I have not yet had the opportunity to arrange a face-to-face meeting with my Northern Ireland counterpart, Arlene Foster, MLA. However, I have spoken to her by telephone three times over the past several weeks on Quinn Insurance and the impact of redundancies on the company and the local economy. We discussed the possibility of preparing a joint proposal to apply for European Union funding under the cross-Border INTERREG programme for training initiatives and start-up business supports. Work on this joint proposal is now being progressed at official level. We also discussed how our officials could work together in other areas.

The inter-agency response team, which I established under the chairmanship of Mr. Dan Flinter, will work with Mr. Leslie Ross, who has been tasked with chairing a similar response team established by the Northern Ireland authorities. I also spoke with Sir Reg Empey, Minister for Employment and Learning, about the specific issues arising from the Quinn Insurance announcement. I will keep in regular contact with my counterparts on this particular issue.

On the broader issue of co-operation, I will meet the Minister, Ms Foster, MLA, at the next North South Ministerial Council meeting in June. The Deputy will be aware that under the British-Irish Agreements there is already a wide range of cross-Border activities aimed at economic development. These arrangements are augmented by co-operation on a less formal basis, which has been taking place between Departments and Agencies North and South for many years. These arrangements cover matters such as enterprise and business development, labour market and skills, trade, tourism and investment promotion and science, and technology and innovation.

I refer to examples of these activities. InterTrade Ireland, co-funded by my Department and its counterpart in Northern Ireland, was specifically established to support cross-Border activities across a range of activities including innovation, enterprise development, networking and policy development. Enterprise Ireland and Invest Northern Ireland collaborate on an all-island innovation vouchers scheme and on trade missions abroad. IDA and Invest Northern Ireland co-operate in Donegal and Derry in the North West Now collaboration. The IBEC-CBI Joint Business Council carries out an extensive North-South work programme. Ongoing co-operation between Governments on both sides of the Border, together with the work of the agencies on the ground will continue to support economic development and investment in the Border region.

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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I would have preferred if Question No. 90 had been taken with Question No. 47. I am disappointed with the Minster's reply. The fact that he indicated he has had only three telephonic link-ups with his counterpart in the Assembly, Ms Arlene Foster, MLA, does not demonstrate the necessary focus on the very serious situation that has unfolded in the Border counties, specifically, Cavan and Fermanagh. The announcement last Friday week signalled some 432 jobs would be lost in Cavan and Fermanagh, in excess of 50% of the entire signalled loss of 846 jobs throughout the island of Ireland in Quinn Insurance Limited.

I am not at all impressed by the Minister's reply which is somewhat dilatory. The reality is if such an announcement were made in respect of any other part of the country there would be a far more focused and definite effort on the part of Government to try to save the jobs concerned. While I welcome and encourage cross-Border co-operation in the address of the terrible vista that has now presented for these workers, their families and the wider and interdependent community, real and serious questions must be answered.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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A brief question, please.

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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We cannot divorce ourselves from the lead-in situation to the announcement of 900 redundancies in Quinn Insurance Limited last Friday week. Real and substantial questions must be put in respect of the decisions taken by the Financial Regulator. While I acknowledge the independence of his office, the Financial Regulator must be accountable in some way and there must be some basis by which his decisions should be justified either to the Department of Finance or some other agency of the State.

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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I absolutely reject the Deputy's suggestion that I was not proactive in this regard. When it first came to my notice I made it my business to meet Mr. Quinn. Subsequent to understanding the difficulties that were to arise, I contacted Mr. Frank Ryan, chief executive, and Hugh Cooney, chairman, Enterprise Ireland. I asked them to make arrangements to meet immediately with Mr. Quinn in respect of the matter. From the very first day, Enterprise Ireland interacted with the Quinn Group. I made it my business to contact Arlene Foster and Reg Empey. I made it my business to instruct officials in the Department to check out the feasibility of an application under the North South INTERREG programme to establish whether we would qualify. I made it my business to ensure that when the redundancies were announced I remained at home rather than go on a trade mission to Australia and to be in Cavan to meet the administrators to hear what they had to say and to establish how we could facilitate what was taking place within the group.

At the moment the announcements were made all the agencies were in place and a one-stop shop was established in each of the locations. An opportunity for workers to look for advice and to seek support was provided. I secured the agreement of the Northern Ireland Minister for Education and Training to a €1 million activation fund for the areas affected by the redundancies. As the Deputy is well aware, discussions are still ongoing. Recently, the Taoiseach met not alone with the Cavan Chamber of Commerce, but with the elected representatives of the workers.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I wish to call Deputy Crawford but I call Deputy Ó Caoláin for a supplementary question first.

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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The fact of the matter is that when this announcement was made the Government failed to properly address what it could do in real and specific terms to save these jobs. It is all very well to refer to education and re-training afterwards. For heaven's sake, do not utter "taskforce" across this Chamber to me because I will surely take ill. The fact is the Government has yet to demonstrate properly why it was not feasible or explain why it could not have introduced a Government timeframed guarantee to underscore the solvency deficit in respect of Quinn Insurance Limited to allow the company to continue to trade throughout the Six Counties and in Britain, where it was relatively embryonic, where over a short period it could have establish its viability and profitability and where it had already demonstrated its competitiveness among the other players in those markets. That was what the Government could have done to save the jobs rather than react after the event.

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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Although I am surprised at the Deputy, I should not be and there is political expediency in his statement.

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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No, there is not.

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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The Deputy attended a meeting yesterday evening-----

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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This is what I put to the Minister when I met him personally-----

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Please allow the Minster to reply.

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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-----and I have repeated the proposal to all his ministerial colleagues. The Minister has never explained why he could not take this course of action.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I call on the Minister to reply through the Chair and the Deputy to allow the Minister to reply.

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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The Deputy attended a meeting yesterday evening. He was in the presence of the Taoiseach during which the issues of aid and the independence of the regulator were raised. It is not expedient for the Government to appoint an independent regulator to ensure companies and groups are subject to financial regulation and then interfere in the process. Is that what the Deputy is suggesting?

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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We are not suggesting interference.

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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The Deputy has had his say. He should let me finish.

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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At the meeting last night-----

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Members should not shout one another down.

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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The Government took a different view in the case of the banks.

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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The Deputy was present when it was made quite clear by the Taoiseach last night that the Government cannot become involved in State aid to a private company. The Deputy is also aware that the Government could not become involved in State aid to Waterford Glass when that issue surfaced. Where required, the Government has given a guarantee to the regulator in the UK-----

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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We are doubly over time. I call Deputy Crawford for a supplementary question.

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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-----when it came to policies within our remit.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I would be obliged if the Minster would facilitate the question.

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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The Deputy is well aware that we have done everything possible to extend car insurance and now we are making every effort-----

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I ask the Minister to allow Deputy Crawford to put a supplementary question and he may come back again afterwards.

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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What we need is the restoration of access to all relevant areas.

Photo of Seymour CrawfordSeymour Crawford (Cavan-Monaghan, Fine Gael)
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I tabled Question No. 87, which was similar, and I am disappointed it was not taken. This would have allowed more time to discuss the issue. It is an extraordinary and very serious situation because everyone maintains the Quinn company is a good and profitable company but it appears to be falling on its feet every hour because of its inability to sell commercial insurance in Northern Ireland and the UK. I hope some progress can be made on the matter before the weekend is out.

I congratulate the Minister on his appointment and I realise he is new to the job. Were he to examine the situation in the Border counties of Cavan, Monaghan, Leitrim and Donegal, he would realise no investment has been made in the whole area, especially since the Troubles. I ask the Minister, on the occasion of his first Question Time, to ensure that a genuine effort is made, taking into account the Quinn Insurance situation as it is today, to ensure the area is prioritised. I am not satisfied that personnel in IDA and Enterprise Ireland are committed to the area. If it was not for Seán Quinn there would be nothing there.

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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I welcome Deputy Crawford's positive approach. It is important to acknowledge that this is an outstanding company and that the people losing their jobs are of the highest calibre. We must do everything possible to assist them. We should also keep in mind that 1,900 people are still employed by the company and that the administrators are confident these jobs can be sustained and hopefully expanded into the future. We must generate confidence in the company in order to ensure its ongoing viability.

I have put staff from all the industrial development agencies into the Border region. The IDA has been made acutely aware of the need to provide opportunities for those who will lose their jobs at Quinn Insurance. As staff take voluntary redundancy, the administrators will make available to the IDA and to Enterprise Ireland details of their skills and experience. The development agencies will tailor that to the jobs that can be created and the businesses that should be supported.