MINISTER FOR Health James Reilly told the Dáil last night that financial obligations relating to a Co Tipperary nursing home “will be met”.
He said his lawyer believes that “it will be possible to reach a resolution of the issues” in the controversy.
Insisting he had “at all times acted with complete propriety”, Dr Reilly said the problem “stems from complicated litigation surrounding an investment made 12 years ago”. He regretted “that it has not proved possible to reach agreement in advance of being named in Stubbs Gazette”. But he said: “I am assured by my attorney that very significant efforts are under way to agree a methodology by which the non-recourse co-owners can be paid.”
The Minister made a 10-minute personal statement to the House late last night, following his appearance on a list of debt defaulters. Dr Reilly was named as one of five investors who had failed to comply with a High Court order in February to repay €1.9 million to other investors in the Carrick-on-Suir nursing home.
About 60 TDs were present in the chamber and Dr Reilly was flanked by a number of Cabinet colleagues including Minister for Finance Michael Noonan, Minister for Justice Alan Shatter, Minister for Agriculture Simon Coveney, Minister for Communications Pat Rabbitte and Minister for Children Frances Fitzgerald.
The Minister for Health said his interest in the co-ownership was just over 9 per cent. “My attorney cannot compel parties to reach a resolution in circumstances where my interest is a minority interest,” he said. But his lawyer had assured him “every effort is being made to resolve matters”. Dr Reilly also rejected opposition claims he had a conflict of interest because of his share “in a property that houses a private nursing home”.
Sinn Féin had claimed a conflict when he had an interest in the private nursing home sector while implementing Government policy to close public nursing home beds.
The Minister said “nothing could be further from the truth” because he was not the operator of the nursing home. “I never have been. That business is run independently.”
He had been attempting to divest himself of his interest in the property for 16 months.
“I do not have a conflict of interest. I have a single interest and that is the best interests of older persons and patients under our health services.”
He also told the House that before he was appointed to Cabinet he had intended to develop a primary care centre with partners in Nevinstown in Swords, Co Dublin. “That project is not being proceeded with and the property is for sale.”
In the nursing home investment, he said he was one of 13 co-owners who bought the lands to build the home and lease it to an operator. Under the terms of the co-ownership agreement, eight non-recourse co-owners were entitled to be bought out by June of last year.
Ultimately proceedings were issued for the recovery of rental arrears from the nursing home business. Those proceedings were taken in 2009 in the High Court against Dr Dilip Jondhale and Dr Vasudha Jondhale. Before the general election last year, Dr Reilly sought to dispose of his interest in accordance with the terms of the co-ownership agreement by offering his interest to the other co-owners. However, a buyer could not be found at that stage.
