I thank the Deputies for raising this matter. On 14 April last, Anglo Irish Bank announced the appointment of a share receiver to take control of the Quinn family equity interest in Quinn Group (ROI), the ultimate parent company of the Quinn Group. The receiver holds these shares on behalf of Anglo Irish Bank.
It should be noted that a share receiver is fundamentally different from a company receiver and will not involve the sale of businesses or assets. However, this appointment has allowed Anglo, together with the senior creditors, to restructure the boards of the companies concerned and to remove Quinn family members and their associates from key board and management positions. This decision by Anglo to appoint a share receiver is very much a commercial one. In this context, it should be noted that under the relationship framework put in place under the Anglo Irish Bank Corporation Act 2009, which governs the relationship between the bank and its shareholder, the State, issues relating to the commercial activities at the bank are a matter for the board. In this regard, it is important to state the Minister for Finance has no role in day-to-day management decisions.
In order to stabilise the businesses, a five year debt restructuring plan has been agreed in principle between Anglo Irish Bank and the group's lenders. This structure will be designed to enable the businesses, which are fundamentally good and profitable businesses, to trade, develop and grow in a meaningful manner. I have been informed that the decision to appoint a share receiver will have no significant impact on jobs in the wider Quinn Group. It is in the interest of the bank that the businesses in the group are well invested and have the capacity to develop and produce profits into the future. The approach taken protects the businesses concerned and puts them on a sound financial footing. They will be run by the directors on a business as usual basis, which paves the way for maximising the repayment of debt to the taxpayer.
In regard to Quinn Insurance, as the Deputies will recall, the decision to appoint the joint administrators, pursuant to the Insurance Act 1983, to take over the management of Quinn Insurance Limited was taken in the best interests of the firm's policyholders. The aim of the appointment of the joint administrators was to allow the firm to remain open for business and to continue to be run as a going concern, with a view to placing it on an ongoing sound commercial and financial footing. From the outset, the joint administrators have concentrated on fulfilling this agenda and one of their main aims was to ensure that the value of the business was maintained in order to make it as attractive as possible to potential buyers. A key factor here was the re-opening of the profitable parts of the UK business.
On 3 June 2010, at the request of the joint administrators, advisers were appointed by the High Court to advise on any sale of Quinn Insurance Limited. The Deputies will appreciate that the responsibility for the sales process is a matter for the joint administrators who were appointed by the High Court. Therefore, the Government is constrained from interfering in the matter. The joint administrators have now considered the final bids and have selected the preferred bidder, Liberty Mutual-Anglo Irish Bank, which they believe best meets the objectives of their appointment.
This is a solution that puts the business back on a sound commercial and financial footing while at the same time protecting the interests of policyholders. Another factor in their decision to opt for the Liberty-Anglo proposal is the fact that virtually all of the jobs are protected aside from the closure of the Manchester office, which involves approximately 24 redundancies. The sale is, of course, subject to regulatory approval and the completion of contract details.
Liberty Mutual, it should be noted, is the fifth largest property and casualty insurer in the US and is a very well respected company. Liberty will own 51% of the joint venture and will operate the insurance company, while Anglo Irish Bank will own 49% and will have no involvement in the business. As Deputies will appreciate, the financial details remain confidential and are subject to the completion of legal and other arrangements being finalised. The administrators have indicated that discussions are taking place with a view to finalising the details of the deal within the next four to six weeks, with completion expected to take place at least 12 to 14 weeks thereafter, subject to certain conditions. Until the deal is finalised, no further details of the transaction will be made available.
Last year, in response to the developments in Quinn Insurance and its impact on employees' jobs, an inter-agency team was established comprising Enterprise Ireland, FÁS, IDA Ireland, the relevant county enterprise boards and the Department of Social Protection. The group meets under the chairmanship of Mr. Dan Flinter. The first meeting of the inter-agency team was held in Cavan on 30 April last year and to date 13 meetings of the group have taken place. An active ongoing dialogue with the employee representative group has been a feature of the process, and I compliment the Deputies on their cross-party support of this important group.
The primary focus of the inter-agency team was to support the affected employees, who were facing redundancy, to explore their options regarding employment and self-employment through setting up a new business and skills development, and to outline the supports available to them. Dedicated information centres staffed by the agencies were established on-site in Cavan, Navan and Blanchardstown to support the affected workers. Briefings and information sessions for the employees concerned were delivered at all three sites by Enterprise Ireland, FÁS, the county enterprise boards, the Department of Social Protection and other agencies, education providers and financial institutions as required. The inter-agency team has been an effective solution to co-ordinate the activities of the relevant Departments, State development agencies and county enterprise boards in order to drive employment opportunities for the people concerned.
The announcements on 14 April concerning the appointment of a share receiver and the naming of a preferred bidder for Quinn Insurance are significant developments. The financial restructuring of the Quinn Group, which has been agreed in principle between Anglo Irish Bank and the group's lenders, will enable the good and strong businesses to continue to trade and to grow. It is particularly important that there will be no impact on employment or on trade creditors from the restructuring. While the commercial sale process in regard to Quinn Insurance is ongoing and subject to regulatory approval, I very much welcome the positives of the proposed agreement in that almost all the jobs in Quinn Insurance will be retained. This is good news not just for the employees, but also for the local economy in the Border region where Quinn companies are based.
I thank the Deputies for raising this very important issue. I acknowledge the recognition for Sean Quinn and his family, who leave an extraordinary legacy. For a businessperson such as myself, it is most important that the jobs are secured. While these are difficult times, when one considers the potential in the Border region and the multifaceted nature of the Quinn family's operations, it is important to indicate that no jobs will be lost. I give great recognition to the Quinn workforce, who built up very successful and profitable companies. I am certain that, with the skill of management and the expertise of the staff still working in the Quinn Group, these companies will be very profitable in the future.
