Paschal Mooney (Fianna Fail)

I join colleagues on both sides of the House in welcoming the Minister of State at such short notice. I share Members' concerns about the unfolding developments in the Quinn insurance company. Can the Minster of State be more specific about the Department of Finance review? He said it was part of the programme for Government which was agreed in recent months. In light of recent developments, however, perhaps he could now put a more specific date on the review. There is an urgent need to have this review completed and placed in the public domain sooner rather than later.

In the same context, perhaps the Minister of State could elaborate on why there seems to be a Europe-wide reluctance to insure with cross-border companies. In other words, people tend to stick within their national borders when purchasing insurance cover. I would have thought that, considering the proximity of the UK and its huge market, it might have been incumbent on UK companies to be encouraged to come into this country. I temper my enthusiasm for non-Irish companies, however, with the reality that the bank crisis we are now trying to deal with at Government level started with the introduction of British-based banks. They came in here supposedly to open up competition in the mortgage market, but we have all seen what happened as a result. Many of them have now disappeared off the scene.

Both emotionally and practically, I share the concerns that have been expressed about jobs. Considering that we are now entering into the most important weekend in the Christian tradition, I have no doubt that silent prayers for the Quinn group will be offered throughout the country in the coming days. People will be looking at their mortgage commitments and education costs as well as their jobs. I do not wish to be scaremongering, but the history of administration is not conducive to expanding workforces. It tends to reduce them rather than expand them, but I hope that once the administrators undertake their work, that will not be the case. Those are the sentiments that have been echoed on all sides of the House and ultimately this is about protecting jobs.

The international reaction to the Financial Regulator's decision has raised some concerns. For example, I understand there are 90 employees of the Quinn group in the UK branch in Salford. They will obviously be concerned about their future. Today's Daily Mail reports that the UK business, which we have focused on, specialises in motor and professional indemnity insurance and is thought to have close to 400,000 customers. According to that newspaper, Quinn Direct specialised in low-cost policies for younger drivers who often signed up through price comparison sites. This is a fragile area to be involved in, especially where young drivers are concerned. Even though profit margins have traditionally been high in the small Irish market, I suggest they might lead to some concern in the UK considering the base from which they are operating. This may emerge as the administrators' work proceeds.

Another international commentary came from Lockton Risk Solutions, whose executive chairman, Neil Nimmo, warned that thousands of UK law firms could be impacted if the Law Society were to delist Quinn Insurance as an approved insurer after the company has fallen into the hands of administrators. I presume Mr. Nimmo was referring to the UK's Law Society, but perhaps the Minister of State can clarify that. If the UK business is a relatively smaller part of the wider Quinn Insurance in Ireland, then it gives the scale of what we are talking about. Mr. Nimmo is quoted as saying that almost 2,200 law firms could be left stranded by this disaster. It is an indication of the international concern being expressed. I do not want to add fuel to the fire, however. The best scenario is administration, whereas the worst scenario is liquidation or a shutdown. I appreciate that the Quinn group has issued a robust and aggressive response to the administrators' introduction, and is opposed to it.

Lockton Risk Solutions also stated that even if Quinn remains an approved insurer, questions will be asked about its ability to pay claims in future. The number of firms in the pool has risen from 150 in 2008, and with around 500 anticipated for 2010 it is likely to account for 10% to 15% of premium costs paid by the legal profession. I understand that Barclay's Bank refused to allow the Quinn Insurance group to set aside the €448 million in guarantees. If the administrator is confirmed on 12 April, it is to be hoped these questions about the future viability of the Quinn group will be answered. I am grateful to the Cathaoirleach for allowing me some extra latitude.