Quinn job losses - Any anger at regulator is misdirected

Although clearly expected, the announcement yesterday that 900 jobs are to go at the offices of Quinn Insurance was still traumatic news. It is a devastating blow for people who are going to lose their jobs.

For many people, the loss of a job is probably second only in terms of traumatic impact of a death in the family. The news is, therefore, a human misfortune that will affect the lives of not just the 900 individuals who will be losing their jobs over the next 12 to 15 months, but also possibly thousands of family members who are dependent on those workers and their income.

The biggest job losses will be in Blanchardstown, Co Dublin, where 302 jobs will go. The blow will be felt particularly hard in provincial towns like Cavan and Navan. At the head office in Cavan, 226 out of 700 jobs will be lost, with 121 of those going in the first phase over the next two or three months. In Navan, 109 out of 220 jobs are to go.

Those job losses will likely entail the uprooting of families, because many of those people are unlikely to find alternative employment in those areas, especially in the midst of the current economic downturn.

That, in turn, will have a massive knock-on effect on local commerce, especially in areas already suffering from high unemployment.

It is hoped that all of the redundancies will be voluntary, as the plan is to provide a severance package of six weeks pay per year of service, including bonus payments and statutory redundancy entitlements.

In the midst of the understandable frustration, anger will inevitably be directed towards the Government, the banks, as well as the Financial Regulator, Matthew Elderfield, who put Quinn Insurance into administration due to concerns about its solvency.

At this emotive time we need to focus on the global picture. The rights and the wrongs of what happened within Quinn Insurance have yet to be identified.

It is important that everybody is aware of the bigger picture, which is this country’s need to extricate itself from the current difficulties and move forward.

We will all be better served by having an effective financial regulator, willing to exert his authority to ensure that ordinary workers are protected. Many of our current financial difficulties can be attributed to what has been categorised as “light touch regulation”.

A full explanation of how we got into the current financial predicament may take some time, but any anger directed at the financial regulator would seem to be misdirected. It seems likely now that Mr Elderfield’s proactive approach will better protect the interests of the Irish people.