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A private company managing homeless accommodation in Dublin made nearly €3 million profit in 2016

R&G Administration manages and oversees accommodation for homeless families at two locations in Dublin.

00122465_122465 File photo of the Regency Hotel in Dublin (pictured in 2011). Leon Farrell / RollingNews.ie Leon Farrell / RollingNews.ie / RollingNews.ie

A COMPANY THAT is involved in managing homeless accommodation for Dublin City Council made a profit of almost €3 million in 2016.

R&G Administration manages and oversees accommodation for homeless families at two seperate locations in Dublin.

It operates rooms at The Bonnington Hotel – formerly the Regency Hotel - on the Swords Road, Whitehall. It also manages homeless accommodation at a property on the North Circular Road.

At the Bonnington, the company has a contract in place with DCC for the upkeep and management of about 80 rooms for homeless families.

R&G does not own the hotel, which belongs to the McGettigan Group.

The rooms in question are separate from the main area of the hotel, and are accessed through a separate lobby.

R&G liaises with the families and maintains the premises.

It is unclear how many rooms are being managed by R&G at the North Circular Road facility, which is used as emergency accommodation.

original (7) File photo of the Regency after a shooting there in 2016. PA Wire / Press Association Images PA Wire / Press Association Images / Press Association Images

Accounts for 2016 – the most recent year available – filed by R&G show that it made an after tax profit of €2,929,045 for the year.

This was a jump of almost €2.6 million on profits of about €385,151 from 2015. Profit for the company increased steadily before this from 2012 onwards, before jumping in 2016.

It is not clear if the entirety of R&G’s profits relate to payment it received from the council, or if it is engaged in other activities.

The 2016 financial report for homelessness services in Dublin shows a payment of €525,000 to R&G for “emergency accommodation for families North Circular Road”.

Payments for the Bonnington – then called the Regency – were likely contained in the €46.8 million given to commercial hotel providers of emergency accommodation.

No names or breakdown is given of individual hotel providers, with the council citing reasons of commercial sensitivity.

Despite numerous attempts by TheJournal.ie to reach the company, no one had responded from R&G at the time of publication.

Bonnington Hotel

Private hotel and commercial providers in Dublin have been used increasingly for homeless accommodation over the past five years, as the number of homeless families have shot up.

The former Regency Hotel (which became infamous in 2016 as the site of a gangland shooting) has been used since at least 2014 for housing homeless families.

The hotel was also in the media in June, 2016, after a young homeless couple and housing activists camped outside protesting that conditions in the hotel were unsuitable.

Prior to this the family were asked to leave the hotel as a result of a dispute.

The DRHE said that at the time that the issue “gave rise to substantial health and safety concerns for staff”. It also said it worked with R&G who provide the accommodation.

original (6) People camped outside the Regency Hotel in 2016. Irish Housing Network Irish Housing Network

Detailed documents from the time – released to TheJournal.ie under the Freedom of Information Act – show a dispute between staff and the residents in question.

In the documents, a person who inspects the former residents’ room found that there was a serious issue with mould there that was not addressed properly due to confusion when the issue first arose.

“Unfortunately the room had two issues and because of “loose communication” maintenance I was dealing with only one,” the person says in a note to Dublin City Council.

I should have inspected the room myself and not relied on someone else’s opinion.

Separately, in May, a number of homeless families staying at the Regency Hotel spoke to TheJournal.ie about conditions there.

Following this, DCC carried out an investigation about safety, hygiene and other problems outlined by the families.

The council’s facilities team visited the site and asked R&G to rectify safety concerns and address issues around the shared kitchen space and treatment of families by staff.

At the time, a spokesperson for R&G told TheJournal.ie on condition on anonymity that tensions can run high at times in the hotel because of the difficult situations families are going through.

“Our residents are going through a very stressful time being homeless,” they said.

Having to look after children in a hotel room is not easy. Naturally tensions run high sometimes and disagreements come about between residents and staff, and residents alike. I would like to think and hope that the majority, if not all of our families are happy living with us.

R&G Administration 

R&G Administration was established in December 2008, then-named DB BER Certificates Dublin.

The company paid out almost €557,000 in wages, salaries and social welfare costs in 2016, compared to just above €396,116 the previous year.

In 2014, it had 11 employees and paid out wages, salaries and social insurance costs of €128,808 (the numbers of people employed at the company for 2015 and 2016 are not available).

Public accounts are not available for 2013. In 2012, the company changed its name from DB BER Certificates Dublin, to R&G Administration.

That same year, the company was taken over by Raymond and Grace O’Connor, who both became the company’s directors and are its only shareholders.

DB BER Certificates Dublin was first incorporated in December 2008, but prior to 2012 the company listed no profit or revenue figures in its accounts.

In a statement, a spokesperson for the Dublin Regional Homeless Executive  said that private emergency accommodation operators are subject to standards and conditions set out in the Information and Guidelines for Service Users and Service Providers which came into effect in 2016.

They are also subject to the terms & conditions of the lease agreement.

“All operators must ensure staff are vetted and must adhere to child protection policies.  The DRHE provides training to private emergency operators’ as required,” the spokesperson said.

They declined to give the amount of money paid to R&G Administration for managing the homeless accommodation.

“We do not currently publish amounts paid to individual providers for reasons of commercial sensitivity,” the spokesperson said.

Read: Is handing out free food and clothes to homeless people really the best way to help them?

Read: The number of homeless families staying in hotels in Dublin has shot up once again

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    Mute Cathal
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    Jan 22nd 2018, 12:12 AM

    Not free houses, we need affordable houses for working people

    534
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    Mute Sean Conway
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    Jan 22nd 2018, 7:17 AM

    @Cathal: There’s no such thing as free housing. they pay differential rent.

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    Mute Siobhán Ni Mhurchú
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    Jan 22nd 2018, 7:50 AM

    @Sean Conway: and what if they are on the social ?

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    Mute Sean Conway
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    Jan 22nd 2018, 9:06 AM

    @Siobhán Ni Mhurchú: Do you really think that if no money went into affordable housing. the ‘squeezes middle’ would benifit. then your deluded. the richest 1% got 83% of the wealth. they don’t care about the squeezed middle. wise up.

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    Mute Al Coholic
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    Jan 22nd 2018, 9:07 AM

    @Siobhán Ni Mhurchú: the vast majority are in employment.

    28
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    Mute Gillian Scully
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    Jan 22nd 2018, 10:33 AM

    @Cathal: If they can make so much profit how come a semi state could not do the same and then profit could have back into the system to help more people?

    44
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    Mute Andy Lawrence Moore
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    Jan 22nd 2018, 11:48 AM

    @Gillian Scully: Many 1000′s ask the same question . Social housing is an asset & a revenue generator for future projects be they housing or other ! The last time I checked my local council made a decent surplus on it’s existing social housing stock !

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    Mute P.J. Nolan
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    Jan 22nd 2018, 1:41 PM

    @Andy Lawrence Moore:
    Check again.
    First I should say I believe we need massive amounts of social housing built but I have a problem when people suggest that councils will make profits on social housing, they never have and never will.
    Their income will be lower, because they charge an affordable rent rather than a market rent and their costs will be higher because of the inevitable layers of management.
    Social housing is badly needed, but we have to accept there will always be an ongoing cost.

    4
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    Mute Ibhar Mac Suibhne
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    Jan 22nd 2018, 11:35 PM

    @ Gillian , that’s what’s known as ‘disaster capitalism’ According to neoliberal ideology (FG/FF and labor) there’s opportunities in both successful economies and also where there is disaster … and the Govt should in no way interfere in the magic of the free market !
    That’s why we have a housing crisis !

    2
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    Mute Al Coholic
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    Jan 23rd 2018, 9:07 AM

    @P.J. Nolan: of social housing wasn’t sold off the same house could be a home for generations of families and the number of units need built would be a fraction of what is needed now. No reason why it can’t be cost neutral in the longer term.

    1
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    Mute Noel Allan
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    Jan 22nd 2018, 12:14 AM

    How many homeless families could get housed in a one year period for the cost of even €2 million? This little island has become a joke.

    466
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    Mute Cathal
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    Jan 22nd 2018, 12:57 AM

    How many people start families when they can’t afford to house them?

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    Mute Sean Conway
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    Jan 22nd 2018, 7:29 AM

    @Cathal: Are you from the family planning clinic?

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    Mute alphanautica
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    Jan 22nd 2018, 7:31 AM

    @Sandra O’Fucáif: To be fair, if my parents/bros & sisters/mates had massively discounted houses from the State I’d be a saint to decide I’m going to work like a slave instead of taking that obvious familiar path. It makes no economic sense to do otherwise.
    Furthermore, if I’m immersed in a community that more often relies on the state in that manner it is also likely I might not have been inspired or supported in my education or career ambitions or have access to role models and so I am unlikely to see far north of 30k a year anyway, even if I do work hard.
    One of the long long term solutions to homelessness (to reduce the homeless of 2050, is ensuring babies being born to the homeless families of today are set on a path to economic freedom in 20 to 30 years time.
    A big part of that will be education, education, education from a very early age. Not many politicians want to think more than 5 years into the future though.

    47
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    Mute James Conway
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    Jan 22nd 2018, 9:02 AM

    @alphanautica: so the new threshold in society is to be earning over 30k otherwise your not working hard enough? What a load of…. U blue shirt …….
    Get a life

    26
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    Mute Al Coholic
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    Jan 22nd 2018, 9:09 AM

    @Sandra O’Fucáif: if he was on the dole you would be moaning also. If he’s working and on a housing list he can’t be earning much. There are income limits above which he doesn’t qualify.

    21
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    Mute Noirin Kavanagh
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    Jan 22nd 2018, 11:35 AM

    @alphanautica: first time I found myself agreeing with you on this topic, but I do. Generational poverty is a societal problem and education along with reform to ensure genuine equality of opportunity would turn this around in a couple of generations. By reform I mean a far more equal distribution of the wealth of the country, which is perhaps where we would then disagree…..

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    Mute Dave Hammond
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    Jan 22nd 2018, 12:02 PM

    @Noel Allan: hmm ffs journal the two lines that say it is not clear if the entirety of profits are related to payments receive from Dcc or if they are from other activities

    / that’s a very very very important couple of lines in this whole article ! It’s understandable people will be outraged if this level of profits can be earned subcontracting on the back of a homeless crisis / but it’s also an unacceptable in my view to leave this article open to the possibility that 99% of the profits could be from “ other activities” altogether / it seems unlikely but seriously can the journalists not do a bit better job framing the narrative and digging the actual facts before everyone goes jumping to assumptions / I know I know I just thought I’d ask!!

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    Mute Deborah Rea
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    Jan 22nd 2018, 12:47 PM

    @Cathal: Easy to say when abortion isn’t legal in this country and many people can’t afford to go to England so they’re put in a situation which they don’t want to be in either I was 18 having my first child and yes before someone says it I had the bar in my arm but it got lost and end up by the bone so it failed and our familys are strongly against abortion so we would not have their support Or help we are both working now and I went to college but because I don’t have 10 years experience I don’t get paid very much and we are not eligible for a mortgage because We are in a rent trap we can’t save properly because with the cost of private renting we can only save small amounts

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    Mute Cathal
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    Jan 22nd 2018, 8:34 PM

    @Deborah Rea: I have no idea what you are saying. Are the comma and full stop broken on your device?

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    Mute Nicholas Kelly
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    Jan 22nd 2018, 12:37 AM

    How does a company make €3 million a year in profit from managing property they don’t own to house homeless families?
    Stinks of the same stuff as the bin licence transfer to Greyhound – where is the accountability to get the best price to provide a service using public money.- screw commercial sensitivity. If they are getting money from the government then it should be fair game for public accounting.

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    Mute Mary Murphy
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    Jan 22nd 2018, 7:13 AM

    @Nicholas Kelly: …..one of the things this company does is manage these properties. For all we know 99% of the profits could come from other activities. The article is sensational but unfortunately lacks the real information necessary to make the connection the author is trying to make.

    109
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    Mute Jane
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    Jan 22nd 2018, 7:42 AM

    @Mary Murphy: profits did jump by 2.6m in 2016 so it does look a little suspicious. I’m not saying they don’t have other lines of business but…..

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    Mute Mary Murphy
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    Jan 22nd 2018, 10:31 AM

    @Jane: Bitcoin jumped as well.

    4
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    Mute Skybloo
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    Jan 22nd 2018, 2:27 PM

    @Jane:
    No it doesn’t look suspicious … the economy is improving, people expand their business so to increase profits, ie the construction industry has kicked off well again. My business did better in 2016 too … and I have nothing to do with this industry. Facts, and/or in absence of fact – benefit of doubt, instead of begrudging assumptions and demonizing would be better applied. It’s like looking in at a bitch-fest

    6
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    Mute Todd Hebert
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    Jan 22nd 2018, 12:46 AM

    Privitisation of public services should not happen, and here’s the proof.
    That’s 3 million that could have been used to house people or build affordable homes, or buy and refurbish ghost estates etc…

    232
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    Mute Dave Doyle
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    Jan 22nd 2018, 5:45 AM

    @Sandra O’Fucáif: Ireland has become a neoliberal cesspit, money matters, not people.

    144
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    Mute Pierre Lecake
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    Jan 22nd 2018, 10:53 AM

    @Sandra O’Fucáif: All private companies strive to make profit. It is their raison d’etre . There is no shame in making a profit. The article is deliberately misleading as the journo can’t quantify how much of the company’s profit comes from providing homeless services. A shopkeeper selling a homeless person a loaf of bread is profiting off the homeless. The homeless charity industry is profiting off the homeless with all the jobs they create and showing poor results for all the tax money they get from the government. Profit is not a dirty word. The real shame here is that the Sein Fein majority council has outsourced its responsibilies to a private company instead of getting council staff to carry the same functions. But then maybe its actual cheaper to get an evil profit making private company to do this work than use the incompetent , work shy Council staff.

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    Mute John O'Shea
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    Jan 22nd 2018, 12:20 AM

    Charity starts at home, and by home I mean in the CEO’s bank account.

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    Mute Denis Young
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    Jan 22nd 2018, 12:08 AM

    Nothing short of disgraceful

    215
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    Mute Derek Hackett
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    Jan 22nd 2018, 12:47 PM

    @Denis Young: what that they run a business and make money?

    5
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    Mute Nick Allen
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    Jan 22nd 2018, 12:38 AM

    A huge part of the problem in this country is that people think profit is a dirty word. Businesses must make profit to employ people in order to earn wages to pay tax which supports this country. The company provide a service which we pay for.

    125
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    Mute Ciaran Whyte
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    Jan 22nd 2018, 1:22 AM

    Don’t let the lefties hear you!

    Profit is actually a social obligation. My business has to be both sustainable and profitable so that my employees can pay their mortgages and raise their families. I have a responsibility to them. Shame on me for making a profit when I can

    105
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    Mute Himalaya Joe
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    Jan 22nd 2018, 6:41 AM

    @Ciaran Whyte: what are the two of ye on about? There’s a massive difference between a regular private company making a profit and a company whose only service is to provide shelter to vulnerable and homeless families making one. Services for vulnerable children and adults in Ireland are being increasingly commoditised and more and more of that scarce money is going to bank accounts rather than to the required service. That’s the issue. If neither of ye can understand that, perhaps try readjusting the aul moral compass that’s nearest to ye.

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    Mute Bill Clay
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    Jan 22nd 2018, 7:07 AM

    @Himalaya Joe: its a private company. What are you on about.

    28
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    Mute JustOneScoop
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    Jan 22nd 2018, 7:10 AM

    @Nick Allen: isn’t this what we pay civil servants in DCC for nick. Don’t get a job in procurement policy because you’d be awful at it

    16
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    Mute Himalaya Joe
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    Jan 22nd 2018, 7:18 AM

    @JustOneScoop: try read my comment again. The increasing involvement of private companies in the delivery of services for the vulnerable is the issue. It leads to scare money increasing profits and not being targeted where it should be.

    28
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    Mute Mary Murphy
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    Jan 22nd 2018, 7:24 AM

    @Himalaya Joe: where is the bit in the article that says the only service is providing shelter for the homeless. The article even admits we can’t be sure where the profit is coming from. For all we know they could be buying bitcoin….it is just a summation by the author that all the profit comes from this area (most likely true but still not 100% guaranteed)

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    Mute Skybloo
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    Jan 22nd 2018, 7:27 AM

    @Himalaya Joe:
    If you all read the article and didn’t fall for the sensational headline you’d find that it’s unclear how this private company made this profit – a large part of it could be from other activities … it is entitled to not feel accountable to a news app and Mr. Judgmental Joe Soap

    17
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    Mute KerryBlueMike
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    Jan 22nd 2018, 9:22 AM

    @JustOneScoop: DCC have to put up flags you know, they can’t be doing everything.

    5
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    Mute Himalaya Joe
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    Jan 22nd 2018, 11:22 AM

    @KerryBlueMike: And once more, if you read my comment you would see that my point is that this is indicative of a wider problem of the commoditisation of vulnerability; children’s services, housing services etc etc etc are becoming increasingly controlled by the private sector who are primarily motivated by profit rather than resolving social issues or supporting the vulnerable.

    9
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    Mute Jointheclubtoo
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    Jan 22nd 2018, 7:35 PM

    @Bill Clay: It’s a private company ok, but this is just middleman’s work, doing nothing productive. Cutting out the middleman usually helps both sides in any deal.

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    Mute Eoin Finnega
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    Jan 22nd 2018, 2:12 AM

    @Cathal Flood: It’s actually more dumb than that.
    “Private company makes profit – we dont know the extent of their activities so we will highlight just one of those and get the article posted asap rather than investigating to see what is actually happening.
    Therefore, we are not creating fake news merely suggesting something and allowing it to be understood as fact.”

    This one line disclaimer about the actual source of profit in the middle of the article having focused on the homeless aspect for the rest of the article means that it is missed by the majority – judging by the comments…
    “It is not clear if the entirety of R&G’s profits relate to payment it received from the council, or if it is engaged in other activities.”

    Such blatant clickbait and irresponsible “journalism”.

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    Mute Matt Connolly
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    Jan 22nd 2018, 8:00 AM

    @Eoin Finnega: doesn’t look like the journal even bothered ordering their last submitted accounts from the CRO.

    10
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    Mute TP Simms
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    Jan 22nd 2018, 8:51 AM

    @Eoin Finnega: It just goes to show…fake news works.
    There’s no evidence to say this company made all this money from the homelessness, but there’s an abundance of people who are happy to read that narrative for whatever reason.

    15
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    Mute John Power
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    Jan 22nd 2018, 1:05 AM

    An engineered problem

    48
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    Mute Seamus Balfe
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    Jan 22nd 2018, 12:27 AM

    Someone’s got to make money, fair play to them.

    45
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    Mute Kieran OKeeffe
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    Jan 22nd 2018, 1:52 AM

    Don’t have any issues with a company making profit,but assuming maybe160 room’s in total…a profit of 400 per week per room seems crazy..

    52
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    Mute Skybloo
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    Jan 22nd 2018, 7:29 AM

    @Kieran OKeeffe: there’s the problem right there … assumptions

    24
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    Mute phil
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    Jan 22nd 2018, 7:32 AM

    @Kieran OKeeffe: Yes but it says the company made that profit. It does not day the company made all of that profit on these two properties. They are more than likely involved in other projects.

    12
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    Mute Jarlath Murphy
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    Jan 22nd 2018, 5:59 AM

    Public money being siphoned off into private pockets, while the public service is being run into the ground via cuts!

    Keep the Recovery going, a great little country to do business in!

    A Republic of Opportunists!

    49
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    Mute Paul Mc
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    Jan 22nd 2018, 12:59 AM

    What would you expect in Fairness when the country is being run by greedy Fine Gael, Fianna Fail and Labour party landlords.

    69
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    Mute Ciaran Whyte
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    Jan 22nd 2018, 1:19 AM

    Government can’t solve problem.

    Private company sets up to try and address a need. Said private company makes a profit.. and now they’re ostracised

    So would it be better if they didn’t provide assistance and let the Government just waddle it it’s own mess?

    35
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    Mute Dave Doyle
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    Jan 22nd 2018, 6:07 AM

    @Ciaran Whyte: The government could solve the problem. Previous governments solved the problem years ago when the country was less able to afford to.
    Homelessness has been turned into an industry where there’s profit to be made on the backs of people’s misery. Just as being unemployed has turned into a profitable industry for selected companies. Again it’s on the backs of misery.
    To sustain profits you have to sustain the misery. And it’s the misery of people, human beings. That’s the reality. And it’s deliberate. It’s government policy to keep thousands of men, women and children in misery just so private companies can make profit.
    There is no problem with business making profit. That’s what they are set up for. They create employment, so businesses thrive and people thrive. It’s all good.
    But when a government enslaves the less well off in misery, so private companies can make profit it’s indefensible. You are commodifying human beings.
    It’s immoral. It is destroying society. It’s corrupt in the extreme.
    And to top it all, you put the blame of the misery on those who have been enslaved in the misery.

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    Mute Tony Hartigan
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    Jan 22nd 2018, 7:31 AM

    How many politicians are directly or indirectly involved with these centres ?

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    Mute Sean c
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    Jan 22nd 2018, 12:40 AM

    hahaha you couldn’t make it up.

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    Mute Mary Murphy
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    Jan 22nd 2018, 10:34 AM

    @Sean c: but seems the Journal did…..

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    Mute Mary Murphy
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    Jan 22nd 2018, 10:35 AM

    @Sean c: but the Journal did

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    Mute fitzz30
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    Jan 22nd 2018, 7:01 AM

    Sounds to me like a bit of back scratching going on

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    Mute Pat Redmond
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    Jan 22nd 2018, 9:27 AM

    If it was a charity the money would be absorbed in the CEO and senior management salaries along with defined benefit pensions for all the staff .

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    Mute Nick Drake
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    Jan 22nd 2018, 7:40 AM

    I suppose the clue is in the headline, ‘a private company’, they are entitled to make a profit. The company I work for probably make 3 times this each week alone.

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    Mute Shane Cormican
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    Jan 22nd 2018, 7:02 AM

    Now they have to rename the hotel again

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    Mute Adrian
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    Jan 22nd 2018, 7:00 AM

    Its obvious somebody’s gonna make lots of money out of it when our gov is managing it so poorly.

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    Mute Andy Lawrence Moore
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    Jan 22nd 2018, 12:03 PM

    I dunno , but theres an accountancy practice @ 11 James St Malahide which purports to trade as R&G Amdministration who recieves contributions from DCC 120’000.01 in Q3 of 2015 ??

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    Mute Cathal Flood
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    Jan 22nd 2018, 1:38 AM

    Private Company makes Profit !!
    Scandalous !!!
    Next thing people who work the poor, sick and disadvantaged will start taking home a wage !!

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    Mute Owen M
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    Jan 22nd 2018, 3:02 PM

    Profit is a great thing, without it the economy wouldnt function.

    The people who work here need houses too.

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    Mute Dave Walsh
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    Jan 22nd 2018, 8:04 AM

    Are the council not elected by the people,to serve the people.AND accountable to the people.Commercial sensitivity.3 million.stinks this…stinks…rem all these people can be removed by your vote.

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    Mute James Mc Loughlin
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    Jan 22nd 2018, 11:39 AM

    This is a joke Its no wonder the homeless situation is so bad when a hotel can say they are 3 million to the right side of profit. Is this hotel getting the lower rate of vat its a sick joke.There must be a few TDs in shares in these hotels and this is only in two hotels.What is the true figure for the rest of the hotels housing homeless people

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    Mute Censorship is modern day book burning
    Favourite Censorship is modern day book burning
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    Jan 22nd 2018, 12:20 AM

    People: “We want end to homelessness!We want end to A & E crisis! we want abortion on demand!”

    Government: “Well, public finances being what they are, without raising y’all’s taxes we can only afford to solve one of those problems, which is it?”

    People: “Eh…which one we pick?..F*ck those dole-head non VHI mother*#kers, abortion is a human right!”

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    Mute Censorship is modern day book burning
    Favourite Censorship is modern day book burning
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    Jan 22nd 2018, 12:41 AM

    @Icant Spellwell: I know mate… being satirical is-all.

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    Mute David Stapleton
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    Jan 22nd 2018, 7:36 AM

    @Censorship is modern day book burning: I didn’t know that Samuel L. Jackson commented here…

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    Mute Niall Ó Cofaigh
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    Jan 22nd 2018, 4:07 PM

    Putting people in commercial properties to tackle homelessness will always result in the commercial properties at least covering their costs and making some profits on top of this. That is what commercial properties, such as hotels do. If they did not make a profit then they would close and not be able to provide and service, public or private, and there would be consequential job losses.

    If a hotel room costs 100 a night and the people, through the elected representatives, choose to pay for that hotel room for temporary accommodation for some homeless person, then so be it – the issue is not the profits but the elected representatives who allow this happen.

    Obviously there needs to be a long term solution whereby homeless people do not need to be housed on a temporary bases in commercial hotel rooms….. but, again, it is up to the elected representatives representing you and me to come up with and implement solutions….. remember this happens because of the policies of the people we, the people of Ireland, elect to act on our behalf.

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    Mute Marian Hurley
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    Jan 22nd 2018, 6:05 PM

    The sister hotel of the Bennington Dubai?
    And the Irish Village Dubai?

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