Kieran O'Donnell (Limerick East, Fine Gael)
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Question 62: To ask the Minister for Enterprise; Trade and Innovation if he has had discussions on the future of Quinn Insurance [2590/11]

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 64: To ask the Minister for Enterprise; Trade and Innovation the meetings he has had with the Department of Finance concerning the restructuring of the Quinn group including, specifically, the sale or re-organisation of Quinn Insurance; the efforts in conjunction with the Department of Finance he has made to secure the best interests of workers and to maintain employment; and if he will make a statement on the matter. [2639/11]

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

Kieran O'Donnell (Limerick East, Fine Gael)
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The Minister stated a decision will be made shortly. Could he give us a clearer indication as to when he expects a decision to be made by the administrators on the bids? The Minister, in his reply, did not refer to the fact that there are 1,400 people working in Quinn Insurance and up to 6,000 people working in the Quinn Group in a region where it is the largest employer. In terms of employment protection and competition in the insurance market, it is critical that Quinn Insurance continues to be viable and provide jobs. Has any contact been made by the administrators with the Minister's Department on the measures which it could provide regarding the deal, in particular for job protection?

Batt O'Keeffe (Cork North West, Fianna Fail)
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On the reopening of the business, the administrators were concerned that they would ensure the value of the business was maintained in order that it can be attractive for potential purchasers. The key factor has been that they reopened the profitable parts of the UK business. The Financial Regulator allowed Quinn Insurance to reopen its private motor insurance business by the end of April. Before taking its decision the Regulator carefully considered the information provided by the administrators on the important improvements in the company's underwriting model and there was significant strengthening of its pricing structure. It also consulted closely with the regulator in the UK.

On the issue of reopening commercial lines of business in the UK, the Financial Regulator decided in September that such a move would not be appropriate as Quinn Insurance would require additional capital which it currently does not have. The Regulator understands from the administrators that the non-resumption of UK commercial business should not have a significant impact on the sales process.

The administrators were put in place by the courts and it would be invidious of me to become involved with them, given that they have to report back to the courts on the policy holders and the business being put on a sound footing. It is an ongoing concern. The process has to consider jobs. We are all well aware of how important it is to try to ensure that any sale retains the maximum number of jobs.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Every evaluation must ensure that the best interests of policy holders are met, that competition within the industry is secured, that the existing jobs in Cavan, Enniskillen, Blanchardstown, Navan and elsewhere are protected and the best prospect for the return of €2.8 billion owed by Seán Quinn to Anglo Irish Bank, which is now in State ownership, and the taxpayer. Would the Minister not believe that the extended efforts between Anglo Irish Bank and Quinn Insurance in putting together proposals for the consideration of the administrators would have offered the best prospect of realising each of those goals?

Does the Minister have any indication as to why the long and protracted preparatory period did not lead to the final presentation of the so-called Quinn and Anglo Irish Bank proposal to the administrators within the timeframe set? How is it that Anglo Irish Bank, over a very short period of time, appeared to be saddled to another proposition with external interests which can guarantee none of the aforementioned goals?

What has the Minister's Department been doing, including providing any supports that are necessary, to give life to the Quinn and Anglo Irish Bank proposals? What has the it been doing in conjunction with the Department of Finance to assist the achievement of each of those objectives?

Batt O'Keeffe (Cork North West, Fianna Fail)
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I met the group several times. I met representatives of the wider Quinn Group in July and November last year. At the first meeting, the delegation outlined to me the details of a proposal that would involve the participation of Anglo Irish Bank and Quinn Group. The Quinn Group hoped it might be a viable alternative to the sale of the business by the administrators. In responding to the proposal I had to reiterate to them the independence of the Financial Regulator in carrying out its role. I indicated to it that the administrators were appointed by the courts and would be subject to reporting back to them, but they would always have to take into account what the Deputy outlined, as well as maintaining the maximum number of jobs.

I understand the result of the deliberations and sales process will be announced very shortly. As the administrators were appointed by the courts I or any member of Government cannot be involved in the process. However, we have been very concerned about the matter. The Deputy will be aware that I established an interagency group under the chairmanship of Mr. Dan Flinter who is the former CEO of Enterprise Ireland. He has been working with representatives of the company. The group has met on 13 occasions regarding this matter.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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I thank the Minister for his interest in this matter. The Quinn Group has provided up to 6,000 jobs on the island of Ireland and is extremely important. My interest is this matter is not about any individual, rather it is about the need to sustain jobs. What role, if any, did the Minister play in ensuring that the group he met representing the Quinn Group and Anglo Irish bank had ongoing discussions until December? The Quinn Group suddenly found itself left out. Can the Minister find out why that happened? If the Quinn Group proposal was not solid enough to represent the combined Anglo Irish Bank and Quinn Group interest, can it be given an explanation as to what was wrong and can it be offered the right to rectify it?

I fully appreciate the legal issue with the administrators. Our problem concerns where the proposal fell down before it reached the administrators. Is there any way the proposal can be reconsidered? It is the only proposal which can save the jobs and save the taxpayer €2.8 billion.

Batt O'Keeffe (Cork North West, Fianna Fail)
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I appreciate from where the Deputy is coming. The Government has been very supportive of the Quinn Group. I met representatives of the group a number of times as did the Minister for Finance and the Taoiseach. There is a limit to what we can do. The regulator is absolutely independent and must be satisfied with regard to the corporate governance relating to all of the participants. I am not aware of the exact proposals lying with the joint administrators and the Macquarie bank group. All I know is that they will have to take into account the protection of the maximum number of jobs, along with the interest of the policy holders. They must ensure it is a viable business with a future.

Brendan Howlin (Wexford, Labour)
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If Deputies will bear with me, I will allow three further Deputies put their questions.

Willie Penrose (Longford-Westmeath, Labour)
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We all accept the Minister's ability to interfere directly in the process, although carefully and severely circumscribed by the fact that the administrative process is under the purview of the courts. We accept that, but we are also aware of the importance of the Quinn Group jobs in Dublin, Meath, Monaghan, Cavan, Fermanagh, Longford, Westmeath, Leitrim and Roscommon. These are areas where jobs are extremely scarce on the ground and we are all aware of the importance of this industry in that regard. Why, therefore, did the Quinn Insurance Limited or Anglo Irish Bank bid that was being put together disappear from the landscape and why was it not considered as coming from a viable bidder? Did the Minister have any opportunity to become involved or was the Department of Finance, which is important in the context of Anglo Irish Bank, ever become directly involved? Was Mr. Elderfield ever brought into the process and asked his opinion? He is entitled to give an opinion when sought. Anglo Irish Bank is now owned by the State and would, in that context, have a direct input, particularly when, if the jobs are lost, we will end up paying for them at the end of the process.

Where does the NTMA fit into the situation? Has it had any input into the overall process? Were there any discussions with the Department of Finance, the Department of Enterprise, Trade and Innovation, Mr. Elderfield, the NTMA and all of the entities that are so important in this context?

Batt O'Keeffe (Cork North West, Fianna Fail)
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Deputy Rory O'Hanlon will confirm that we met with the Minister for Finance and that Mr. Elderfield was present at the meeting. It is not for me to reveal in public the sentiments expressed by Mr. Elderfield at that meeting. The Deputy must recognise that the regulator has an independent role, and he demands that independence. He gave an opinion on that occasion with regard to the Quinn Group and what could be done for it. I am satisfied that on the basis of the efforts of Deputy O'Hanlon and the Minister for Agriculture, Fisheries and Food, Deputy Brendan Smith, we have met on a regular basis with all of the entities involved. We all want to see a successful conclusion to this and want to see the retention of the maximum number of jobs. We have emphasised this to everyone we have met, including Mr. Elderfield and the joint administrators.

Arthur Morgan (Louth, Sinn Fein)
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I accept entirely the restrictions on the Minister with regard to the regulator and the administrators. However, does the Minister accept this is a job retention situation and will he confirm whether he has had talks with people in Anglo Irish Bank? Clearly, he has unrestricted access to those people. If the Minister accepts this is a job retention issue, it should surely be part of Government policy to consider the joint proposal made by Quinn Insurance Limited and Anglo Irish Bank to see what can be done. Has the Minister done that? Does he accept the difficulty in that there are virtually no other job opportunities in the region, particularly the Border area. Given the importance of the jobs, they must be retained if at all possible.

Rory O'Hanlon (Cavan-Monaghan, Fianna Fail)
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I confirm the Minister's statement that there were a number of meetings and I thank him and his colleagues for the number of times they met and facilitated representatives of the Quinn group. Owing to the fact that there are 5,000 jobs involved and that the taxpayer is owed money, it is important we do everything we can to protect these jobs. It is also important that the Quinn proposal is examined. The Quinn group and in particular its representatives, including people like Dave Mackey a former public servant, should be informed exactly why their proposal has not been accepted and given the opportunity to amend it if possible. Does the Minister agree that should be done? While I appreciate the Minister has no direct influence on what happens, will he use his good offices to try and ensure that these people are informed what exactly is the problem with their proposal and given the opportunity to amend it?

Batt O'Keeffe (Cork North West, Fianna Fail)
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Yes, I did meet with Anglo Irish Bank people and I am aware that there was interaction between the Department of Finance and Anglo Irish Bank on this matter. There was also interaction between my Department and the Department of Finance with regard to the proposed investment. The Government, the Minister and the Taoiseach can intervene with the joint administrators with regard to the exercise of their duty and we have clearly indicated the importance to the region of the retention of jobs.

Also, the inter agency group I have set up, which has a North-South connection, proposes to make an application to INTERREG. This application will be lodged before the closing date at the end of February and we hope it will be a successful cross-Border initiative. Progress is being made with regard to that aspect of the joint agencies.