Diarmuid Wilson (Fianna Fail)

I welcome the Minister of State and thank him for coming to the House at such short notice to address this very important issue for the county from which I come and the entire economy. The appointment by the High Court of joint administrators to Quinn Insurance Limited came as a great shock to me and the people of County Cavan. I know Sean Quinn personally and regard him as a practical patriot whose initiative, hard work, risk taking and investment has created a working community of 7,000 people worldwide. Some 5,500 people are employed in this country and thousands of them are employed in my county of Cavan and in the surrounding counties. Quinn Insurance has centres in Enniskillen, Navan, Blanchardstown and Cork and its headquarters are in Cavan town.

The issues at stake are guarantees given by subsidiaries of Quinn Insurance Limited as securities for borrowings off the wider Quinn group. According to the Financial Regulator, this has only very recently come to light. My understanding of the facts is that the existence of the guarantees has been in the public domain since 2005 as they were filed in the company accounts. They are legal and are used widely. Quinn Insurance Limited brought the guarantees to the attention of the Financial Regulator on Wednesday, 24 March 2010, a little more than a week ago, in the context of a re-financing scheme. Quinn Insurance Limited was prepared to remove or retain them.

The Financial Regulator moved, without notice, to take High Court proceedings on 30 March 2010 to appoint provisional administrators to Quinn Insurance Limited. Given what has happened to this country in the past two years as a result of poor practice and poor regulation of the banks, I not only see the necessity for robust regulation and a strong Financial Regulator but welcome it. However, I take issue with the unfairness and injustice of a regulator, an agent of the State, moving without notice against a company which has contributed significantly to my county and the country. This action has devastating consequences for that most critical but intangible of assets, confidence. A company must enjoy confidence. In one hour, the regulator shook to the core the national and international confidence that had taken 37 years to build in a company which, even in these incredibly tough times, is on track to report quarterly profits of €50 million. Regardless of any action an administrator takes, the national and international damage to the company and its consequences for thousands of employees will not be rebuilt in one hour.

Did a company that has made such a significant contribution not at least deserve notice or fair play instead of finding itself the victim of over-compensation for the failure of the Office of the Financial Regulator to take action previously? The Regulator did not give the necessary time to work through its concerns and instead took action that damages the interests of all stakeholders, including the State. The Quinn Group has never been more profitable. The action taken by the Financial Regulator has major implications for Quinn Insurance Limited and the wider Quinn Group. Every day that passes is a disaster for the company and, by association, the overall group.

The action of the Financial Regulator has caused massive reputational damage, including overseas and especially in the United Kingdom. Sean Quinn, his family, co-directors and employees are seriously hurt by the innuendo that something untoward was taking place which is clearly not the case. The action and associated media circus have resulted in aspersions being cast on Mr. Quinn, a decent and honourable man, and his group of companies. This is grossly unfair to probably the most modest and successful entrepreneur Ireland has ever produced.

On local radio yesterday and many occasions in the past, the Minister for Agriculture, Fisheries and Food, Deputy Brendan Smith, noted the key importance of the Quinn Group, not only to County Cavan but to the entire economy. My party colleagues on Cavan County Council, councillors John Paul Feeley and Sean Smith, did likewise.

Quinn Insurance Limited did for the insurance industry what Ryanair did for air travel in Ireland. It created real competition in the sector and is now the State's second largest insurer. The company did much the same for the health insurance sector when BUPA decided to pull out of Ireland.

The Quinn Group continues to provide employment opportunities and economic development in some of the most marginalised areas of the country. Any damage caused to the group will have calamitous repercussions for County Cavan and the country. I ask the Minister for Finance to ensure the administrators do not do anything more to damage Quinn Insurance Limited and the entire Quinn Group.