“Quinn Insurance does not need a third party insurer to repay debt” – Senator Joe O’Reilly

The Quinn Family shareholders and Anglo Irish Bank have reached an agreement, which would protect 6,000 international jobs, 1,400 of which are in Cavan. This plan will maintain insurance competition and repay shareholder debt. It does not include a third party insurer and it would keep the Quinn Group as one unit, while simultaneously repaying its debt in full. Cavan’s Senator Joe O’Reilly believes that this plan, having been independently and expertly verified, is realistic and commercially sound.

“It is time the Government, at senior level acted on this plan and took these proposals seriously” says Senator O’Reilly.

The proposed plan involves an initial investment in Quinn Insurance Ltd, this would restore solvency and allow all surplus profits over the next seven years to be utilised to repay the taxpayer.

“The Quinn Group and Quinn Insurance is among the most profitable and efficient companies in Ireland, it generated €16m cash profit in first quarter of 2010 and it is a major source of employment in less-favoured rural and border areas, where the level of alternative employment opportunity is minimal.

“Since its foundation the Quinn Group has contributed over €1.3bn in tax and if allowed it could continue to make a minimum of €100m in tax contributions annually. The Government cannot afford to jeopardise these funds, by allowing a third party insurer to get on board. This third party insurer may not support local jobs in the Cavan area and with the unemployment rate at 13.5%, jobs must be protected at all costs.”

“This plan has received the unanimous support of the shareholders, it fully protects the interests of the Irish State and takes advantage of the superior performance of the Quinn Group and Quinn Insurance on the State’s behalf.

“At present there is continued uncertainty around the Quinn Group, generated by the state of Administration the company finds itself in. There is potential for further instability if the bond element of the debt continues to be traded, this is driven by the air of insecurity related to the restructure of Quinn Insurance Limited. We must instil a sense of security in the market and in employees by moving forward. The plan presented by the Quinn Family shareholders and Anglo provides this step forward and will inject confidence into the brand.

“The Quinn Group was founded in 1973 and since that time they have created thousands of direct job opportunities, not to mention the many more indirect jobs that have resulted from the company. They have always encouraged staff development and improved the skills of their employees. At present over 1,000 people in Cavan are relying on the Quinn Group to pay their bills and to keep them off the live register. The reality is that Quinn Insurance is making a profit and this profit should be harnessed to firstly, repay outstanding debt, and secondly to support the local communities.”

Senator Joe O'Reilly representing Cavan & Monaghan 2010. | An ExSite website