Job losses at Quinn Insurance inevitable

Job losses at Quinn Insurance, including an unidentified number of positions in the Cavan office, are inevitable, according to the joint administrators appointed to the company. Staff have now accepted there will be some cuts but are increasing pressure on politicians and the Financial Regulator to lift the ban on trading in the UK and Northern Ireland, which is estimated to be costing the company up to €1.5m a day. But even if the ban is lifted, it will only pertain to certain segments of the market and the administrators last week indicated to staff that staff levels are unlikely to stay at the current level. There are 1,500 people directly employed in this area. The administrators are currently assessing the situation and are due to update staff this Friday. Last week, Matthew Elderfield lifted the ban on Quinn Insurance providing provisional drivers with motor insurance in the UK and Northern Ireland. While this is a profitable line, it's understood to represent a small portion of the company's book in the UK. Speaking at the Cavan Chamber ball on Friday night, Shane Wilson, the regional operations manager of Quinn Insurance's business in the UK, said that the lifting of the ban on provisional motor insurance in the UK was not enough. "It has taken 22 days to open a small segment of this market. We can't sustain another 22 days with no action," he said. Of the 700 Quinn Insurance employees based in Cavan, Mr. Wilson estimated that they generate about €20m in wages per year. Speaking at the same function, outgoing Chamber president, Eamon McDwyer estimated that for every job lost in the Quinn Group, it would result in the loss of a further two indirect jobs in businesses dependant on Quinn or the spending power of the Quinn employees. He called on Minister Brendan Smith and his cabinet colleagues to redouble their efforts to save these jobs. "Make no mistake Minister, the collapse of the Quinn Group would be the biggest catastrophe to hit this region since the foundation of the state and we will not stand by and let this happen," insisted the Chamber president. Also speaking at the event, the minister assured the Quinn employees of his full attention to this matter. In a statement, Mona Bermingham, a spokesperson for the employees, said that a letter from one of the joint administrators, Michael McAteer, to the workers last week clearly signalled the start of the redundancy process. "This is a devastating blow to employees who have tirelessly been campaigning for the reopening of NI/UK business so that staffing levels could be maintained," she said. Ms Bermingham hit out at the regulator for what she said was his failure to act quickly and address the issues concerned. "Failure by the regualtor to act will mean the loss of up to 1500 jobs. This indecision has now lead to the probable export of these jobs from Ireland that may never return. It is hard for the employees to accept that good viable business is being turned away from the UK/NI market due to the inability of our regulator to make a decision," she said. "If this is the future of regulation in Ireland we must assume the dole queues in Ireland will get longer, continued Ms. Bermingham. She concluded by saying that the situation has now escalated into a "crisis situation". Mr. McAteer's circular welcomed the regulator's decision to allow limited re-entry to the UK market for provision drivers. "This re-entry is only in some areas in the business plan that was submitted to the financial regulator. We will continue as a matter of urgency to liaise with the financial regulator in relation to the other UK business lines submitted in the business plan and will keep you updated accordingly," it read. However, the administrator acknowledged that the UK business will be reduced significantly compared to the levels prior to administration. Mr. McAteer also conceded that the administration process will likely impact on some of the Republic of Ireland business lines. "We are currently assessing the impact on the business and particularly the staffing levels in the short,medium and longer term. Regrettably we will be unable to continue as we are," he said. The assessment is due to be complete by Friday, at which point the administrators say they will update staff with the findings. Shane Wilson told The Anglo-Celt, however, that it's highly unlikely that details of jobs losses will be announced this Friday as part of any update. He once again emphasised that it hinged on the company's ability to write business in the North and the UK. The quicker the financial regulator makes a decision, the better but Mr. Wilson accepts there will be some job losses. Meanwhile, supporters and suppliers of the Quinn Group staged a further demonstration in Dublin yesterday (Tuesday). A convoy of about 200 trucks, organised by businesses concerned about the possibile effects of placing Quinn Insurance into permanent administration, drove from Kildare into the city centre and onto the M50 motorway. Members of the convoy, made up of representatives of about 170 firms, handed a letter into the Taoiseach's office expressing their dismay at the government's handling of the case.