Ivor Callely avoids jail after settling long-running debt

Former TD led the court on ‘merry dance’ before borrowing money to pay down debt

Former politician Ivor Callely has avoided another jail term after finally settling a long-running debt.

The ex-Fianna Fáil minister has paid €1,755 he owed for more than three years to an accountancy firm but Judge Michael Coghlan said on Wednesday he led a "merry dance" over seven court appearances to resolve the debt.

He ordered him to pay an additional €1,750 in costs arising out of the action which came close to seeing Callely being jailed again. Finalising the case, the judge warned he would not wait another four years for him to pay the outstanding legal fees.

Callely (58) of St Lawrence's Road, Clontarf, was jailed for five months in 2014 for using false invoices to claim expenses of €4,207.45 at Leinster House between November 2007 and December 2009 while he was a member of the Seanad.

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A bench warrant for his arrest was issued on May 17 by Dublin District Court in an unrelated case. These proceedings resulted from his failure to comply with terms of a 2013 district court judgement compelling him to pay a €1,755 debt or face jail.

The former minister of State owed the money to Galway based accountants Gallagher & Company who had previously asked the court to issue a committal order. Callely had been warned by the judge that he was facing jail and had been also ordered to give a “root and branch” account of his finances.

On Wednesday, Karl Moran BL for Callely told the court that the "substantive debt" of €1,755 had been discharged by his client to the accountancy firm.

Solicitor for Gallagher & Company, Mark Newman said it had been "in part discharged" but the outstanding €150 had not been paid. This cost was a result of expenses from hiring a private investigator in April to establish the whereabouts of Callely who also spends time in Northern Ireland and also has an address at Howth Road, Killester, Dublin 3.

Judge Coghlan asked both sides to address the issue of costs. Mr Moran said his client was in a difficult position regarding paying costs as €1,600 was being sought.

The judge said this matter had “a certain history” which ran back to 2013 and there had been “numerous appearances” in court.

Mr Moran said Callely “is under extreme financial pressure and the substantive debt has been paid and he had to get a loan to pay that off”. He asked for a maximum amount of time to discharge the costs.

Judge Coghlan said he would not wait another four years for the matter to be concluded.“You appreciate the history of the matters. There have been a number of occasions that your client was in court and he was reminded that a consent order was put in place. In short a merry dance was being led,” said the judge.

The court rose to allow both parties agree a figure for costs. A figure of €1,750 was agreed by both parties which included the outstanding amount of €150, the expense from hiring a private investigator.

Judge Coghlan made an order that the costs be paid within thirty days.

At a previous stage in the case, the former TD, who claims he needs €2,500 a month “for a reasonable living”, said he has an income of €7,683 a month. He claimed he pays €4,800 a month on a lease for a commercial property in Dublin which he lets out but he explained it was difficult to find tenants able to afford the rent.

Callely failed to turn up to his next hearing on May 17 and a warrant was issued for his arrest. The warrant was executed on May 25 when he met gardai by arrangement and had a doctor’s note to explain why he had missed court.