Quinn crisis dominates Cavan Chamber ball

With the champagne flowing (sponsored by the Hotel Kilmore) and the glitz and glamour of all those present at the 2010 Cavan Chamber Ball and Business Awards on Friday night, there was little visible sign of a recession. But, although the drink was flowing, the mood was somewhat sober with the news having broken earlier that day that job losses were expected to be announced at Quinn Insurance within the week. It was this, the threat posed to Quinn Insurance and the wider Quinn group and its importance to the region, that dominated the speeches. Expressing the Cavan Chamber's full support of Quinn Insurance and its employees, Eamon McDwyer, the outgoing president, said that Cavan as a county had grown along with the Quinn Group over the past four decades. "We are horrified at yesterday's announcement by the joint administrators that they will be announcing major redundancies in the coming wee, with media reports that up to 1,500 direct jobs are under immediate threat," he said. "The Quinn Group has created thousands of high quality jobs, which have brought a sense of confidence and rejuvenation to the entire border region. If these jobs are lost, it will result in economic and social devastation to this region and these jobs will never be replaced," outlined Mr. McDwyer. He then called on Cavan/Monaghan TD, and Minister for Agriculture Brendan Smith, who was present at the ball, for him 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. He then called on the Minister to use his influence to call an urgent cabinet meeting in Cavan town to find an appropriate resolution to the matter. Mr. McDwyer referred to the emergency legislation passed in September 2009 to guarantee the banking system, and suggested perhaps another such solution was possible. "We in Cavan Chamber estimate that each direct job lost in the Quinn Group will result in a further two indirect jobs when you take into account the effect on suppliers to the group and the knock-on effect of taking this payroll out of the economy on shops, pubs, child minders etc. If the Quinn Group were to fail, the live register in this country could increase by up to 2% at a minimum annual cost of €70 million," he concluded. Following on, Shane Wilson, the regional operations manager of Quinn Insurance's business in the UK, was invited to read a letter on behalf of Quinn Insurance employees, some of whom were present. He told the minister in no uncertain terms that the current ban on Quinn Insurance trading in Northern Ireland and the UK was not sustainable. "The news on Wednesday that the financial regulator had reinstated the ability to write provisional motor business on its own was not enough," he said. "It has taken 22 days to open a small segment of this market, we can't sustain another 22 days with no action," added Mr. Wilson. Of the 700 Quinn Insurance employees based in Cavan, Mr. Wilson estimated that they generate about €20m in wages per year. "These are highly trained and skilled men and women who have had the opportunity to remain in their communities of Cavan and surrounding counties and contribute there both socially and economically in a positive fashion... If these jobs go, what is there to incentivise these people to stay? Could Cavan sustain a mass exodus from the county or indeed the country? If they do stay, what cost to the government?" asked Mr. Wilson. He said that the only way to stop this is to immediately lift the ban on NI/UK business, which he estimated has cost the company about €36m in the 24 days since it was put into administration. "Employees believe that Quinn Group needs to be part of an eventual solution as this is the only way we feel jobs can be kept and kept in the locations they are currently in. No other external investor would have invested so heavily in these forgotten rural regions at the time, nor would they have any reason to maintain employment here," added Mr. Wilson. He concluded by asking Minister Smith to "stand up and ensure no stone is left unturned" to save the jobs concerned. Responding, Minister Brendan Smith said that he has heard the calls of Quinn Insurance employees and was working tirelessly in the background to protect their jobs, as well as the interests of policy holders and taxpayers, while respecting the office of the financial regulator. He highlighted not only everything that Sean Quinn and the Quinn Group had done for the region, but also what Quinn Insurance had done for competition in the insurance market. Minister Smith assured Mr. Wilson and his colleagues in Quinn Insurance of this full support on the matter.