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Government has paid €4 million to firms linked to Big Tobacco since 2013

James Reilly oversaw a €300,000 contract involving a law firm that had represented the tobacco industry when he was Health Minister.

Updated 3.25pm

Plain pack cigarettes PA Archive / Press Association Images PA Archive / Press Association Images / Press Association Images

GOVERNMENT DEPARTMENTS AND State agencies have, since 2013, paid out close to€4 million in consultancy fees to companies who have also represented the interests of Big Tobacco.

Figures from seven government departments show that in the last two years alone, payments of as much as €1.7 million have been made to firms who also provide, or have provided, legal and consultancy services to major tobacco companies.

The issue has come into sharp focus after Children’s Minister James Reilly effectively called for a government-wide boycott of lawyers and consultants who represent tobacco firms.

On RTÉ Radio’s This Week programme just over a week ago, Reilly was asked: “Would you like to see people who have represented tobacco in the past, or currently represent tobacco interests, not to be used by your colleagues in government?

He replied:

Personally – absolutely. I don’t believe people can be representing the tobacco industry and be representing, certainly me – and I’d much prefer if the rest of government wouldn’t have any truck with them either.

An analysis by TheJournal.ie, however, shows that at least four such companies have been paid a total of €3,939,757 for consultancy work since the beginning of 2013, when plans for plain packaging were first launched.

Before that, the Department of Health under James Reilly gave a legal firm linked to the tobacco industry a joint contract worth more than €300,000.

Responding to TheJournal.ie‘s story today, Reilly was asked if he ultimately wanted to see an end to government departments working with firms that represent Big Tobacco:
http://soundcloud.com/user900995548/james-reilly-on-thejournalies-big-tobacco-story

A government spokesperson told TheJournal.ie that the Taoiseach “fully supports Minister Reilly’s work” on plain packaging, but cautioned:

The government has not considered new criteria for consultancy contracts which are already subject to public procurement guidelines. However, where a clear conflict of interest exists, this can be taken into consideration during the tender process.

New Cigarette Packets Laura Hutton / Photocall Ireland Laura Hutton / Photocall Ireland / Photocall Ireland

Government departments and state agencies every year award hundreds of contracts to private sector businesses for a wide range of services including construction, cleaning, official photography, legal advice and PR.

Procurement, the process of advertising a need for services, accepting bids and awarding contracts, is governed by strict ethical and legal guidelines, to prevent conflicts of interest.

Equally, law firms – especially larger ones – are required to put in place “ethical barriers” when different teams are acting on behalf of opposing clients, as explained in this Law Society practice note:

The guidelines address the extra precautions that firms should take in those circumstances to ensure that no conflict of interest arises and there is no breach of the duty of loyalty, the duty to make full disclosure, and the duty of confidentiality owed to each client.

According to Professor John Flood from the UCD School of Law, large legal firms are akin to “a series of interlocking networks.”

Increasingly, firms have a kind of ‘risk register’ – where all clients are entered into a database and are checked for potential conflicts of interest.

This task is usually overseen by a designated “risk officer.”

In addition, the need for client confidentiality means larger firms generally set in place “information screens”, meaning certain lawyers are locked out of certain areas of the firm’s computer system, and work in separate offices.

The practice of client confidentiality means it’s not possible to compile a comprehensive list of firms hired by tobacco companies, and departmental expenditures for 2014 haven’t been fully published in all cases.

That being said, here’s a breakdown of the last two years of state contracts to firms that have also worked on behalf of the tobacco industry:

Arthur Cox Solicitors

15/9/2010 Arthur Cox Solicitors Photocall Ireland Photocall Ireland

Acting on behalf of Japan Tobacco International, they recently sent a letter to Ministers Reilly and Varadkar threatening legal action if planned plain packaging legislation is implemented, sparking Reilly’s call for a new procurement regime.

  • 2014: Paid €345,798 by the Departments of Finance and the Environment, including €184,000 for their help setting up Irish Water.
  • 2013: Paid €2,085,648 by the departments of Finance, Jobs, Social Protection, Education, and Public Expenditure, including legal advice to NAMA and the NTMA.

The firm is one of the largest in the state, with 350 lawyers working in dozens of practice areas, for clients from a wide range of sectors.

It also has a long history of representing the tobacco industry, acting on behalf of Gallaher Tobacco (since acquired by JTI) in product liability cases throughout the 2000s.

Between October 2010 and January 2011, the HSE Board settled on the firm for a €58 million contract to manage their procurement of legal advice from another 35 firms.

“To manage any risk associated with conflict of interest,” in the words of then Health Minister Mary Harney, the HSE in turn hired McGrigors Solicitors of Edinburgh to manage the process that led up to Arthur Cox being awarded the lucrative contract.

In September 2010, months prior, McGrigors itself represented Imperial Tobacco – the world’s fourth-largest tobacco company – in an attempt to strike down legislation against cigarette advertising in Scotland.

Between 2008 and 2010, Arthur Cox was paid €9.66 million for “banking stabilisation services” and consultancy work in the aftermath of the Bank Guarantee.

The firm declined to comment for this article.

A & L Goodbody Solicitors

  • 2014: Paid €3,671 by the Department of Finance
  • 2013: Paid €354,715 by the Departments of Finance, Jobs, Social Protection, Education and Public Expenditure, including €220,914 in legal fees from the Ombudsman’s Office overseen by Minister Brendan Howlin.

Between 2012 and 2013, the Department of Jobs, Enterprise and Innovation paid A & L Goodbody close to €168,000 – far more than it did any other consultancy firm.

In 2003, A & L Goodbody represented PJ Carroll (now a subsidiary of British American Tobacco) in the High Court, challenging Health Minister Micheál Martin on the constitutionality of the 2002 Tobacco Act.

On its website, the firm – which has 420 legal staff in five offices and three countries – promotes its experience in the “successful defence of regulatory prosecutions and product liability claims” for British American Tobacco.

It also boasts that “in hundreds of multiple product liability/personal injury claims” against PJ Carroll, “no claims against our clients have succeeded in Ireland.”

A & L Goodbody declined to comment for this article.

The company recently shared €3 million in fees with another firm, for its legal advice on the set-up of Irish Water. That firm is McCann Fitzgerald.

McCann Fitzgerald Solicitors

Imperial Tobacco restructuring PA Archive / Press Association Images PA Archive / Press Association Images / Press Association Images

  • 2013: Paid €224,239 by the Departments of Finance and Public Expenditure.

The firm is currently representing Imperial Tobacco and opening a second front in challenging James Reilly’s plain packaging legislation, according to a report in the Irish Independent last week.

In a case spanning six years between 1997 and 2004, McCann Fitzgerald defended John Player (now a subsidiary of Imperial Tobacco) against a class-action lawsuit involving 138 smokers alleging criminal negligence and breach of duty.

Along with Arthur Cox and A & L Goodbody, the firm was given a three-year contract for “corporate legal services” in relation to NAMA, by the Department of Finance.

In 2012, the Department of Justice paid them €495,232 for six months’ advice during the formulation of the Insolvency Bill.

McCann Fitzgerald – which has more than 300 legal staff in Dublin, London and Brussels – has an ongoing contract with the Department of Transport as legal advisor to NewERA, as it considers IAG’s bid to take over Aer Lingus.

A spokesperson for the firm did not respond to TheJournal.ie’s requests for comment.

Matheson Solicitors

  • 2014: Paid €20,691 for consultancy work with the Department of Jobs.
  • 2013: Paid €904,994 by the HSE, and the Departments of Public Expenditure and Finance – including legal advice on the “acquisition and sale of Irish Life.”

In the 2000s, the firm then known as Matheson Ormsby Prentice represented Philip Morris – the world’s largest tobacco manufacturer – in the Irish High Court, challenging the constitutionality of regulations about cigarette advertising.

In 2011, Health Minister James Reilly gave it the task of reviewing the private health insurance market, along with an accounting firm, in a joint contract worth over €300,000.

Today, we asked Reilly if he regretted this decision:
http://soundcloud.com/user900995548/big-tobacco-james-reilly-on-giving-work-to-matheson

Between 2012 and 2013, the Department of Finance paid Matheson just over €1 million for advice relating to the NTMA.

The firm has 350 legal and tax staff across 20 practice areas, in four offices in Dublin, London, New York and Silicon Valley.

Matheson Solicitors declined to comment for this article.

‘What appropriately can be done’

Taoiseach Enda Kenny(right) and Ministe Sasko Lazarov / Photocall Ireland Sasko Lazarov / Photocall Ireland / Photocall Ireland

Minister Reilly has upped the ante in his efforts to ostracise companies that do business with the tobacco industry.

After receiving the letter sent on behalf of JTI, he asked his department’s secretary-general for a review of the relationship between Tusla, the Child and Family Agency, and Arthur Cox Solicitors, who are their legal advisors.

In response to a number of questions from TheJournal.ie, a spokesperson for Minister Reilly would only say that the secretary-general had reported back, and that the Minister was now seeking legal advice as to “what appropriately can be done” in relation to Tusla’s contract with the firm.

Speaking to reporters today, Reilly said:

“I’ve asked my department to seek legal advice in relation to ensuring that there is no future conflict of interest, real or perceived, that could be in any way contrary to the best interests of children and that’s where it lies at the moment.”

Last week, the Irish Cancer Society announced it would no longer be accepting donations from the firm on the basis of its representation of JTI.

It remains to be seen, however, whether Reilly’s ministerial colleagues will join him in ridding their departments of the extensive services of companies who have worked with Big Tobacco.

- additional reporting form Hugh O’Connell

Read: Irish Cancer Society rejects money from Arthur Cox law firm over tobacco links>

It’s highly likely there will be a legal challenge to plain tobacco packaging, says Law Society>

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65 Comments
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    Mute david dickson
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    Mar 2nd 2015, 11:48 PM

    The same law firm cannot represent both parties in a court case so it is not right in any situation of conflict of interest.
    May I add it is great to see TheJournal doing some of it’s own journalism. Well done and keep it up.

    431
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    Mute winding_down
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    Mar 3rd 2015, 12:28 AM

    Not factually correct.

    Solicitors in the same law firm can represent both sides in a civil case IF the parties on both sides agree, and IF they can successfully build a “Chinese Wall” to prevent information being exchanged between them.

    It doesn’t arise in a criminal case because the State is on the other side.

    151
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    Mute Hermes
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    Mar 3rd 2015, 4:58 AM

    Maisons ?

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    Mute Dan Mullins
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    Mar 3rd 2015, 8:32 AM

    think winding_down has been watching Suits a bit too much lately. that exact scenario he mentioned was on the latest episode. Doesn’t mean it applies here in Ireland

    35
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    Mute Carlow Wexford
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    Mar 3rd 2015, 8:37 AM

    “Chinese Walls” are extremely rare in countries other than Ireland. Corporate lawyers from other countries are astonished, disgusted and amused when they hear that this practice is the norm here.

    65
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    Mute winding_down
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    Mar 3rd 2015, 8:51 AM

    @Dan: I’ve never seen Suits! (although I’ve heard it’s good). I have legal training though. Fiction very often mirrors reality though, and in this case does – the explanation above is the position on Ireland.

    50
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    Mute Chucky Arlaw
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    Mar 3rd 2015, 4:15 PM

    The main reason for that however wexfordcarlow is that there are only 5 firms big enough to handle corporate law in ireland, so you’re gonna have some crossover. And it’s not ‘every country’ even Australia have the same problem, and if I recollect correctly had the exact same situation as this in the 90′s when being sued by a gambling company

    16
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    Mute brian magee
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    Mar 3rd 2015, 11:05 PM

    Dan your wrong , winding is correct

    6
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    Mute mcgoo
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    Mar 2nd 2015, 11:18 PM

    Solicitors will represent whoever pays them. Morality and/or any sense of social conscience is left firmly on the door step.

    214
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    Mute winding_down
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    Mar 2nd 2015, 11:26 PM

    What’s your point? Everybody gets representation. It’s a cornerstone of our adversarial legal system.

    122
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    Mute Anthony Lang
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    Mar 3rd 2015, 12:10 AM

    Everybody gets representation! That’s a big claim.

    Not even the Law Society of Ireland or the Bar Council would stand over such an unqualified and absolute claim.

    Still, it sounds good and you will get lots of green thumbs.

    45
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    Mute winding_down
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    Mar 3rd 2015, 12:20 AM

    Everybody is “entitled” to representation, then. That is what I meant.

    98
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    Mute Derek Mahon
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    Mar 3rd 2015, 12:32 AM

    They provide a service, it doesn’t matter how sh*tty some of their clients are as long as they do a good job. If I’m a pilot and fly CEO’s of tobacco co. around the world, am I a heartless pr*ck? Or am I just doing my job?

    132
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    Mute Robespierre
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    Mar 3rd 2015, 8:16 AM

    You’re just another heartless pr!ck doing your job and relying on the yuppy Nuremberg defence – I gotta pay the mortgage

    23
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    Mute Avina Laaf
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    Mar 3rd 2015, 9:03 AM

    Spot on Derek. Unfortunately at this stage whenever I see the word “Exclusive” attached to a Journal article I automatically think ‘non-story’….

    19
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    Mute Ivan Murphy
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    Mar 3rd 2015, 9:13 AM

    Winding_down…. have you got something to protect?

    As someone how has zero time for FG. Good on James Reilly!

    11
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    Mute winding_down
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    Mar 3rd 2015, 11:17 AM

    @Ivan: Nope, other than the rule of law. We have a independent Courts system for a reason – we leave it up them to interpret the law. If we let politicians do that too then we’d be living under tyranny.

    18
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    Mute seamus mcdermott
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    Mar 3rd 2015, 7:24 PM

    How about if you’re flying Mafia bosses around the world? “Oh,” you’ll say, “mafia bosses are criminals!” I wouldn’t do that.
    Tobacco execs are accomplices in the murder of millions of nicotine addicts each year.
    “Murder? They choose to smoke”
    Just like you choose to eat. You choose to wear shoes. If we poisoned your food or put cyanide in your shoes, you’d be the victim of a murder.
    If tobacco execs actively conspire to addict half the population to their poisonous product–a product that kills half who use it and a substantial number who don’t use it, then I would say they’re murderers.
    Just rich murderers. So if you choose to work for rich murderers, I’d say be careful who you tell about it. Someone who lost a family member to the murderers might not take kindly to you toadiness.

    2
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    Mute Mark O'Hagan
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    Mar 2nd 2015, 11:15 PM

    No problem however when we have heads of State visit us to shove a pint in front of them for an obligatory photo-op and enrich the swollen coffers of Diageo.

    197
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    Mute Pedro deluvio
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    Mar 3rd 2015, 12:33 AM

    @mark

    Very good point.

    If I’m not mistaken, did the journal not run a story last week about the cancer society refusing a donation from a certain solicitors office?

    Hmmmm

    I smell trouble.

    67
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    Mute Kerry Blake
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    Mar 2nd 2015, 11:22 PM

    James Reilly another example of a useless minister.

    159
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    Mute An Ciarraioch
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    Mar 2nd 2015, 11:06 PM

    Are we surprised – The level of Conflict of Interests and payments to “Insiders” , where FG /Lab./ FF , is concerned is palpable .

    It can only stop when The Electorate bring it to a stop in a General Election.

    132
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    Mute winding_down
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    Mar 2nd 2015, 11:18 PM

    Ireland and the Irish legal system is tiny; conflicts of interest are almost inevitable. It’s how they are managed that matters.

    122
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    Mute Anthony Lang
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    Mar 3rd 2015, 12:14 AM

    Big tobacco interests can use their big profits to pay big law firms with big resources to try to prevent the Government implementing a measure with the limited potential to reduce the popularity of smoking.

    40
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    Mute Pedro deluvio
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    Mar 3rd 2015, 12:55 AM

    Who would you suggest to go in?

    4
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    Mute Pedro deluvio
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    Mar 3rd 2015, 1:03 AM

    @winding.

    What you say has some truth, I’m sure.

    Try it this way.

    GOVERNMENT vs TOBACCO GIANT.

    “Same solicitors”

    12
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    Mute Harold
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    Mar 3rd 2015, 7:51 AM

    That can be said of any business

    8
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    Mute von
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    Mar 3rd 2015, 3:54 PM

    Doesn’t make it right. We could be the best small Country in the world if we had honest people in high places.

    14
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    Mute Mark Miller
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    Mar 3rd 2015, 12:18 AM

    What is the point of this story apart from James Reilly trying to grab some public approval? Will it be subsequently divulged that the same solicitors, had some connection with Jameson or Diagio, or God forbid, Cadburys and then we will have an attention grabbing “has been” minister trying to jump on the band wagon, screaming about alcoholism or obesity and how this country’s  government  couldn’t possibly deal with such ambulance chasing low lives?

    64
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    Mute Jamie McCormack
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    Mar 2nd 2015, 11:29 PM

    Father Fintan Stack, he had his fun.

    61
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    Mute dj dangermouse
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    Mar 3rd 2015, 12:11 AM

    Apparently you can’t say nothing about government ministers without getting your comment deleted.

    54
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    Mute CreditTiger
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    Mar 3rd 2015, 11:07 AM

    “If you ever say that to me again…..I’ll put your head through the Dáil”

    27
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    Mute von
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    Mar 3rd 2015, 3:46 PM

    @DJ its a no go area I’ve tried

    9
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    Mute Denis O Brien
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    Mar 2nd 2015, 11:37 PM

    bout time these figures came out. so 4 million to attempt to bring in plain packaging that has not been proven yet to have the desired effect, with the roll out in 2017, we could be looking at double, triple, even x 10 that figure.
    .
    so how many quit groups would that fund? how many free nicotine replacement therapy’s would that have provided ? how much school level education would that have helped with ?

    Muppet are in control that’s fur sure. !!!

    48
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    Mute mammysdinners
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    Mar 2nd 2015, 11:48 PM

    The pie just gets bigger every year, why does a heavily indebted state not farm out the likes of this to students to figure out, abolish USC by using student assignments instead of paying consultants, no austerity for the top 25,000!! Swathes of people cleaning up in this country.

    40
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    Mute dj dangermouse
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    Mar 3rd 2015, 12:06 AM

    Am I barred

    35
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    Mute CreditTiger
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    Mar 3rd 2015, 11:14 AM

    Yup…..Penfold too……obviously!!

    9
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    Mute Vinny Wallace
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    Mar 2nd 2015, 11:17 PM

    F**k gave him a Doctorate? Alexander Dumass

    32
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    Mute David McCarthy
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    Mar 3rd 2015, 7:30 AM

    I think the ministers comments are unsettling.Access to legal services and representation is vital in any democracy,regardless of the issue at hand. Effectively the minister wants to eliminate opposition to government policy by threatening the firms who represent interests other than that of the government. If we take this to it’s logical conclusion , a firm of solicitors representing water protesters,for example,could be subject to the same undue pressure as Arthur Cox and others find themselves under. We live in an open and transparent democracy, citizens and businesses must be allowed challenge legislation regardless of it’s contents.

    31
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    Mute Drew
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    Mar 3rd 2015, 1:00 AM

    First of all the government should act in the interest of the tax payers… Meaning it should seek the best value for the money it spends when procuring legal and consultancy services.

    Secondly… That directly, in Ireland and within the slim definition of legal services. I’m pretty sure the government has spent tens of billions on companies with some involvement with ‘big tobacco’ each of the big 4 accountancy firm provide services for a tobacco company somewhere in the world… Philip Morris the world’s biggest tobacco company was once part of Kraft foods… The second largest tobacco company in the world is directly owned and all profits are collected by
    the Chinese government.

    As I said in the previous article it was a mistake not to accept the Arthur cox money… But that’s a charity, and their donors support. They certainly lost my support from doing so.

    25
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    Mute Drew
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    Mar 3rd 2015, 1:06 AM

    Don’t forget all the banks the government proper up… Who do all the tobacco companies have their corporate accounts with?

    16
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    Mute Celticspirit321
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    Mar 2nd 2015, 11:04 PM

    James Reilly when retirement speech: http://youtu.be/E8AIh2qoSnM

    25
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    Mute Celticspirit321
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    Mar 2nd 2015, 11:06 PM

    Typo of course:)

    12
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    Mute Ciaran McCann
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    Mar 3rd 2015, 10:15 PM

    Wanking causes blindness!! And his point is??

    7
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    Mute johngahan
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    Mar 3rd 2015, 7:26 AM

    This story is worthy of the Daily Mail.

    What next?

    Fine Gael minister driving German car brand linked to Nazi weapons manufacturers in WWII?

    Government buying fuel for air corps from energy company linked to oil spill in Gulf of Mexico?

    19
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    Mute Hermes
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    Mar 3rd 2015, 7:51 AM

    But the Fine Gael Minister is driving such a car
    The irish are beginning to realise that they pay too much for cars while the germans get 7.00 per kilo for their beef while buying Irish beef to make up the shortfall at 3.40 kg -
    Germany is isolating itself with greed and control and Irish politicians that back this type of Europe would want to read the Irish Constitution to realise how much trouble they are in …

    22
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    Mute Graham Carrick
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    Mar 3rd 2015, 8:13 AM

    What a rubbish article. €4m is absolutely nothing for a government the size of Ireland’s to spend on legal fees. Who cares?

    13
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    Mute Ivan Murphy
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    Mar 3rd 2015, 9:17 AM

    I do. €4million is a lot of money. Who many nurses would that pay for?!

    22
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    Mute seamus mcdermott
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    Mar 3rd 2015, 7:30 PM

    You would, if your ambulance broke down on the way to the cardiac cath lab in Limerick.

    4
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    Mute Brian Dowling
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    Mar 3rd 2015, 8:05 AM

    €900k on legal fees relating to a sale that (supposedly) brought in €1.3B. Now… that’s pretty much most of the money wiped out. Who apparoves these things? It’s ridiculous.

    12
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    Mute Aonghus Collins
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    Mar 3rd 2015, 12:12 PM

    I don’t think you know how Billions work…

    11
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    Mute Brian Dowling
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    Mar 3rd 2015, 12:20 PM

    Yes, it was a stupid mistake. I wrote that before my morning coffee. Even still, 900K in legal fees is ridiculous. I’d love to see how that was made up.

    5
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    Mute Conor O' Halloran
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    Mar 3rd 2015, 9:40 AM

    Eh… so what? Sure haven’t we paid many multiples of that to firms that auditied and advised our bankers as they ran this entire country into the ground?

    11
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    Mute Bill Madden
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    Mar 3rd 2015, 4:08 PM

    Silly story, so I can’t use solicitor “A” because he represented criminal “B” so by association I am linked to criminal “B” ….sometimes I really wonder about people!!

    10
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    Mute Joseph O'Regan
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    Mar 3rd 2015, 6:04 PM

    Corruption corruption and more corruption. Feed the boys forget principal.

    3
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    Mute Zena 92
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    Mar 3rd 2015, 5:43 PM

    If someone is going to smoke taking brands off the packing is going to make no difference

    3
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    Mute Tom Burke
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    Mar 3rd 2015, 5:16 PM

    Surely if the State, on our behalf and at our expense, is prosecuting or defending a position in the civil court the sole criterion in selecting legal advice should be the best affordable to prosecute/defend the case

    2
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    Mute Mick Wright
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    Mar 9th 2015, 6:26 PM

    No the criteria should also include a proviso that there is no ‘conflict of interest’ …This is probably one of the most ‘obvious’ rules in any form of consultancy services procurement.

    Basically you do not hire a consultant who advises your competitors unless you are planning on bribing them or twisting their arm for information!

    ….and remember this particular industry (tobacco) earns its living by killing 50% of its own customers…. do you really think bribing solicitors is below them?

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    Mute Frank Browne
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    Mar 3rd 2015, 11:15 PM

    well done Mr Reilly, good day for the future health of our kids

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    Mute Michael Sands
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    Mar 3rd 2015, 6:02 PM

    I thought that was called lobbying by lobbyists and was normal?

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    Mute Mick Wright
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    Mar 9th 2015, 6:21 PM

    Why is this not a total revaluation to me?

    Ohh yeah, thats right, its a story about how governments spend money…. I wonder how much information about the governments plans on plain packaging found its way into the boardroom of Japan Tobacco…. My guess would be as much as they wanted.

    My guess is the tobacco giants target solicitors that represent governments to get that information… money talks after all!

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    Mute Fergus Flanagan
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    Mar 4th 2015, 3:14 AM

    Conflict of interest.

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