The resumed High Court hearing on Monday will hopefully provide full
disclosure of the issues between the Financial Regulator and the Quinn
Group, however the protection of the interests of policy holders and the
preservation of the maximum possible number of jobs must be the predominant
considerations in any resolution of the current crisis.

Previous court hearings have provided solid insights in respect of other
companies and individuals in difficulties arising from the current banking
and financial crisis.

There needs to be full disclosure, in particular, of any potential losses
or liabilities for the state arising from Anglo’s involvement with the
Quinn Group. The Board of Anglo should not have carte blanche to increase
the state’s exposure without the specific approval of the Dail.

It is difficult to see a convincing case being made for what is the
proposed effective take over of Quinn Insurance by Anglo Irish Bank. Anglo
has no competence in the area of insurance and it has suffered such
reputational damage that it is difficult to see it winning the confidence
of policy holders. However, a final judgment on this may be one for the
Courts and the Administrator.

It is just ten days since the Minister for Finance, Brian Lenihan, gave the
Dail a supposedly comprehensive account of the taxpayers liability for
Anglo-Irish and the losses incurred by the bank. We need an explanation
from the Minister as to why the attention of the Dail was not drawn to the
continuing difficulties between Anglo Irish and the Quinn Group, and
particularly Anglo’s exposure in regard to the €2.8bn owed to it.

The focus of attention on the threat to jobs is understandable and this
must continue to be a priority, but the interests of policy holders also
have to be defended. The Quinn Group, like all other insurers, have
responsibilities to policy holders who pay their premia in advance and who
have to be confident that the company to whom they make the payment can
continue to provide the cover required. That is why the regulation of the
insurance sector is so important and why reserve levels set by the
Regulator have to be respected.

This whole crisis is a vital test for the new regulatory regime. If the
regulator is not allowed to do his job on this issue, then Ireland’s
reputation will be further damaged.

However, if there is to any involvement by Anglo-Irish in the resolution of
the current crisis then it is essential that the matter should be discussed
by the Dail. If such a course is being considered by the government then a
meeting of the Oireachtas Committee on Finance should be convened for early
next week and a full report given to it by the Minister for Finance.