The Minister for Health James Reilly addressed the Dáil this evening explaining how his name appeared in the debt-defaulter’s list in Stubbs’ Gazette over a €1.9m debt linked to the Green Hills nursing home in Tipperary.
He outlined complex ownership arrangements since the investment was first made in 2000 and a series of legal disputes since 2004 in the Circuit Court, High Court and Commercial Court.
Dr Reilly said he holds a 9 per cent share in the investment and that he was one of five recourse co-owners. He is in effect a minority shareholder.
There were another eight investors, regarded as non-recourse owners, who were involved in the deal 12 years ago to buy land in Tipperary, build a nursing home and lease it.
Insisting he had "at all times acted with propriety," Dr Reilly said that he has never had any role in the on-the-ground operations at Green Hills.
"In March 2011 after being appointed to government I granted power of attorney to my solicitor to dispose of my interests in the nursing home," he added.
Dr Reilly said he sought the advice of the Standards in Public Office Commission in October 2011 after his solicitor had failed to dispose of his interests in the home on a number of occasions.
He said he was advised that it would be acceptable to "proceed on a power of attorney basis."
"This advice was received early in January 2012 and power of attorney was granted to a third party solicitor. I hope it is clear to deputies that I sought at all times to comply with the code of conduct for office holders," he said.
“I do not have a conflict of interest. I have a single interest and that is the interest of older people and patients in our health service,” he said.
He very much 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 underway to agree a methodology by which the non-recourse co-owners can be paid".
"I entered politics late in life. I did so in pursuit of no business interests whatsoever.
"I did so because I passionately believe that we can provide better services to citizens. I passionately believe that we must put patients at the heart of our health service."
About 60 TDs were present in the chamber for Dr Reilly's ten minute personal statement. 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 and Minister for Communications Pat Rabbitte and Minister for Children Frances Fitzgerald.
Earlier Taoiseach Enda Kenny has said it was “preposterous” to suggest that Dr Reilly was deliberately closing public beds to drive people into nursing homes he had an interest in.
During leaders’ questions in the Dáil this morning Mr Kenny told Sinn Féin president Gerry Adams “before he was ever appointed as Minister for Health he declared his interest in a number of businesses including in a nursing home of which he is a part-shareholder as an investor in Carrick-on-Suir”.
The Taoiseach said Dr Reilly had declared publicly his interest in this business and “as a Minister of Government he sets out policy of Government in respect of changing the nature of the structure of health”.
Mr Adams, who claimed Fine Gael’s policy was to privatise the health services, asked the Taoiseach if it was a conflict of interest that the Minister was closing 600 community nursing home beds while having an interest in the private nursing home sector.
The Taoiseach said to Mr Adams: “You seem to be deliberately implying that the Minister is deliberately closing public beds to drive people into nursing homes in which he has an interest. This is a preposterous assumption.”
He criticised Mr Adams’ assertion “when the Minister first of all makes declares as a matter of public interest, his interests in businesses and has divested himself through the power of attorney and legal advisors to deal with that unfettered and at arm’s length”.
Mr Kenny also rejected Mr Adams’ claim that investments in nursing homes was “part of a tax scam” and said they were tax breaks.
Defending the Minister’s plans on community nursing homes, Mr Kenny said “Government policy is to change the structure and the nature of the delivery of health services in the interests of patients in an efficient and cost-effective manner”.
He added that a number of changes were being made “to the structures of the bed situation” in both public and private nursing homes.
This morning the Fianna Fáil leader Michael Martin said Dr Reilly must explain to the House why he has not honoured a High Court judgement.
“It is a serious issue in terms of the public interest that a Government minister would not be in compliance with a High Court order.
“I find it difficult to accept a person’s financial affairs are ‘completely in order’ when they are in breach of a High Court order,” Mr Martin added.
Additional reporting: PA