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Is it ok to default with FG - so long as you're a FG Minister ?

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  • 10-07-2012 1:31pm
    #1
    Banned (with Prison Access) Posts: 564 ✭✭✭


    Back in January 24th, Enda said Ireland will not " have name of defaulter across our foreheads ", but today we find a FG minister doing just that. Not only that, but the default is over a nursing home and to compond things, Reilly is the Minister for Health !!! And even better again, the health budget deficit of €280million is to be debated in the Dail tonight !!!

    So
    (a) A government minister disobeyed a court order, and has been registered as a defaulter. Surely in a normal functioning democracy he resign ?

    (b) Will FG/Lab (especially Labour) give Reilly the same inquisition as they gave Mick Wallace ?

    (c) Is there any difference between FG/Labour and the previous shenanigans of FF ?

    Dr Reilly has been officially named this week on debt defaulters' list the Stubbs Gazette for failing to pay debts. http://www.rte.ie/news/2012/0710/james-reilly-debt-default.html


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Comments

  • Registered Users Posts: 2,285 ✭✭✭tfitzgerald


    He should resign and take his coffee machines with him


  • Closed Accounts Posts: 1,025 ✭✭✭Am Chile


    Back in January 24th, Enda said Ireland will not " have name of defaulter across our foreheads ", but today we find a FG minister doing just that. Not only that, but the default is over a nursing home and to compond things, Reilly is the Minister for Health !!! And even better again, the health budget deficit of €280million is to be debated in the Dail tonight !!!

    So
    (a) A government minister disobeyed a court order, and has been registered as a defaulter. Surely in a normal functioning democracy he resign ?

    (b) Is there any difference between FG/Labour and the previous shenanigans of FF ?

    Dr Reilly has been officially named this week on debt defaulters' list the Stubbs Gazette for failing to pay debts. http://www.rte.ie/news/2012/0710/james-reilly-debt-default.html

    I think most of us don't recognize nor see any difference between fg/ff/lab-its Ironic a fg minsiter is listed as a defaullter when I heard fg representives in interviews about the household tax taking the moral high grand it has to be paid/we won't have default written across our heads' regardess of someones ability or means to pay- I take it the same moral high ground will now be taken with o reily although I won't hold my breath.


  • Banned (with Prison Access) Posts: 564 ✭✭✭thecommietommy


    He should resign and take his coffee machines with him
    Reilly is closing hospital beds while he is investing in nursing homes - shades of Fiann Fail cute hoorism eh !!!

    In other countries it would be called a conflict of interest and a resigning matter :mad:


  • Registered Users Posts: 227 ✭✭Paddysnapper


    Reilly is closing hospital beds while he is investing in nursing homes - shades of Fiann Fail cute hoorism eh !!!

    In other countries it would be called a conflict of interest and a resigning matter :mad:

    When the present Government came to power, I in all innocence thought it would be a breath of fresh air through Leinster House.... What a deluded fool I was!.. The current lot in power are every bit as corrupt as the previous incumbents.... Reilly if he has any honour at all will go! I won't hold my breath.:(


  • Registered Users Posts: 331 ✭✭Heads the ball


    FG really are an appauling lot. They are basically FF dressed in different clothes with a huge amount of arrogance and smugness thrown in.

    I didnt vote for them as I was under no illusion that we would get something "new" from them.


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  • Registered Users Posts: 3,630 ✭✭✭RichardAnd


    Morally, he should resign his position. At the very least, this should mean stepping down as a minister but I believe a full resignation might be appropriate. It's hard to claim a title of "no defaulters" when a minister is himself guilty of non payment of debt.


  • Registered Users Posts: 68,317 ✭✭✭✭seamus


    Back in January 24th, Enda said Ireland will not " have name of defaulter across our foreheads ", but today we find a FG minister doing just that.
    Fairly tenuously linking two completely unrelated things. Kenny was referring to sentiment about Ireland internationally.
    It's a nice soundbite, but I fail to see the relevance.
    Not only that, but the default is over a nursing home and to compond things, Reilly is the Minister for Health !!!
    To a certain extent it would be quite reasonable to consider possible conflict of interests when you have the Minister for Health, who has domain over the public health system, with investments in a private health facility.
    There's always the question there over whether he will do the right thing for his position or his wallet.

    But at the same time if someone has experience in the area, it makes them a more suitable candidate. Who would you prefer to be minister for health - a businessman who has experience in the private health sector, or someone whose only experience with the health system was the time he had to bring his kids to A&E?

    Same is true for any ministerial position in government really. The challenge is keeping tabs on their interests and ensuring that they're kept at arms length.
    A government minister disobeyed a court order, and has been registered as a defaulter. Surely in a normal functioning democracy he resign?
    Kind of a "damned if you do and damned if you don't" thing going on with this one. Reilly basically gave someone else the power to do what they wanted to on his behalf for this one. So when they screw it up, Reilly gets blamed. If Reilly had held onto the reigns and managed the case, he would probably be accused of trying to strongarm the court or being fiscally incompetent.

    On what basis should he "surely" resign, as a matter of interest? Go through many of the TDs from any of the parties and you'll find failed businesses & investments in their wake.

    Does defaulting on a debt immediately make someone a bad person, or incapable of holding public office?
    (b) Will FG/Lab (especially Labour) give Reilly the same inquisition as they gave Mick Wallace ?
    Reilly didn't break the law. It's the outcome of a private business dealing, which to be fair is a totally different matter. It naturally does raise questions about Reilly (since someone who is financially insolvent cannot take up their seat), but I don't see any reason why the same level of scrutiny need be applied to a private business dealing as to deliberate tax evasion.

    Really the primary issue here is whether Reilly actually did anything inherently wrong.
    (c) Is there any difference between FG/Labour and the previous shenanigans of FF ?
    This week will tell if FG have the balls to not make the same mistakes as their predecessors.

    It's not possible to convincingly speak to a public about being proud of their country and working to build the economy, when members of that government are defaulting on debt, or in the case of Phil Hogan, have been found to have previously obtained favourable loans from failed banks

    If Enda had any sense, he would remove them both from their respective positions and appoint new ministers in their place. It would be a fairly meaningless move as neither minister has done anything technically wrong, but it would illustrate whether FG consider themselves to not be a carbon copy of FF and put the integrity of the party above the interests of its individual members.


  • Registered Users Posts: 4,236 ✭✭✭Dannyboy83


    In other countries it would be called a conflict of interest and a resigning matter :mad:

    This is the crux of the issue for me.

    Even if he can get away with it in Ireland (no surprise), that must surely be prohibited by EU law?


  • Registered Users Posts: 4,693 ✭✭✭Laminations


    seamus wrote: »
    To a certain extent it would be quite reasonable to consider possible conflict of interests when you have the Minister for Health, who has domain over the public health system, with investments in a private health facility.
    There's always the question there over whether he will do the right thing for his position or his wallet.

    But at the same time if someone has experience in the area, it makes them a more suitable candidate. Who would you prefer to be minister for health - a businessman who has experience in the private health sector, or someone whose only experience with the health system was the time he had to bring his kids to A&E?

    Same is true for any ministerial position in government really. The challenge is keeping tabs on their interests and ensuring that they're kept at arms length.

    I can see your point about experience but there is a difference with experience in private health care and carrying those interests with you into a position where you are charged with the management of public health care. He should have offloaded his investment and cut all connections with private providers the moment he had responsibility for health (as early as when he was given that shadow position in opposition).

    It is not appropriate for the minister of health to hold a stake in private health care. Same goes for any ministry. For instance it would be equally inappeopriate if he Transport Minister had interests in private bus hire companies or the like.

    It's especially damaging to Reilly's position given the cuts in health, the closure of beds and people's reliance on private sector care now.

    Barring some amazing clarification its a resigning matter.


  • Closed Accounts Posts: 5,797 ✭✭✭KyussBishop


    I can see your point about experience but there is a difference with experience in private health care and carrying those interests with you into a position where you are charged with the management of public health care. He should have offloaded his investment and cut all connections with private providers the moment he had responsibility for health (as early as when he was given that shadow position in opposition).

    It is not appropriate for the minister of health to hold a stake in private health care. Same goes for any ministry. For instance it would be equally inappeopriate if he Transport Minister had interests in private bus hire companies or the like.

    It's especially damaging to Reilly's position given the cuts in health, the closure of beds and people's reliance on private sector care now.

    Barring some amazing clarification its a resigning matter.
    Ya got to agree here; it's this kind of mixing between industry interests and government, in important positions where there end up being conflicts of interest, which has had a significant effect on financial regulation and such in the US.

    Regulators and advisors to the US government, coming and going between the banking industry and government; people leaving government landing high-paying token jobs in industry positions they were previously responsible for overlooking etc..


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  • Registered Users Posts: 1,728 ✭✭✭rodento


    I don't know which is worse, the situation mr reilly finds himself in, or the fact that the taoiseach thinks that mr reillys business affairs are entirely in order :eek:


  • Closed Accounts Posts: 1,025 ✭✭✭Am Chile


    This thread was started at half one- six hours later now-I have noticed some fg supporters have being very quiet so far about o'reilly being named as a debt defaulter given all the fuss they kicked up about expenses relating to Pearse Doherty and Joe Higgins in other threads.


  • Registered Users Posts: 68,317 ✭✭✭✭seamus


    Just to add a little clarification on this as they were talking about it on Matt Cooper.

    Reilly was involved in this investment as part of a consortium with the agreement that half of the group would buy out the other half after ten years.

    Things go tits up and for whatever reason, the group renege on their agreement to buy out the other half. The reasons don't seem clear for this, but it may have been the case that just one or two members couldn't (or wouldn't) meet their obligation and the remaining members were unwilling or unable to cover their shortfall. As it was a consortium investment, the option simply isn't there for an individual to pay in their share and walk away, it's all or nothing.

    When Reilly was appointed minister, he set about disconnecting himself from all interests (including being removed from the medical register). However, as he was unable to unilaterally get out of this particular investment, he was advised by a government body (PAC?) to hand it over to a trust instead. Which he did - he gave control of it to his solicitor. A court agreement was made to settle the debt, but the date to settle it was not met, which resulted in the registration of the judgement. It's not a default. Reilly claims that they're close to an agreement to ultimately settle it, but he'll probably give details of this when he makes a statement about it.

    So it would appear that there are really only two ways that this could have been avoided:

    1. Reilly could have covered the entire debt of all members of the consortium when he was elected, in order to discharge it.
    2. He could have not gotten involved ten years ago just in case he one day became a government minister

    Neither of which are reasonable solutions, I think anyone will agree.

    So, in the absence of any proof of wrongdoing on the part of minister Reilly, I don't see any reason to question the man's moral character or suitability for his position. Indeed, it would appear he did the best he could to rid himself of any possible claims of conflict, it just appears to be a matter of bad timing and circumstance. Which those of us in negative equity can sympathise with.

    Assuming that he will later go on to clear his share of the debt, this is very much a non-story, notable only because he's the first minister to have a judgement registered against him while in office. Enda may still have good cause to remove him in the interests of cleaning some egg off FG's face, but I would actually feel sorry for minister Reilly in that case, as I can't see that he's done anything wrong except get stuck with a bad investment.


  • Closed Accounts Posts: 341 ✭✭Mocrie14


    I got todays Stubbs Gazette and the judgement is not in it....where are people seeing it????


  • Moderators, Category Moderators, Computer Games Moderators, Society & Culture Moderators Posts: 8,466 CMod ✭✭✭✭Sierra Oscar


    Mocrie14 wrote: »
    I got todays Stubbs Gazette and the judgement is not in it....where are people seeing it????

    Are you reading the right edition?

    Pictures: James Reilly’s name on the Stubbs Gazette defaulters’ list


  • Registered Users Posts: 5,336 ✭✭✭Mr.Micro


    Maybe its not so much about O'Reilly being a debt defaulter, but more about what happens next, him being a Government Minister and all? At least nobody appears to have tried to cover it up and he may need to resign or get the sack, or even stay on. If any of the partners in the business venture failed to honour his/her debts then the fault may not even be wholly Mr.O'Reilly's. We will await clarification I guess.


  • Moderators, Category Moderators, Computer Games Moderators, Society & Culture Moderators Posts: 8,466 CMod ✭✭✭✭Sierra Oscar


    Of course there is also the conflict of interest that Minister Reilly has between his ministerial work and his commercial interests. It is pretty ominous to note that he has a sizeable share in a private nursing home venture at a time when he is closing down public nursing homes.


  • Registered Users Posts: 43,311 ✭✭✭✭K-9


    Of course there is also the conflict of interest that Minister Reilly has between his ministerial work and his commercial interests. It is pretty ominous to note that he has a sizeable share in a private nursing home venture at a time when he is closing down public nursing homes.

    If the FG explanation is true it would seem there wasn't much he could do to get out of the arrangement. Still, if he entered into this investment when he was opposition spokesman on Health, it would be very ill advised and a potential conflict of interest there.

    Mad Men's Don Draper : What you call love was invented by guys like me, to sell nylons.



  • Moderators, Education Moderators, Technology & Internet Moderators, Regional South East Moderators Posts: 24,056 Mod ✭✭✭✭Sully


    A few things to note here, just to clarify the conflict of interest matter.

    Firstly, its worth noting that he has listed his share in the nursing home in the register of members interests every year since his first election as a TD in 2007. Its not fresh news, everyone knew about it and the opposition didn't seem to be bothered. In 2011 he placed his ownership in blind trust since his appointment as Minister for Health, in line with recommendations from the Standards in Public Office Commission. Likewise he no longer is a GP and was seeking to take his name from the medical register.

    Secondly, this was a settlement agreed back at the end of February. Its now July and its appeares that it wasn't paid. The Minister will need to explain what the circumstances are around the debt and why it wasn't paid in the past six months (bar the size of it delaying matters, I would assume). The Minister is away but is returning tomorrow. That is why it wasn't clarified.

    Thirdly, I think Enda's debt statement was in terms of public debt that has an effect on the tax payer. This is a private debt that does not effect the public tax payer or the state coffers. If James was in the position that Wallace finds himself in, then you could repeat that quote and demand Kenny take action because its hitting the tax payer.


  • Registered Users Posts: 43,311 ✭✭✭✭K-9


    Sully wrote: »

    Firstly, its worth noting that he has listed his share in the nursing home in the register of members interests every year since his first election as a TD in 2007. Its not fresh news, everyone knew about it and the opposition didn't seem to be bothered. In 2001 he placed his ownership in blind trust since his appointment as Minister for Health, in line with recommendations from the Standards in Public Office Commission. Likewise he no longer is a GP and was seeking to take his name from the medical register.

    2011 I assume?

    Do you know if he signed up to this investment while he was the shadow Health Minister?

    Mad Men's Don Draper : What you call love was invented by guys like me, to sell nylons.



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  • Moderators, Education Moderators, Technology & Internet Moderators, Regional South East Moderators Posts: 24,056 Mod ✭✭✭✭Sully


    seamus wrote: »
    If Enda had any sense, he would remove them both from their respective positions and appoint new ministers in their place. It would be a fairly meaningless move as neither minister has done anything technically wrong, but it would illustrate whether FG consider themselves to not be a carbon copy of FF and put the integrity of the party above the interests of its individual members.

    A great post, but I have to disagree (in part) with the above. I'd remove Phil Hogan, no great loss at this stage considering the damage he/his department has done to the government and the questions around his personal life are a distraction.

    But to step aside James purely because someone else he entrusted with his private business ****ed up and because he "may" have a conflict of interest is over the top. Its purely PR. Government cant be all about PR, and the question is - is someone with the right qualifications and experience better at managing the health system than a teacher or accountant or whoever? Are his problems outweighing the benefits? I think not.


  • Closed Accounts Posts: 16,391 ✭✭✭✭mikom


    Sully wrote: »
    This is a private debt that does not effect the public tax payer or the state coffers.

    Ahh, private, just like the bondholders were private...........


  • Moderators, Category Moderators, Computer Games Moderators, Society & Culture Moderators Posts: 8,466 CMod ✭✭✭✭Sierra Oscar


    Sully wrote: »
    Its not fresh news, everyone knew about it and the opposition didn't seem to be bothered.

    That is not entirely true. Members of both Fianna Fáil and Sinn Féin have advocated for some time now that there was a conflict of interest - although the media have only become interested in this aspect of the story with the news of his debt default.


  • Moderators, Education Moderators, Technology & Internet Moderators, Regional South East Moderators Posts: 24,056 Mod ✭✭✭✭Sully


    K-9 wrote: »
    Do you know if he signed up to this investment while he was the shadow Health Minister?

    He had it since before he was a TD?


  • Moderators, Category Moderators, Computer Games Moderators, Society & Culture Moderators Posts: 8,466 CMod ✭✭✭✭Sierra Oscar


    Sully wrote: »
    He had it since before he was a TD?

    I think it dates to the early 2000's - so well before the 2007 election.


  • Moderators, Education Moderators, Technology & Internet Moderators, Regional South East Moderators Posts: 24,056 Mod ✭✭✭✭Sully


    That is not entirely true. Members of both Fianna Fáil and Sinn Féin have advocated for some time now that there was a conflict of interest - although the media have only become interested in this aspect of the story with the news of his debt default.

    Fianna Fail have tried to coax James Reilly in the past, according to newspaper reports, to run for them.


  • Moderators, Category Moderators, Computer Games Moderators, Society & Culture Moderators Posts: 8,466 CMod ✭✭✭✭Sierra Oscar


    Sully wrote: »
    Fianna Fail have tried to coax James Reilly in the past, according to newspaper reports, to run for them.

    As a member of Fianna Fáil, and as a personal friend of the Reilly family (shock, horror - we can get along you know!;)), I can tell you now that such an arrangement was never seriously on the cards.

    James comes from a staunch FG background.

    EDIT: I think in some respects it would be a pity if this all ultimately resulted in Reilly having to vacate his position - because he probably is the most qualified TD for the health ministry portfolio. Although then of course there are those who argue that his involvement in the health sector presents him with a number of conflict of interest cases which could undermine his position as a whole along with the department. It is a tricky one, and he always knew that he would come in for criticism. He needs to clear up this debt matter tomorrow, if he allows this to drag out by not answering the required questions in a satisfactory manner then he will come under severe pressure in the Sunday papers this weekend and will potentially be faced with calls for his resignation. If it comes to that then he is finished.


  • Closed Accounts Posts: 2,407 ✭✭✭Cardinal Richelieu


    As a member of Fianna Fáil, and as a personal friend of the Reilly family (shock, horror - we can get along you know!;)), I can tell you now that such an arrangement was never seriously on the cards.

    James comes from a staunch FG background.

    EDIT: I think in some respects it would be a pity if this all ultimately resulted in Reilly having to vacate his position - because he probably is the most qualified TD for the health ministry portfolio. Although then of course there are those who argue that his involvement in the health sector presents him with a number of conflict of interest cases which could undermine his position as a whole along with the department. It is a tricky one, and he always knew that he would come in for criticism. He needs to clear up this debt matter tomorrow, if he allows this to drag out by not answering the required questions in a satisfactory manner then he will come under severe pressure in the Sunday papers this weekend and will potentially be faced with calls for his resignation. If it comes to that then he is finished.

    When you see him next can you ask him what his top secret plan for an alternative route through Rush for the Eirgrid East-West Interconnector is? Almost next to impossible to get a reply from the man about a pre-election promise he made, the regulation reply is that he is working on a solution to be revealed at a later date while the link is near completion. Me thinks he hopes that people have short memories. The man is a populist with not a single ounce of political belief. Of course he seems to be more concerned about The Dublin Drainage Scheme Waste Treatment plant location. One of the shortlisted sites is near his 86 acre family farm.


  • Registered Users Posts: 196 ✭✭Wider Road


    IMO, Reilly is a person (for want of a better word) that isn't in politics for the long haul.
    I maybe wrong but I believe Mr Reilly is the biggest and bravest bluffer in FG since Ml Lowry!
    Does anyone disagree & if so names please?

    I await the FG response.


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  • Registered Users Posts: 6,448 ✭✭✭touts


    He may have handed control of his businesses over to his lawyer for the length of time that he is minister BUT he will take back control after he completes his time as a minister and he retains financial ownership of the assets and any profits they make.

    So that means as Minister for Health he has:
    Reduced the number of public nursing home beds and encouraged people to use privately owned nursing homes instead. He is the owner of a large private nursing home.
    Reduced services in public hospitals and encouraged people to use privately owned GP practices instead. He is the owner of a large private GP practice.
    Sat in on cabinet meetings that have discussed significant modifications to the laws on personal debt defaults. He is now listed in Stubbs gazette as a debt defaulter.

    It looks bad. If he was in the UK he would have resigned yesterday afternoon. Here he'll stick it out and could even be the next Taoiseach after Enda.


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