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More Revenue Shenanigans from Mick Wallace

  • 07-06-2012 7:47am
    #1
    Registered Users, Registered Users 2 Posts: 13,104 ✭✭✭✭


    Mick Wallace makes €2.1m Revenue settlement

    PAUL CULLEN, Political Staff

    THE CONSTRUCTION firm of Independent TD Mick Wallace has made a €2.1 million settlement with the Revenue Commissioners for under-payment of VAT.

    The settlement, which arises from the failure of MJ Wallace Ltd to make full tax returns on apartment sales over a two-year period, will be published on the Revenue’s next quarterly list of tax defaulters next week.

    The Wexford TD believes that none of the money will be paid to Revenue because his company is insolvent and he is not personally liable.
    http://www.irishtimes.com/newspaper/frontpage/2012/0607/1224317444365.html

    At a time when public opinion of property developers (or builders, as we used to call them) is at an all time low, I do find myself pondering the contradiction that is one such developer sitting in the Dáil. That's before we even get into the shouts of "Corruption! Corruption!" that are frequently heard whenever the subject of TD's is discussed in Ireland.

    I found this bit particularly galling:
    Although MJ Wallace Ltd does not have a tax clearance certificate, Mr Wallace said he himself did. “Mick Wallace is completely tax compliant,” he said.
    So in other words, "Ya, my business is crooked, but I'm clean as a whistle".

    I would ask why Wexford chose to elect this guy, but I'm afraid I know the answer already - "sure hasn't he done great things for Wexford?!?"


«134567

Comments

  • Closed Accounts Posts: 6,684 ✭✭✭JustinDee


    Its like a truly sick joke. Watching his lip wobble as he slammed the banks etc following the last budget announcement was irony supreme. Now the limp noodle excuses for being nabbed on fraud charges, on top of defrauding own staff of their own entitlements and then on top of the multi-million Euro judgment on being a bad debtor.

    He's VERY lucky there on the charges. VERY lucky. As far as I'm concerned, any credibility he ever had as a representitive in the Dáil has been belittled by his criminal activity.
    And his constituents in true Irish form will probably still vote him to represent them next time around.


  • Closed Accounts Posts: 3,513 ✭✭✭donalg1


    Nothing about this story actually surprises me, its not the first time we have heard news like this about him and surely wont be the last either. It was a true shame when he got elected, anyone that voted for him obviously didnt know anything about him as he is indicative of everything that is wrong with this Country.

    Best part of it is where he says “With hindsight, if I had realised the business was unsaveable, I wouldn’t have tried to save it. By filling in a false declaration, I was trying to save the company. I thought we would get the money. I thought I could see light at the end of the tunnel but I was wrong.”

    Basically I filled in a false declaration and now I have been caught, ooops, but oh well what can I do.

    Classic!!


  • Closed Accounts Posts: 1,846 ✭✭✭Fromthetrees


    He was described as a 'left wing developer', he was proud to be called it too. Looks like he swapped one gravy train for another in quite a seamless way. Hard to take him seriously if he goes about his business that way, wasn't there some issue with him not paying his workers at some point too.


  • Closed Accounts Posts: 3,513 ✭✭✭donalg1


    He was described as a 'left wing developer', he was proud to be called it too. Looks like he swapped one gravy train for another in quite a seamless way. Hard to take him seriously if he goes about his business that way, wasn't there some issue with him not paying his workers at some point too.

    He didnt pay into the pensions of his employees, was brought to court and paid then as far as I remember.

    He should be arrested again over this debacle.


  • Registered Users, Registered Users 2 Posts: 11,184 ✭✭✭✭martingriff


    The 2 most galling things were 1.

    Him saying he did it but it was for the company. Hands up here who believes him (Did he not have problems with the Employers PAYE/PRSI which can stop a worker getting the benefits they deserve if they need them (could be wrong about it)

    The second one is he wont be paying as the company is insolvent. If he has any morals he should be trying to pay some of it back. If I said what I thought of him I would be banned

    But i suppose he is taking advantage of the limited liability laws that are there


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  • Registered Users, Registered Users 2 Posts: 7,718 ✭✭✭whippet


    Will he be going to jail for this fraud?

    Looks like he won't despite other business men recently getting jail time for similar types of fraud.

    The man's position is untenable at the very least, he is a politician getting paid from the public purse, that same purse he has admitted to defrauding to the tune over over a million euro.


  • Registered Users, Registered Users 2 Posts: 7,872 ✭✭✭Dickerty


    Please God his bank force bankrupcy on him, then he'll have to lose his seat. For a TD to admit defrauding the state and performing an ILLEGAL act, and think he's not culpible, is ASTONISHING, even for this country. In the UK, someone puts in some shifty expenses and they GO TO PRISON for it.

    How is defrauding the state of over €1M worth it to save 60 jobs? What you really mean is, it was more important to look after your friends than to obey the law?

    Hell in a handbasket...


  • Closed Accounts Posts: 6,684 ✭✭✭JustinDee


    Thankfully though he's going to Poland for the Euros so he can take a little break from all this bother...


  • Closed Accounts Posts: 9,362 ✭✭✭Sergeant


    Hopefully he'll apply the same stringent standards to himself as he does to those who sit on the government benches, and resign his seat.

    It will also be interesting to see what the other members of the technical group he is a part of have to say about the issue. Their new comrade knowingly, and deliberately, decided to make an under declaration to Revenue.

    I've never had much time for Mick. He struck me as being the Dáil 2.0 style of parish pump, sleeveen politician.


  • Registered Users, Registered Users 2 Posts: 4,067 ✭✭✭Gunmonkey


    JustinDee wrote: »
    Thankfully though he's going to Poland for the Euros so he can take a little break from all this bother...

    Now obviously its going to be a "fact finding trip" or some form of "cultural/sport integration & arrangement" on his TD expenses form....because the poor fella has very little money, sure how is he meant to go to the Euros unless we pay for it :rolleyes:


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  • Registered Users, Registered Users 2 Posts: 1,683 ✭✭✭plasmaguy


    I never had much time for him.

    He was one of these big property developers who lived the high life, was back and forth to Italy and so on, spent millions on his pet project Wexford Youths and then didn't have enough money to pay VAT or creditors.

    The guy is an idiot, full stop.


  • Registered Users, Registered Users 2 Posts: 13,104 ✭✭✭✭djpbarry


    whippet wrote: »
    Will he be going to jail for this fraud?
    Why would he? It's been settled out of court.
    Dickerty wrote: »
    For a TD to admit defrauding the state and performing an ILLEGAL act, and think he's not culpible, is ASTONISHING, even for this country. In the UK, someone puts in some shifty expenses and they GO TO PRISON for it.
    Who has gone to prison in the UK as a result of "shifty" expenses claims?


  • Closed Accounts Posts: 88,972 ✭✭✭✭mike65


    djpbarry wrote: »
    Why would he? It's been settled out of court.
    Who has gone to prison in the UK as a result of "shifty" expenses claims?

    http://www.independent.co.uk/news/uk/crime/peer-lord-hanningfield-jailed-for-expenses-fraud-2305378.html

    http://www.bbc.co.uk/news/uk-politics-15594452

    http://www.bbc.co.uk/news/uk-politics-13467137

    pay more attention old chap!


  • Closed Accounts Posts: 16,096 ✭✭✭✭the groutch


    hopefully they enact the rarely used "reckless trading" laws to make him as a director personally liable for the company's debts.


  • Registered Users, Registered Users 2 Posts: 7,718 ✭✭✭whippet


    djpbarry wrote: »
    Why would he? It's been settled out of court.

    He has agreed to pay the VAT owed, interest and penalties (if this gets paid or not is another issue) .. this will be a debt on the company MJ Wallace Ltd which obviously hasn't a pot to pee in to.

    However, Mick Wallace TD has admitted to personally making the fraudulent payments .. this is a separate matter altogether, Fraud to the tune of €1m should result in jail terms .. as some recent judgments have shown.

    Another point I would make is; as Wallace knew the company was in dire trouble and felt that fraudulent VAT returns was the only way to save the company, as a director, in the knowledge that the company was in severe trouble could he be held personaly liable for any debts incurred in that time? Was he recklessly trading ?

    Either way, he was probably unfit for office before most most definitely is now.


  • Closed Accounts Posts: 2,216 ✭✭✭gerryo777


    whippet wrote: »
    He has agreed to pay the VAT owed, interest and penalties (if this gets paid or not is another issue) .. this will be a debt on the company MJ Wallace Ltd which obviously hasn't a pot to pee in to.

    However, Mick Wallace TD has admitted to personally making the fraudulent payments .. this is a separate matter altogether, Fraud to the tune of €1m should result in jail terms .. as some recent judgments have shown.

    Another point I would make is; as Wallace knew the company was in dire trouble and felt that fraudulent VAT returns was the only way to save the company, as a director, in the knowledge that the company was in severe trouble could he be held personaly liable for any debts incurred in that time? Was he recklessly trading ?

    Either way, he was probably unfit for office before most most definitely is now.

    One only does jail time in good old Ireland for under-declaring VAT on garlic.

    Developers,bankers & politicians get off scott free, they all know too much about the fraud that was committed on the people of Ireland by bertie and his mates......:mad:


  • Registered Users, Registered Users 2 Posts: 7,872 ✭✭✭Dickerty


    djpbarry wrote: »
    Why would he? It's been settled out of court.

    No, he's agreed a settlement, but has stated that it is unlikely to be paid as the company is insolvant, and he has no personal liability
    djpbarry wrote: »
    Who has gone to prison in the UK as a result of "shifty" expenses claims?

    As mike65 has posted. 16 months for a £30K fraud. And the only reason Wallace has come out and admitted it now is cause it would have shown on the Revenue's next public list, not cause he feels remorseful...


  • Registered Users, Registered Users 2 Posts: 7,872 ✭✭✭Dickerty


    whippet wrote: »
    Another point I would make is; as Wallace knew the company was in dire trouble and felt that fraudulent VAT returns was the only way to save the company, as a director, in the knowledge that the company was in severe trouble could he be held personaly liable for any debts incurred in that time? Was he recklessly trading ?

    Either way, he was probably unfit for office before most most definitely is now.

    If this was found to be true, he could be barred from being a company director for a long time. But could still hold office as a TD. :rolleyes:


  • Registered Users, Registered Users 2 Posts: 13,104 ✭✭✭✭djpbarry


    mike65 wrote: »
    Ah, yes, sorry. I was restricting myself to current MP's and couldn't think of anyone who'd done jail time.
    whippet wrote: »
    He has agreed to pay the VAT owed, interest and penalties (if this gets paid or not is another issue) .. this will be a debt on the company MJ Wallace Ltd which obviously hasn't a pot to pee in to.

    However, Mick Wallace TD has admitted to personally making the fraudulent payments .. this is a separate matter altogether...
    Well, no, not really, because he has admitted this in his capacity as director (or whatever) of MJ Wallace Ltd.
    whippet wrote: »
    Either way, he was probably unfit for office before most most definitely is now.
    That's really the point. Whatever about the nuances of company law, the fact that this guy is an elected representative is somewhat perplexing. Be interesting to see if he's returned at the next election, bankruptcy notwithstanding.


  • Posts: 5,121 ✭✭✭ [Deleted User]


    Dickerty wrote: »
    And the only reason Wallace has come out and admitted it now is cause it would have shown on the Revenue's next public list, not cause he feels remorseful...
    Maybe he got it out of the way now so it doesn't interrupt him watching Euro 2012

    http://www.thejournal.ie/mick-wallace-wants-dail-summer-break-to-move-so-tds-can-watch-euro-2012-281802-Nov2011/


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  • Moderators, Category Moderators, Computer Games Moderators, Society & Culture Moderators Posts: 8,601 CMod ✭✭✭✭Sierra Oscar


    I am surprised that there are not people calling for his resignation. Between this and him failing to pay pension contributions for his workers he has shown himself to be a shady character.

    Also, how can you take the ULA serious when you have someone like Mick Wallace as a leading member?


  • Registered Users, Registered Users 2 Posts: 13,189 ✭✭✭✭jmayo


    The 2 most galling things were 1.

    Him saying he did it but it was for the company. Hands up here who believes him (Did he not have problems with the Employers PAYE/PRSI which can stop a worker getting the benefits they deserve if they need them (could be wrong about it)

    The second one is he wont be paying as the company is insolvent. If he has any morals he should be trying to pay some of it back. If I said what I thought of him I would be banned

    The guy this morning on Morning Ireland had the gall, the sheer neck to answer when asked where this leaves his Dail seat that Mick Wallace the man has a tax clearance cert, but MJ Wallace Construction company does not and is insolvent.
    Basically Mick Wallace the man keeps his seat on a technicality.

    Who again made the decision that MJ Wallace Construction company would not pay their VAT bills?
    Who again was one of the primary owners and beneficaries of the MJ Wallace company ?

    The fact that there was a settlement agreed means nothing because he has admitted that there is no money to pay the revenue.

    To add insult to injury not alone has he stiffed the taxpayer for over 2 million, he is getting the taxpayers to fund his generous salary and future pension. :mad:

    The guy has basically given the two fingers to the taxpayers of this country.
    Maybe those that voted for him in Wexford will understand when Wexford hospital or a number of schools in the area have to make over 2 million in cuts.

    I am not allowed discuss …



  • Closed Accounts Posts: 7,973 ✭✭✭RayM


    Also, how can you take the ULA serious when you have someone like Mick Wallace as a leading member?

    He's not a member of the United Left Alliance. Don't worry though - I'm sure there are plenty of other reasons not to take them seriously.


  • Registered Users, Registered Users 2 Posts: 13,189 ✭✭✭✭jmayo


    whippet wrote: »
    He has agreed to pay the VAT owed, interest and penalties (if this gets paid or not is another issue) .. this will be a debt on the company MJ Wallace Ltd which obviously hasn't a pot to pee in to.

    That agreement means nothing and is not worth the paper it is written on.
    His company has no money and thanks to limited company he does not have to pay it.

    Of course his taxpayer funded salary and pension is secure until the next election when going on form in other constituencies he will be probably reelected as he is a fine fellow that created a few jobs, threw some crumbs to the locals and backed a sports team :rolleyes:

    This country will always be a sh**hole until the people wise up and stop electing cretins that are robbing us blind.
    whippet wrote: »
    However, Mick Wallace TD has admitted to personally making the fraudulent payments .. this is a separate matter altogether, Fraud to the tune of €1m should result in jail terms .. as some recent judgments have shown.

    Another point I would make is; as Wallace knew the company was in dire trouble and felt that fraudulent VAT returns was the only way to save the company, as a director, in the knowledge that the company was in severe trouble could he be held personaly liable for any debts incurred in that time? Was he recklessly trading ?

    YES
    whippet wrote: »
    Either way, he was probably unfit for office before most most definitely is now.

    He joins a long line of such luminaries.

    I am not allowed discuss …



  • Moderators, Category Moderators, Computer Games Moderators, Society & Culture Moderators Posts: 8,601 CMod ✭✭✭✭Sierra Oscar


    RayM wrote: »
    Also, how can you take the ULA serious when you have someone like Mick Wallace as a leading member?

    He's not a member of the United Left Alliance. Don't worry though - I'm sure there are plenty of other reasons not to take them seriously.

    Should have said the technical group of which he is a member of.

    I wonder will anyone in the group comment publicly on this matter?


  • Registered Users, Registered Users 2 Posts: 13,104 ✭✭✭✭djpbarry


    jmayo wrote: »
    The guy has basically given the two fingers to the taxpayers of this country.
    Maybe those that voted for him in Wexford will understand when Wexford hospital or a number of schools in the area have to make over 2 million in cuts.
    Probably not, given that Mick will probably be leading the protests.


  • Registered Users, Registered Users 2 Posts: 324 ✭✭octo


    On a basic TD's salary, and not fogetting the geberous overnight expenses from his constituency, isn't he on something around 70 or 80 thousand per annum? Couldn't he at least attempt to pay off a little of it?

    He's defrauding the Irish state. That's us.


  • Registered Users, Registered Users 2 Posts: 1,831 ✭✭✭GSF


    As someone on twitter said today, the garlic smuggler who got 6 years for VAT fraud must be feeling a bit unlucky today. If only he had stood for the Dail...


  • Closed Accounts Posts: 3,513 ✭✭✭donalg1


    octo wrote: »
    On a basic TD's salary, and not fogetting the geberous overnight expenses from his constituency, isn't he on something around 70 or 80 thousand per annum? Couldn't he at least attempt to pay off a little of it?

    He's defrauding the Irish state. That's us.

    Couldnt they just deduct it direct from his salary seeing as he owes the state and the state are giving him money, take 90% of his monthly salary until its paid back or as long as he is receiving state money.


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  • Registered Users, Registered Users 2 Posts: 13,104 ✭✭✭✭djpbarry


    donalg1 wrote: »
    Couldnt they just deduct it direct from his salary seeing as he owes the state and the state are giving him money...
    He doesn't owe the state, his company does. Legally, there's a big difference. Limiting one's liability is one of the main reasons people go to the trouble of setting up limited companies.


  • Registered Users, Registered Users 2 Posts: 6,920 ✭✭✭Einhard


    Oh but lads...he has long hair...and sure he's inarticulate and doesn't seem to know what he's talking about half the time...but he wears pink shirts lads...and while he may be frequently incoherent...he funds Wexford youths...and he may have defrauded his employees and the taxpayer...but he's sticking it to the man...anyone who criticises him is just a bitter FFer...

    In the absence of Mick's usual supporters I thought I'd just give their point of view on the matter based on past warblings...


  • Registered Users, Registered Users 2 Posts: 4,034 ✭✭✭Theboinkmaster


    Am i missing something? He's admitted to deliberate tax fraud - why is he not being charged by the gardai?


  • Registered Users, Registered Users 2 Posts: 4,946 ✭✭✭Bigus


    Am i missing something? He's admitted to deliberate tax fraud - why is he not being charged by the gardai?

    The gardai are not responsible for collecting taxes.


  • Registered Users, Registered Users 2 Posts: 1,477 ✭✭✭legendary.xix


    There are many examples of people committing tax crime and being put in jail. Does this apply to TDs?


  • Registered Users, Registered Users 2 Posts: 4,034 ✭✭✭Theboinkmaster


    Bigus wrote: »
    The gardai are not responsible for collecting taxes.

    Doesn't answer my question - he's admitted to the fraud, so why not charged?


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


    In my opinion he should get jail . He admitted fraud I don't care if he thinks "it was the right thing to do" he should still pay


  • Registered Users, Registered Users 2 Posts: 5,965 ✭✭✭creedp


    donalg1 wrote: »
    Couldnt they just deduct it direct from his salary seeing as he owes the state and the state are giving him money, take 90% of his monthly salary until its paid back or as long as he is receiving state money.

    The same way as they are deducting the money owed by Nama'd developers out of the €200k salaries NAMA are paying them to look after thier portfolios and the rent they are paying them for teh occupation of the busted developers properties ... bottom line some people never lose ...


  • Registered Users, Registered Users 2 Posts: 5,633 ✭✭✭TheBody


    He should face the same consequences that you or I would face. In reality, I fear that shag all will happen.


  • Closed Accounts Posts: 3,513 ✭✭✭donalg1


    djpbarry wrote: »
    He doesn't owe the state, his company does. Legally, there's a big difference. Limiting one's liability is one of the main reasons people go to the trouble of setting up limited companies.

    I realise this, but bloody hell he deliberately didnt pay his taxes. I wonder would he have done it if he could be held liable for it or could be forced to repay it or go to jail himself.

    I bet he wasnt on the breadline himself when he wasnt paying his taxes, driving around in his nice jeep spending money left right and centre no doubt.

    But still he has openly admitted to intentionally breaking the law, surely that cant be seen as ok.


  • Registered Users, Registered Users 2 Posts: 6,920 ✭✭✭Einhard


    Yes.

    Won't happen though.


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  • Moderators, Society & Culture Moderators Posts: 9,769 Mod ✭✭✭✭Manach


    Whilst prison should be a very last resort for debtors, perhaps he should be an opportunity to re-coup the money he tax owes. Unless of course he somehow enters government where I believe it is the done thing for taxpayers to bail out those who are imprudent with monies.


  • Registered Users, Registered Users 2 Posts: 1,375 ✭✭✭DoesNotCompute


    If he has indeed committed tax fraud, Revenue should be stringing this fella up by the cojones, to demonstrate that even elected representatives cannot evade/avoid tax and expect to get away with with. Make an example of him!


  • Closed Accounts Posts: 6,684 ✭✭✭JustinDee


    Bigus wrote: »
    The gardai are not responsible for collecting taxes.

    Either is the DPP, though it is they who should be calling him


  • Closed Accounts Posts: 2,948 ✭✭✭gizmo555


    djpbarry wrote: »
    He doesn't owe the state, his company does. Legally, there's a big difference. Limiting one's liability is one of the main reasons people go to the trouble of setting up limited companies.

    In order to gain the benefits of limited liability, directors take on significant responsibilities. It's fair to say those responsibilities include not knowingly and deliberately under declaring VAT liabilities by more than €1m.

    IMO he should be vigourously pursued by the state to make him personally liable for this debt. The Office of the Director of Corporate Enforcement should be investigating him too, if they're not already.

    [Edit - actually, you can make a complaint to the ODCE directly using the form here. I intend to do just that and I would encourage anyone else who feels strongly about this to do likewise.]


  • Registered Users, Registered Users 2 Posts: 13,104 ✭✭✭✭djpbarry


    In my opinion he should get jail .
    Fortunately we have courts to decide such things.
    gizmo555 wrote: »
    In order to gain the benefits of limited liability, directors take on significant responsibilities. It's fair to say those responsibilities include not knowingly and deliberately under declaring VAT liabilities by more than €1m.
    I'm certainly not defending him, but as I said earlier, the reason I started the thread was no to debate the intricacies of company law and decide who is liable for what - that's a whole other discussion.

    The question here is what are the people of Wexford doing electing a pretty dodgy builder to the Dail? I could maybe have understood it ten years ago, but now?


  • Registered Users, Registered Users 2 Posts: 549 ✭✭✭unit 1


    I dont have a business background but would I be right in assuming that to incur a vat liability he actually will have received the funds.
    This means that he actually at one point had the cash, but decided not to hold onto it and pass it onto revenue, and not owe the revenue the vat and have to raise the funds to cover the vat by his own means.
    Ming and minger methinks.


  • Closed Accounts Posts: 2,948 ✭✭✭gizmo555


    unit 1 wrote: »
    I dont have a business background but would I be right in assuming that to incur a vat liability he actually will have received the funds.
    This means that he actually at one point had the cash, but decided not to hold onto it and pass it onto revenue, and not owe the revenue the vat and have to raise the funds to cover the vat by his own means.

    That's how it works, in essence.

    Wallace has a bigger issue than just not paying the VAT - if he had declared the amount owing but pleaded inability to pay it all when it was due that would be one thing.

    He - on his own admission - deliberately falsified his company's VAT return, knowing it was illegal to do so.


  • Registered Users, Registered Users 2 Posts: 28,404 ✭✭✭✭vicwatson


    Doesn't answer my question - he's admitted to the fraud, so why not charged?


    It's a civil NOT a criminal matter.

    Revenue can pursue him.


  • Closed Accounts Posts: 2,948 ✭✭✭gizmo555


    It's a civil NOT a criminal matter.

    Revenue can pursue him.

    It's both!


  • Registered Users, Registered Users 2 Posts: 28,404 ✭✭✭✭vicwatson


    djpbarry wrote: »
    Fortunately we have courts to decide such things.
    I'm certainly not defending him, but as I said earlier, the reason I started the thread was no to debate the intricacies of company law and decide who is liable for what - that's a whole other discussion.

    The question here is what are the people of Wexford doing electing a pretty dodgy builder to the Dail? I could maybe have understood it ten years ago, but now?

    Have you looked at the alternatives for the people of Wexford at the time, at all costs Fianna Fail weren't getting majority votes. None of the politicians work for Wexford, they bring in SFA investment and jobs to Wexford, they all just talk a good show. They are all and always have been a disaster for Wexford.

    Look at Howlin for example, an ex Minister, TD etc before being elected again a year ago - never did a tap for Wexford, yet he was forever topping the poll.

    Paul Kehoe is a joke - Chief Whip of the gov party and what's he dones for Wexford.

    Anyone who wants to contradict me please provide valid examples of what Wexford politicians have brought to Wexford in the last 10/15 years.

    Wallace was voted partly protest/partly young vote/partly as people thought as an Independent they might have an alternative representative (just as they voted for Twomey as an independent and then he jumped ship to Fine Gael - a big two fingers to the electorate that voted for him as an independent).

    Vote for crap, get crap, and on the other side choices are so terribly limited in Wexford.


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