Joe O'Reilly (Fine Gael)
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I thank the Cathaoirleach and his staff for selecting my matter for discussion on the Adjournment and I welcome the Minister of State. As the Minister of State and colleagues in the House will be aware, the EU globalisation adjustment fund was set up effectively as a precursor to the Lisbon campaign to gain popular support. However, the issue is not so much the background as the nature of the fund.

The assistance provided by the fund includes job search assistance, occupational guidance, retraining, lifelong learning and training allowances. I am sure the list may be interpreted flexibly. Applications for the fund must be authorised by a member state and be signed by an authorised representative, either a relevant Minister or European representative of that State. Based on all the information I have gathered from MEPs and from informal discussions, it seems that applications from member state governments which present a reasonable case will be accepted, and my understanding is that there is a considerable amount of funding available.

Tragically, there are now more than 430,000 people unemployed in this country, which represents an increase of more than 6,600 from last month. In April, the unemployment figure for the Border, midlands and west, BMW, region, the area I represent and on which I am focusing in this context, was 60,600, including 7,226 from my own county of Cavan. These figures demonstrate the size of the unemployment problem, which is exacerbated by globalisation. In a strictly theoretical sense, there must be a globalisation dimension to the unemployment problem, and that is certainly the case. Globalisation is a major threat to indigenous employment.

The current rate of unemployment is phenomenal and, without question, will rise, especially as a result of the job losses at Quinn Insurance. From attending meetings with the Minister of State I know he is only too painfully aware that 900 people have already sought voluntary redundancy from the company in the past month. These redundancies will come into effect in the next 15 months. Quinn is one of the largest employers in the Cavan area and the effect on the people of Cavan will be detrimental. Quinn workers would not readily obtain PEACE funding, so we must seek money from the globalisation fund. The labour activation fund has been established, which I welcome, but I am calling for this as an additional measure.

It goes without saying that our preferred solution at local level is to save the jobs by opening all the markets, but we have to deal with the tragic realities of job loss as well as consolidating and saving existing jobs. Our predominant strategy must be to save jobs, but this cannot always be achieved and we must deal with the situation as it is.

Dara Calleary (Mayo, Fianna Fail)
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First, I wish to outline some of the responses by Government agencies, of which the Senator will be aware. I acknowledge the work he put in during the weeks following the announcement.

In recent weeks the Minister for Enterprise, Trade and Innovation, Deputy Batt O'Keeffe, has been in close and regular contact with State agencies, Quinn Insurance employee representatives and local public representatives across the political parties. That process of intensive engagement meant he could activate a co-ordinated emergency Government response as soon as the redundancies were notified. He established an inter-agency team comprising Enterprise Ireland, FÁS, IDA Ireland, the relevant enterprise boards and the Department of Social Protection. The former chief executive of Enterprise Ireland, Mr. Dan Flinter, is chairing the inter-agency team in order that every support can be put in place in responding to the needs of all those affected. His appointment is a strong signal of the importance the Government attaches to a co-ordinated and effective response to the voluntary redundancies in Quinn Insurance.

The primary focus of the inter-agency response team will be to support the affected employees to explore their options regarding employment, setting up a business and education, as well as to outline the supports and training available to them. The first meeting of the team was held in Cavan on Friday, 30 April and three further meetings have taken place since. Dedicated information centres staffed by the agencies have been established on site in Cavan, Navan and Blanchardstown to support the affected workers. Staff briefing sessions have been held in Cavan, Navan and Blanchardstown to outline the supports available through Enterprise Ireland, FÁS and the relevant enterprise boards. A series of business start-up workshops will be run by Enterprise Ireland and the county enterprise boards in the three centres for those thinking of starting a business. On 9 June the Department of Social Protection and FÁS will be back on site at the three locations to process benefit applications and assess training needs.

Enterprise Ireland is in communication with Quinn Insurance regarding the most appropriate and practical measures to be taken by the agencies concerned, while also ensuring continuation of normal business at the locations affected. The agency will run briefings for the affected staff on the supports that can be provided. It will also hold one-to-one clinics with persons interested in starting a business.

The county and city enterprise boards have made themselves available to liaise with those considering self-employment or establishing their own micro-enterprises. The boards in Meath, Cavan and Fingal are working together to provide an appropriate co-ordinated response to the announcement of the job losses at Quinn Insurance.

IDA Ireland will participate in all group endeavours to minimise the impact of the recent announcement. The agency will establish the range of skills currently in the company and actively market these skills to all potential investors. Mr. Flinter will have a major role to play in this regard.

FÁS has made direct contact with the administrator and company management to discuss the services it can provide. However, the Senator will be aware that a key element in safeguarding the long-term viability of Quinn Insurance and protecting the remaining jobs is the reopening of its UK business. In this regard, the decision by the Financial Regulator to allow the remainder of the private motor insurance business to reopen from 30 April is welcomed.

All are agreed that these are difficult and uncertain times for employees at Quinn Insurance. I assure the Senator and the workers and communities affected that the inter-agency team established by the Minister will give every support to assist the employees who lose their jobs and create new employment opportunities for those affected.

As for the funding issues, the Government is considering the potential of all relevant EU funding programmes, including the globalisation fund, to assist workers in the BMW region and, in particular, those affected by the Quinn Insurance redundancies. The Minister has been in contact with his Northern Ireland counterpart, the Minister of Enterprise, Trade and Investment, Arlene Foster MLA, about drawing down European Union funding under the cross-Border INTERREG programme for training initiatives and start-up supports in the affected areas. Officials on both sides met on 4 May and are now working on a funding proposal that will be submitted to the INTERREG programme when the next call for proposals is made in September. As the Senator noted, the Tánaiste and Minister for Education and Skills has agreed that €1 million of the special fund for labour force activation measures will be ring-fenced to fund up-skilling activities for Quinn Insurance employees affected.

As for the issue of submitting an application to the European globalisation fund in respect of redundancies in the BMW area, Members should be aware that strict criteria apply to the making of applications for co-financing assistance under the fund. These include the requirement that at least 500 redundancies in a single enterprise have occurred within a four-month reference period. It is not yet clear whether the redundancies related to Quinn Insurance will meet this requirement. In addition, a substantial number of other requirements obtain when making an application. Therefore, no application for European globalisation fund moneys has yet been made. However, this is being kept under close review and I will revert to the Senator with further information.

Joe O'Reilly (Fine Gael)
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I thank the Minister of State for his detailed reply. It is clear from the subtext that the Government is looking positively at making an application and I appeal to the Minister of State to so do. I am also delighted with the cross-Border dimension. The Minister of State will be aware that this issue was discussed at today's meeting of the Joint Committee on Enterprise, Trade and Employment which was attended by MEPs. A consensus emerged which took on board the expertise of the MEPs in respect of dislocation in a number of small enterprises within a region. In this context, I note that 60,000 jobs have been lost throughout the entire BMW region and that up to 900 such losses will take place in Quinn Insurance. If one takes on board the points made by the business leaders from the Quinn catchment area whom I met yesterday in Buswell's Hotel, it appears that unless things change soon, the situation might become more catastrophic. God forbid that this would be the case. This is a serious issue, but the Minister of State's reply has left me with the impression that this will happen. However, I ask him to make it happen quickly.