Kenny backs Reilly despite €1.9m debt

TAOISEACH ENDA Kenny has expressed full confidence in Dr James Reilly, despite being left in the dark about the Minister for Health’s appearance on a list of debt defaulters.

Mr Kenny and other Cabinet Ministers learned only yesterday morning that Dr Reilly’s name would be appearing in Stubbs Gazette over a €1.9 million unpaid debt, it emerged last night. This is believed to be the first time a government minister has been named in the 176-year-old publication.

Dr Reilly will today make a statement to the Dáil about the debt, which arises from his purchase with a group of investors of a nursing home in Carrick-on-Suir, Co Tipperary. The Minister and four other investors, including former Fine Gael county councillor Anne Devitt, have failed to comply with a High Court order to repay the money to other investors.

Dr Reilly will tell the Dáil today the first he learned of his appearance in Stubbs Gazette, and of a judgment registered against him last month, was on Monday night as he arrived in Cyprus on EU business.

The Minister remained abroad yesterday, but his spokesman emphasised that as one of five investors subject to the court order, he was in a minority and therefore unable to control the way the matter was handled.  On assuming office, Dr Reilly gave power of attorney to his solicitor over the investment and this was then transferred again to an independent solicitor. This was in accordance with ethics rules and meant the Minister was “at two removes” from the transaction, the spokesman said.

The issue has caused embarrassment in Government circles and annoyance among Labour Ministers, although Tánaiste Eamon Gilmore expressed full confidence in the Minister. Minister for Communications Pat Rabbitte said he was shocked at the developments.

However, Mr Kenny said in the Dáil that Dr Reilly’s business affairs were entirely in order. He spoke to Dr Reilly yesterday morning and had been assured the money would be repaid, the Taoiseach said.

An appearance in Stubbs Gazette has no direct legal implications but is taken as a sign of a person’s low creditworthiness.