Written answers

Wednesday, 28 April 2010

Photo of Liz McManusLiz McManus (Wicklow, Labour)
Link to this: Individually | In context

Question 87: To ask the Minister for Finance the position regarding the status of a company (details supplied); the number of entities that have expressed an interest in acquiring the insurance part of the company; the steps that are being taken to ensure the greatest possible protection of the employees; and if he will make a statement on the matter. [17203/10]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

As the Deputy will be aware, on 15 April, the High Court appointed full time administrators to Quinn Insurance Limited. This follows Quinn Insurance Limited's (QIL) decision to consent to the appointment made by the High Court on application made by the Financial Regulator. It is the Financial Regulators and QILs opinion that this step is in the best interests of policyholders. It means that the company is able to pay claims and renew policies in the normal way here in Ireland and continues to settle claims in the UK. It also puts the business on a sound commercial and financial footing and this best serves the proper and orderly regulation of QIL and the wider insurance market.

I am conscious of the position of employees of Quinn Insurance as a result of the appointment of the joint Administrators to the company. I am aware that a key element in safeguarding employment in Quinn Insurance is the re-opening of its UK business. In this regard, I welcome the decision by the Financial Regulator to allow the company to write motor insurance cover, for provisional driver licence holders in the United Kingdom including Northern Ireland with effect from 22 April. This is an important first step in ensuring that the value of the business is maintained as it enhances the prospect of the Administrators being able to sell the firm as a going concern.

The submission of detailed business plans and proposals in relation to re-opening further lines of business in the UK is a matter for the Administrators. The Financial Regulator has informed me that it has been engaged with the Administrators in recent weeks and is giving all proposals full consideration. Before making any decision on this matter the Financial Regulator will have to be satisfied that any proposals stand up to scrutiny and are supported by robust and detailed information, actuarial analysis and pricing.

The Government remains concerned about the position on employment in QIL 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 the wider interests of the taxpayer. The administrators have said that they will continue to engage constructively with staff and management at the company as they endeavour to secure its future. In that context, I understand they will be meeting with staff representatives on Friday, 30 April to advise them of their decision on what measures are necessary in relation to employment levels as part of the recovery plan for the company.

I cannot comment directly on the issue of the number of companies that have expressed an interest in acquiring Quinn Insurance as this is a matter for the Administrators rather than my Department. I am aware however, that the Administrators have indicated that a significant number of companies have expressed an initial interest in the company. A complete analysis of the financial position of the company is still being carried out by the Administrators and this must be completed before there is further progress here.

Finally, in relation to the broader Quinn Group, I have been informed by my colleague Mr Batt O'Keeffe, the Minister for Enterprise, Trade and Innovation that the Chairman and Chief Executive of Enterprise Ireland met with the senior management of the Group earlier this month. He has indicated that Enterprise Ireland stands ready to provide all possible support to the company with a view to maintaining the maximum number of jobs when the company's position is clarified in the period ahead.

Comments

No comments

Log in or join to post a public comment.