Reilly under pressure over €1.9m debt

Health Minister James Reilly is under pressure to explain when he will repay a €1.9m debt he partly owes before he makes a statement to the Dáil on the issue later this evening.

Taoiseach Enda Kenny knew about Dr Reilly’s debt default before it appeared in yesterday’s debt monitoring magazine, Stubbs Gazette. But he strongly defended the Fine Gael deputy leader insisting Dr Reilly’s affairs were “entirely in order” and in compliance with the code of conduct for office holders.

The Labour Party said it had full confidence in the minister and the debt issue was not discussed during yesterday’s weekly meeting between the Taoiseach and Tánaiste Eamon Gilmore. But a party source described the revelations as an “embarrassment” and not welcome news for the coalition.

Dr Reilly will arrive home from Cyprus today and will make a statement about the money he owes following a nursing home investment that turned sour.

The debt relates to a deal reached in Nov 2000 when 13 people — including Dr Reilly — came together to develop the Greenhills Nursing Home in Tipperary. It was decided that five investors — including Dr Reilly — would buy out the share of the eight others for €1.9m 10 years after the nursing home opened. When this did not happen, the eight instigated court proceedings before a settlement was reached in February when Dr Reilly and four business partners consented to a €1.9m court judgment — meaning they accept the debt is owed. The High Court set a Apr 30 deadline for the payment but it has not been made.

A spokesperson for the minister could not say when the money would be paid.

“The relevant legal people have been trying to reach agreement on the methodology of how that occurs,” he said pointing out that the minister is a co-investor and “not in a position to dictate how that occurs”.

Mr Kenny told the Dáil that on becoming minister last year, Dr Reilly handed over power of attorney to his solicitor in relation to the business “to have his interests in this matter handled from an unfettered and arms length position”.

But Fianna Fáil said the bottom line was that he is the person that owes the money and he has to take responsibility for it.

Finance spokesperson Michael McGrath said Dr Reilly must answer a number of questions “quite quickly” and that it was an “extremely serious matter”.

Sinn Féin leader Gerry Adams called for a statement from Dr Reilly, saying: “This minister has closed down 286 public nursing home beds and he has an investment in a private nursing home.”

The revelations about his business interests emerged as pressure increased on the minister over the crisis in the health service budget, where the deficit of €280m is expected to rise to €500m by the year end.

He is due to respond to a Fianna Fáil motion on health spending later this evening, when it’s expected he will address the issue of the unpaid debt.

“Minister Reilly is quite willing at any time to clear up these matters for the House,” the Taoiseach said.

The group of five who owe the money along with Dr Reilly include former Fine Gael councillor Anne Devitt, who was forced to resign form the party after the Mahon Tribunal found her actions were “entirely appropriate”.