Paschal Donohoe (Fine Gael)

I welcome the Minister of State. I will make two points and ask a number of questions. If the Minister of State is unable to provide answers, I ask him to revert to me later. The message the Seanad wants to send out in the matter before us is that the employment provided by the Quinn Group and its contribution to the national economy must be maintained. In so far as it is legally possible, I ask the Government to recognise this and pass on the Seanad's view on it.

Tuesday was a dark day for everybody but it was made darker by the announcement relating to the Quinn Group. Everybody wants the issues arising between the group and the Financial Regulator to be resolved, either through the courts or discussion between the two interested parties, in a manner that results in the maintenance of a healthy and competitive insurance market and the jobs in the group that are of major importance to the country as well as the counties represented by many Senators.

While I recognise and support the legal independence of the Financial Regulator, the role it performs and the reason for its regulatory function, it is within the rights of Senators to ask the Minister of State to relay to the Regulator a number of questions concerning recent developments, particularly given the importance of the Quinn Group to the economy and insurance industry.

On an issue to which Senator Wilson briefly referred, the public statements of the Quinn Group appear to indicate a high level of profitability in the group, even in this difficult year. It has been reported today, however, that even if the Quinn Group is able to assure the Financial Regulator that the sum of €450 million in question is available - I am sure it will be able to do so - the Regulator will seek to pursue action against the group. Given that the business appears to be healthy, many of us want to know the reason the Financial Regulator proposes this course of action. What information is available to the Regulator that leads him to believe this option is appropriate?

It has also been reported today that the Financial Regulator has indicated that, at the next court hearing on 12 April, it will advocate that the Quinn Group be maintained in indefinite administration. It is important for Members, insurance policy holders and employees of the group that further information is supplied on the reason the Regulator believes indefinite administration is an appropriate course of action.

It appears from what I have read that the Quinn Group and Financial Regulator find themselves in the current position as a result of the cumulative effect of a series of actions taken since 2005. In recent years, the House has frequently discussed regulation in the banking industry. Was the Financial Regulator aware of the actions taken in 2005 that brought us to this point? How were the responsibilities of the board of the Quinn Group discharged? It is not in anyone's interests to find ourselves at this point after five years.

The Quinn Group has indicated it is considering its options in light of recent developments. I hope the group will consider refreshing or amending the business plan, which was presented to the Financial Regulator and rejected in March, in such a way as to ensure it meets the approval of the Regulator and maintains the group's presence in various markets as well as the jobs it currently provides. Members, insurance policy holders and workers want to find a way to deliver a successful resolution to the issue.