Conor Lenihan (Dublin South West, Fianna Fail)

I thank the Senator for raising this matter on the Adjournment. The Quinn group is a major employer in Ireland and Northern Ireland and we are all very anxious to see a satisfactory outcome to the current situation. The Government is obviously concerned about the employment situation and about the Quinn group generally. That is why the parties involved must continue to work to find a solution that addresses the issues of putting the company back on a sound commercial and financial footing. This is the best way of protecting jobs and it is in the wider interests of the taxpayer.

Quinn Insurance was established in 1996 and is the largest Irish-owned general insurer. The Quinn group employs more than 6,000 people directly in its worldwide operations across a number of countries and encompasses a wide range of activities, including financial services, glass, building products, radiators, plastics, property and hospitality. Approximately 1,800 people are employed in Quinn Insurance in Ireland, with a further 650 employed in the UK, including Northern Ireland.

The Quinn group is a valuable part of the Irish enterprise base. It contributes to our economy through direct and indirect employment, through its spend on Irish materials and services, and through capital investment and tax revenues generated by employment and corporate taxes.

The appointment of the administrators, pursuant to the Insurance (No 2) Act 1983, to take over the management of Quinn Insurance was taken in the best interests of the firm's policyholders. The appointment will allow the firm to remain open for business and to continue to be run as a going concern with a view to placing it on an ongoing sound commercial and financial footing. I have been advised by the Department of Finance that one of the major concerns of the administrators has been to try to ensure the value of the business is maintained to make it as attractive as possible to potential buyers. The key factor here is the reopening of profitable parts of the UK business.

The first step has now been taken, as the Financial Regulator has modified the direction issued to Quinn Insurance to permit the company to underwrite motor insurance cover for provisional driving licence holders in the United Kingdom, including Northern Ireland. This took effect from 21 April. The Financial Regulator took this decision after careful consideration and analysis of information provided by the administrators about important improvements in the company's underwriting model and a significant strengthening of its pricing structure. The Financial Regulator consulted closely with the UK Financial Services Authority prior to making its decision. It is hoped that further lines of business can be re-opened soon.

Enterprise Ireland has supported the Quinn group over the past four years by providing grant support towards the creation of new jobs in Ireland and promoting the company's international growth. Enterprise Ireland continues to support the Quinn group through this difficult period. The chairman and chief executive met the senior management of the group earlier this month and there has been ongoing contact. Enterprise Ireland will provide all possible support to the company with a view to maintaining the maximum number of jobs.

There is no doubt that these are difficult times for everyone involved with the Quinn group. I am conscious of the effect the uncertainty has on the workers involved and their families as well as on the communities in which they live. I assure everyone that the State agencies will give every support they can to Quinn employees to make this business viable.