Job Losses

Dáil Éireann Debate, Wednesday - 16 June 2010

Wednesday, 16 June 2010

Questions (11)

Leo Varadkar

Question:

38 Deputy Leo Varadkar asked the Minister for Enterprise; Trade and Innovation if he will report on the workings to date of the inter-agency team that he set up, comprising of Enterprise Ireland, FÁS, Industrial Development Authority Ireland, relevant county enterprise boards, the Department of Social Protection and his officials following the announcement of some 900 voluntary redundancies at Quinn Insurance; and if he will make a statement on the matter. [24697/10]

Oral answers (5 contributions)

Deputy Batt O’Keeffe

In response to the announcement of redundancies in Quinn Insurance, I established an interagency team comprising Enterprise Ireland, IDA Ireland, the relevant county enterprise boards, FÁS and the Department of Social Protection. The interagency response team, which held its first meeting in Cavan on Friday, 30 April, has met on four other occasions since and is chaired by Mr. Dan Flinter. It is important to note that this co-ordinated response to the position in Quinn Insurance is a work in progress. The group oversees and monitors the direct responses of the relevant State agencies concerned with the Quinn Insurance locations in Cavan, Navan and Blanchardstown.

Information sessions for Quinn employees have been delivered at all three sites by Enterprise Ireland, FÁS, the county enterprise boards, the Department of Social Protection, other agencies, education providers and financial institutions as required. The focus is to ensure that employees have all the relevant and practical information necessary to help them make informed decisions as they consider their options for the future. A Start Your Own Business programme is being rolled out in Blanchardstown and Navan in response to the numbers of expressions of interest in self-employment received by the employee representative committees.

A job availability portal is now operational and it will extract information from websites on employment opportunities for the whole region, including north Dublin. This portal will be targeted at those people leaving the company and will initially be password protected to them.

A sub-group comprising the company, Enterprise Ireland, IDA Ireland and the county enterprise boards is being established to keep a particular focus on responding to companies who indicate an interest in recruiting staff leaving the company and those who are known to be actively recruiting in related sectors. From 9 June, the Department of Social Protection and FÁS have been on site in Cavan, Navan and Blanchardstown to process benefit applications and assess training needs.

I consider that the interagency team approach is the most effective way to co-ordinate the activities of the relevant Departments, State development agencies and county enterprise boards to ensure that every avenue is explored as regards potential employment opportunities for the workers affected.

Deputy Leo Varadkar

I thank the Minister for his response. The announcement of 900 voluntary redundancies in Cavan, Navan and Blanchardstown came as a body blow to all those areas, not least my own constituency of Dublin West, which has lost so many jobs in recent months. I appreciate that some good work is being done by the different agencies to assist people taking up the voluntary redundancy offer to access their entitlements and to receive benefits and training.

Has the Minister had any meetings on a possible new owner for Quinn Insurance? Who are the potential new owners? Is there a possibility that any owners would retain the jobs, take over the business as a going concern and provide the gap in the reserves? Even at this late stage could they reverse some of those redundancies?

Deputy Batt O’Keeffe

The Deputy is aware that I met the administrators on the evening they announced the redundancies. At the meeting we made it quite clear that if the business were to be sold off, it would be better to be sold to a company not operating within Ireland. In fairness to the administrators they indicated clearly that this would be their preference. That said, they would have to put it in the public arena and bids would be made. A judgment would be made on the offers put on the table.

I understood at the time that in excess of 20 expressions of interest in respect of purchasing the company had been made.

I cannot interfere with the administrators. Enterprise Ireland has an officer who liaises on an ongoing basis with the administrators and Mr. Dan Flinter, who chairs the inter-agency group and from whom I receive regular updates, is in constant contact with them. I cannot become involved by indicating the groups I might wish to see purchase the company, that is a matter for the administrators. The administration process is independent and is set up by the courts. It would be completely wrong of me to involve myself in that process or to indicate what should ultimately be done.

Deputy Leo Varadkar

I appreciate what the Minister stated. I suppose, however, that he must have some influence on the administrators, with whom I also met. Surely he could indicate to them that he would like the company to be taken over by a new owner who would be in a position to build up the reserves and take on the business, particularly that relating to the UK, as a going concern — this would ensure that existing jobs would be retained — rather than it being taken over by an owner who potentially might want to close down that market and reduce competition.

Deputy Batt O’Keeffe

There are two issues that arise, one of which relates to sustaining the existing jobs. The most important factor, for ourselves and the inter-agency group, is that the jobs which are already in place should be retained and that the business continues to grow. We all want to ensure that as many jobs as possible will be retained and that new jobs will be created by any new regime that comes into place. As already stated, the Government is most interested in ensuring that a group which does not operate in Ireland at present should come in, take over the company and provide sustainable employment into the future.