Updated 3.50pm
TAOISEACH ENDA KENNY has said that Health Minister James Reilly’s business affairs are “entirely in order” and has insisted that the Minister has “no problem” making a statement to Dáil following revelations that he is to appear on a debt defaulters’ list this week.
Reilly is to appear on the debt defaulter’s list in the Stubbs Gazette – which publishes a register of all judgements registered in the Four Courts – in what is believed to be the first time a sitting cabinet minister has ever appeared in the magazine.
It comes after the Minister and four other business partners agreed to buy a nursing home in Carrick-on-Suir in Co Tipperary only to to fail to comply with a High Court order to pay €1.9 million to purchase the nursing home, the Irish Independent reports today.
During Leaders’ Questions in the Dáil today, Kenny was responding to questions from Sinn Féin president Gerry Adams who called on the Minister to make a statement in the Dáil on the matter.
The Taoiseach said of his party colleague: “The Minister has no difficultly making a statement to the house here,” adding that his business affairs were “entirely in order” and that he had received assurances the amount owed would be paid.
In a statement, a spokesperson for Reilly said that the Minister was working with his four co-investors to “agree the methodology for the payment of the sums due on foot of the judgement”.
James Treacy, the managing director of Stubb’s Gazette said the publication would have a “very detrimental impact” on the the reputation of the Minister.
He told Today with Pat Kenny on RTÉ Radio: “Having a registered judgement particularly for such a large amount will have an extremely detrimental effect on your ability to get credit.”
Treacy described the judgement by the Commercial Court as “exotic” saying that the way it was structured meant that all five members of the partnership are joint and separately liable for the full amount is due.
This means that if four of them cannot pay, then one of them is liable for the full amount. Treacy added that the “creditor will generally go after a good mark” and will go after someone who does not want their debt defaulters’ status publicised.
Fianna Fáil’s health spokesperson Billy Kelleher has led calls for Reilly to make a statement in the Dáil saying that the revelations were “very disturbing” while Sinn Féin president Gerry Adams has said that the Minister needed to clarify his relationship with the Green Hills nursing home.
In the Dáil, Adams raised questions about Reilly’s decision to close “296 nursing home beds” and his involvement with the nursing home but was warned by the Ceann Comhairle that it was “not custom” to inquire about Dáil members’ private matters during Leaders’ Questions.
A statement from the Minister’s spokesperson said: “On assuming office – Dr James Reilly handed over power of attorney to his
solicitor in relation to his business interest in this property.
“Subsequently in accordance with the Standards in Public Office Commission -That power of attorney was passed on the an independent 3rd party solicitor as appropriate
“A court case earlier this year, related to the property, resulted in an agreement that Dr Reilly and 4 co-investors would buy out the interests of another group of investors. That judgement of the court is not in dispute.
“The parties are now seeking to agree the methodology for the payment of the sums due on foot of the judgement. Dr Reilly has nothing to do with the ownership of the nursing home business on the property. Dr Reilly’s political colleagues are aware of his involvement in the property transaction and of his wish to divest himself of his interest as soon as agreement can be reached.”
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