Quinn Group committed to Fermoy, says chairman

Quinn Group chairman Sean Quinn has given a commitment to save the 300 Bupa jobs in Fermoy, whilst pledging to take on the Government and its risk equalisation policy.

Mr Quinn was reacting to the health insurance emergency legislation which was passed by the Dáil last night.

“My colleagues and I went down to Fermoy last Friday night, met all the staff and took them out for dinner,” he said. “I gave them a personal commitment that we would commit ourselves fully to Fermoy and I intend to honour that commitment.”

“We intend to fight this draconian legislation, the risk equalisation scheme and the legality of the Vhi through the necessary and appropriate channels.

“While we do not like being involved in this unseemly and unnecessary row, we feel that with the contracts and commitments we have made to our policyholders and staff we are left with no option.

“Thankfully, we have the financial strength to fight the total inequities imposed on us and our customers in order to make the Irish health insurance market one of the best in the world and one we can all be proud of.”

Mr Quinn went on to allege that semi-state insurance provider Vhi was trading illegally.

“In our view, the position taken by the Vhi and now backed by this legislation, is untenable,” he said. “The Vhi, is in our opinion, trading illegally without the required solvency, is charging far too much for their products and is being propped up by the Irish taxpayer without any accountability.”

Mr Quinn also revealed details of the meeting between the company and Minister for Health Mary Harney recently.

“On Monday of this week the Quinn Group met with Minister Harney and the officials of her department where it was explained in unambiguous terms that the Quinn Group is fully behind community rating in the health insurance market and would actively work to ensure it was maintained,” he said.

“We explained that we do not believe risk equalisation to be necessary in order to support that position.

“We also explained that the Quinn Group was willing to take over the entire VHI business without the need for risk equalisation payments in order to resolve the current impasse.

“We offered to put up a 100% solvency margin, rather than the normal 40% requirement in order to assure the Government that there would always be money there to pay to the claims.

“The VHI has been the State insurer for many years, has an extremely loyal customer base and is currently charging much higher premiums – therefore, there should be no need for risk equalisation payments.”

Mr Quinn went on to criticise the treatment of semi-state companies in Ireland, whilst refusing to blame the minister directly for the situation.

“This situation is not the current Minister’s fault,” he said. “But unfortunately it is not unusual in Ireland.

“Whilst we do not want to get involved in a slanging match, I can think of other State-owned businesses that were not able to compete with the private sector and either had to be subsided, sold or bailed out.

“We completed a contract with BUPA based on existing legislation and now the Government brings in emergency legislation to make us subsidise their own business, which we believe to be trading illegally.

“How can we be expected to run a business if Government can change legislation retrospectively which changes this business from a profitable activity to a loss-making one?”