John Moloney (Laois-Offaly, Fianna Fail)

I recognise the sincerity of the input from Senators Wilson and O'Reilly. I am speaking on behalf of the Minister for Enterprise, Trade and Innovation, Deputy Batt O'Keeffe. I can confirm that I have been visiting Cavan, in particular a little place called Ballinagh which is a great holiday resort, every year for the past 30 years. Over the years I have seen the huge progress in Cavan which is no doubt mainly due to the serious investment and job creation in the area. I spent the first three days of the new year there. I will not pretend I was there on serious business because I was not. The conversation there, however, concerned the devastating effect of the job losses in Quinn Insurance.

More importantly, there are further fears for the operation. I have heard what the Senators said often and in detail. The Minister, Deputy O'Keeffe, assures the House of his ongoing concern about the situation regarding Quinn Insurance Limited, in particular the long-term impact on the workforce, their families and the local community. The Senators will appreciate that for considerations of commercial confidentiality, it would not be appropriate for the Minister to comment on the participation of any party in the sale of Quinn Insurance. Responsibility for the sales process lies with the joint administrators appointed by the High Court. The Minister believes it would be inappropriate to speculate on what might happen to jobs in the company before a decision on its sale is made. I understand it is expected the joint administrators will decide on a preferred bidder shortly with a view to entering into detailed discussions with the bidder to seek to conclude an agreement on the sale of Quinn Insurance. In assessing the bids the joint administrators are required to consider how the interests of policy holders can be protected and the company can be returned to a sound commercial footing. The retention and protection of employment are important priorities, subject to the administrators' other responsibilities. The final decision of the joint administrators will be subject to the approval of the High Court.

It is important to clarify that neither the Government nor the Minister has any input into or influence over the administration process, including any decision on the sale of the company. The decision to appoint joint 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 policy holders. The aim of the appointment of 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 a sound commercial and financial footing.

Last June the High Court granted the joint administrators of Quinn Insurance permission to appoint merchant bankers Macquarie Capital Europe to advise on any prospective sale of the company. Macquarie Capital Europe, acting on behalf of the joint administrators, put a process in place to sell Quinn Insurance. On 27 August last Macquarie Capital Europe issued an information memorandum on the sale of Quinn Insurance to interested parties. That process is ongoing. The first stage of the process involved the submission of a non-binding indicative proposal by Friday, 17 September. Following evaluation by the joint administrators, a limited number of prospective purchasers were selected to participate in the second phase of the sales process. They were allowed to conduct further due diligence before completing a final bid. Final bids were submitted on 10 December. Macquarie Capital Europe and the administrators are considering the offers made. As I said, they are expected to decide on a preferred bidder shortly.

Senators will understand the Minister is constrained in what he can disclose to the House in respect of this competitive sales process. Responsibility for the sales process lies with the joint administrators appointed by the High Court. Last year, in response to developments in Quinn Insurance and in the light of concerns about the impact on employees' jobs, the Minister established an inter-agency team comprising representatives of Enterprise Ireland, FÁS, IDA Ireland, the relevant county enterprise boards and the Department of Social Protection. The team meets regularly under the chairmanship of Mr. Dan Flinter. Its first meeting was held in Cavan on 30 April 2010. Twelve meetings of the team have taken place to date. Active ongoing dialogue with the employee representative group has been a feature of the process. The 13th meeting of the inter-agency response team will take place in Cavan on 7 February.

The primary focus of the inter-agency team is on supporting the affected employees; exploring their employment options, including self-employment through setting up a new business; providing for skills development; and outlining the supports available to them. Dedicated information centres staffed by the agencies were established on site in Cavan, Navan and Blanchardstown to support the affected workers. Briefings and information sessions for the employees concerned were arranged at all three sites by Enterprise Ireland, FÁS, the county enterprise boards, the Department of Social Protection and other agencies, education providers and financial institutions as required. The Minister considers that the inter-agency team has been an effective solution to co-ordinate the activities of the relevant Departments, State development agencies and county enterprise boards to support employment opportunities for the employees concerned.