FG urges Lenihan to outline views on Quinn rescue plan
Talks over the weekend failed to convince the Financial Regulator to allow more time to strike a deal and he will press ahead with today’s High Court hearing to appoint a permanent administrator to Quinn Insurance.
The Quinn Group is likely to seek an adjournment to the hearing for “whatever additional details need to be ironed out to get everybody comfortable with what the proposals are”, according to group development director Kevin Lunney.
He said if the company goes into administration and then sold to another insurance group, the Quinn family will have “much more difficulty” in paying off the €2.8 billion they owe to Anglo.
The regulator, Matthew Elderfield, is understood to have felt there were no new proposals in yesterday’s talks with Anglo and Quinn representatives.
The Government would have to sign off on the proposed Anglo plan and Fine Gael said yesterday it would also have to go before the Dáil.
The party’s deputy spokesperson on Finance, Kieran O’Donnell, said: “We haven’t heard anything from the Minister for Finance Brian Lenihan in terms of how he views the question of Anglo becoming involved in the Quinn Group.”
He said the minister should come before the Oireachtas Finance Committee tomorrow and reveal “exactly what his views are on the Anglo involvement and what discussions he had with Anglo on the particular issue”.
He believes that, because the minister effectively controls Anglo on behalf of the taxpayer, “any major decisions will have to come back before the Dáil”.
The insurance company needs €150 million to meet the regulator’s requirements on insurance insolvency.
The issue has not yet been discussed at cabinet. The Department of Finance was not involved in yesterday’s discussions but “kept informed” on their progress.
Minister for Agriculture, Brendan Smith, who represents the Cavan Monaghan constituency where most of Quinn’s 5,5000 employees are based, said: “The objective of the discussions is to meet everyone’s requirements: the taxpayers, the interests of the employees and to ensure the requirements laid down by the regulator are met as well.”
Mr Smith said there is “huge public interest” in saving the 5,500 jobs and while Sean Quinn had made a mistake investing in Anglo “he made very important decisions over the years that grew his company to one that is employing, on this island, 5,500 people”.
He told RTÉ Radio: “I grew up and I saw the Quinn group grow and provide employment for the country. That part of the country was devastated by emigration. We now have a major corporation that is truly cross-border in nature.”
Mr Lunney said the media had been “unfair” because it did not take into account the “contributions Sean Quinn has made”.
He said: “If Sean Quinn had not been here over the past 37 years, there would be no €1.3bn paid in taxes to the Irish exchequer, there would be no employment in this area.”
