TAOISEACH Brian Cowen has emphasised the urgency of ongoing discussions to take Quinn Insurance out of administration and satisfy the Financial Regulator’s solvency requirements.
Mr Cowen said the parties involved will need to find a solution before Monday when the matter is due to come before the High Court again.
Anglo Irish Bank, which is owed approximately €2.8 billion by the Quinn Group, has been involved in intensive discussions with the group. The State-owned bank has offered to inject substantial capital into the troubled company in return for a major shareholding. Speaking in Drogheda yesterday, Mr Cowen said no decision had yet been reached in relation to the proposed injection of funds by Anglo.
“This is a court process where you have provisional administrators appointed. I have been saying this week that there was a need for everybody to sit down and see if a solution could be found that would meet the requirements of all the people involved,” he said, adding that speculation was not helpful.
Asked his opinion about concerns raised by the company’s employees’ about their jobs, Mr Cowen said: “As Taoiseach and as a Government, we are very concerned about the employment of such a significant group not only in the region but throughout the country.
“There are regulatory issues to be addressed as we know. There are discussions ongoing. Between now and Monday, we need to see if it’s possible to find a solution that will meet everybody’s requirements. The whole purpose of the discussions is to find a solution and to provide greater certainty for people.”
Labour Party deputy leader Joan Burton yesterday said there was a need for full disclosure of all the issues involving Quinn Insurance and the regulator in the High Court on Monday.
“There needs to be full disclosure in particular of any potential losses or liabilities for the State arising from Anglo’s involvement with the Quinn Group. The board of Anglo should not have carte blanche to increase the State’s exposure without the specific approval of the Dáil,” she said.
She also said she doubted if Anglo had the competence in the area of insurance to allow it to take over the Quinn Group. She also pointed to the reputational damage suffered by the bank.
“The focus of attention on the threat to jobs is understandable and this must continue to be a priority, but the interests of policyholders also have to be defended.
“This whole crisis is a vital test for the new regulatory regime. If the regulator is not allowed to do his job on this issue, then Ireland’s reputation will be further damaged,” she said.
Green Party chairman Dan Boyle argued that there could be no equivocation over the independence of the regulator.
“The Green Party argued for the appointment of a financial regulator from outside of Ireland to put maximum distance from the discredited system of financial regulation that had been in place and which helped cause so many of the difficulties that exist with Irish financial services.
“It is clear that the appointment of Matthew Elderfield has been an excellent appointment,” he said.
