Published: Thursday, 8th April, 2010 1:00pm

Strong regional support for Sean Quinn

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The full import of the threat posed to thousands of jobs in Cavan, Fermanagh and adjoining counties due to events at Quinn Insurance has now gripped the people of this area who fear a return to economically depressed times that was very much the feature of life prior to the early 1970s when Sean Quinn launched his unique Cross Border business success story.

While economic analysts offer their own personal interpretation of the backdrop that led to the Financial Regulator going to the High Court to seek appointment of provisional administrators to Quinn Insurance it is, nevertheless, the bottom line that Quinn Insurance is a profitable business with a 25% stake in the Irish insurance market and growing. Reports that there were at least 20 companies interested in buying Quinn Insurance would bear this point out. Workers with Quinn Insurance and the wider public find it hard to understand why a company that is trading well and has made a profit of €30 million in March alone should now have this burden of doubt and uncertainty cast upon it.

Surely the ramifications of what would happen when the Regular sought appointment of provisional administrators must have been appraised beforehand to senior people in the Central Bank, the Department of Finance and to the Government. The strategic importance of the Quinn Group to the Border region North and South and to the country as a whole when one things of Cork, Navan, Blanchardstown etc surely should have set alarm bells ringing and sparked the initiation of measures that would enable Quinn Insurance rectify the situation.

Light regulation was blamed for the events which led to the crash of the banks in September, 09 but it would now be a terrible mistake of strict adherence to fiscal rules could jeopardise large, viable enterprises that are key to the regional and national economy and which offer the best opportunity we have of climbing out of this recession.

Everything now depends on Monday's High Court hearing. The reasons the Financial Regulator gave for acting as he did was, he said, because Quinn Insurance had breached its solvency requirements. Quinn Insurance respond that the actions of the Regulator are unnecessary and matters could have been resolved without the recourse to such action.

The difficulty now for Quinn Insurance is that provisional administrators have been appointed and they have the quite difficult task of persuading the court to remove them and return the business to their stewardship. As far as the people of this area are concerned they want to see the management of Quinn Insurance returned to the company - they are in no doubt about Sean Quinn's commitment to this area. It is fully evident as one drives through this region. People from this Border region would rightly fear for the future if there was to be a change of ownership at Quinn Insurance. Also the continued administration of Quinn Insurance would be bad for the company which is in such a high profile and competitive business. The right of the company to trade in Northern Ireland and Britain must be restored immediately in order to protect jobs on both sides of the Border.

The Taoiseach has been quoted as offering the assistance of Enterprise Ireland to the Quinn Group. All help should be welcomed. This whole saga involving Quinn Insurance has once again brought into focus the difficulties for companies providing insurance in the healthcare sector. It is stated that Quinn Insurance have a higher ratio of indemnity than VHI but because VHI is State owned that this is not an issue of concern. Surely there should be a level playing field - VHI being State owned enjoys full State support. Is there not a valid case for providing State support for a company such as Quinn Insurance - after all there is the State guarantee to the banks which are private enterprises. If Quinn Insurance need a short breathing space to correct matters they should get it - the alternative is unthinkable.