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File photo Sasko Lazarov/RollingNews.ie

'Livelihoods on the line': Irish contractors affected by Carillion collapse fear they won't be paid

The future of a number of schools was cast into doubt after the company went into liquidation.

SUBCONTRACTORS WORKING ON schools impacted by the collapse of construction firm Carillion have expressed concern they won’t get paid.

Last week it emerged that work had stalled on a number of schools after the UK-based firm went bust, with debts of £1.5 billion (about €1.7 billion).

Carillion was part of a consortium, Inspired Spaces, hired to build five schools and one further education college in Ireland.

The affected school buildings are in Carlow, Meath, Wexford and Wicklow. A number of contractors have expressed concerns about not getting paid as a result of the collapse.

A director of a company contracted to carry out work on two of the schools told TheJournal.ie: “We did work for both the Wexford and Wicklow schools amounting to about €10,000. We did the work last July and only partially received payment this week on one part of the project, but most of it is still outstanding.

It is very difficult for smaller businesses, like our own, to carry such amounts over for that length of time and we are still none the wiser as to whether we will be paid the full amount.

“Some businesses would be bigger than ours and have done more substantial works, while others could have invoices a lot smaller than ours, but it is difficult for any Irish business who have to manage a cash flow.”

The director said their company was contracted by another contractor and were unaware that Carillion was involved.

Nothing was ever flagged that the Carillion construction company was involved in the project and that it was in difficulties.

The director said it’s “worrying” that Carillion was awarded a contract for “important State projects” despite its financial difficulties.

“As a result, Irish businesses are now left in limbo unaware of whether they will be paid or not. These schools are State-owned and Irish businesses should be given clarity by the government as to where we stand.

“While there are rightly concerns about whether these schools will open, there are also many Irish businesses that are impacted by this too.”

Meath TD Thomas Byrne said subcontractors and local businesses in Kells have also been “left short numerous times by contractors and other subcontractors above them” and “are worried that this will become a major problem for them with Carillion going into liquidation”.

It’s understood that some subcontractors who haven’t been paid have walked off various sites.

Carillion, alongside the Netherlands-headquartered Dutch Infrastructure Fund (DIF), was hired under a Public Private Partnership (PPP) deal reached by the Department of Education and Skills and the National Development Finance Agency.

Yesterday, the UK’s Financial Reporting Council said it had opened an investigation into KPMG’s auditing of Carillion’s accounts from 2014 to 2017.

‘Livelihoods at stake’

One of the affected schools, Coláiste Ráithín in Bray in Co Wicklow, was due to receive the keys to its new building last week, after numerous delays. However, the Carillion collapse has pushed back the school’s opening once again.

A meeting of staff, parents, students and other stakeholders took place in Bray last night.

Speaking to TheJournal.ie, Aileen O’Reilly, chair of the school’s parents committee, said subcontractors not getting paid is “a huge issue”, adding: “Families and companies’ livelihoods could be on the line.”

O’Reilly said some parents have been campaigning for a new school for over 20 years and are “heartbroken” by recent developments.

She said parents understand the situation is complicated, given the numerous parties involved, but called on the government to intervene so the school can be opened while talks about its future maintenance continue.

They intervened for the banks, God knows. We’re just not going to sit down and take it.

O’Reilly said it’s “hard to swallow” that a brand new school is “only a mile up the road and can’t be used, while the children are squished in like sardines in substandard buildings, just hanging on”.

She said there are overcrowding issues on the current premises, which includes a number of prefabs, as well as heating and dampness issues, no wheelchair accessibility and “no sport facilities, no library, no canteen”.

“My daughter said it was two degrees in her English class last week, all the students had their coats on,” she noted.

O’Reilly said “pitiful” lockers for all 67 first year students are located in the same corridor, creating a fire hazard. “It’d be funny if it wasn’t so serious, all of them climbing over each other to get to their lockers,” she stated.

‘No end in sight’ 

Principal Gearóid Ó Ciaráin told us the opening date for the school has been pushed back numerous times.

“The original date being mentioned last May was late August to move into the new building. We thought we’d be in for the new school term. Then it was pushed back to November, then December, then January, and now things are up in the air.”

Ó Ciaráin said the current building is “very run down” and lacking facilities for Home Economics and sports.

The school enrolled a third first year class for the current academic year (instead of the usual two) as it thought it would be in the new building. However, as that hasn’t materialised, the school is working at maximum capacity (270 pupils) and cannot take in any new students.

carill Carillion PLC offices in Wolverhampton Aaron Chown / PA Wire/PA Images Aaron Chown / PA Wire/PA Images / PA Wire/PA Images

“We took on extra classes and subjects on the assumption we’d be in the new building, we had to start planning last April so we could get teachers. We were planning in terms of what we could do in the new building.”

Ó Ciaráin said the current building opened in 1991 and four years later the then Education Minister Mary O’Rourke gave the then Bray VEC permission to identify a new site so the school building could be upgraded.

He said he and other shareholders are “very disappointed in how things have worked out”, adding that the situation has been ”very disruptive for the present academic year”.

“It’s worse when we don’t see an end in sight.”

Liquidation

When asked about the situation, a spokesperson for the Department of Education and Skills said the department, the NDFA and DIF “are all working to achieve completion and handover of all buildings as quickly as possible”.

“In accordance with international best practice, the PPP contract includes detailed provisions that apply in the event of the liquidation of a consortium member, or an entity under the contract, to ensure that the project proceeds to completion.

Subcontractors on the project are employed, either directly or through other subcontractors, by the PPP consortium, Inspired Spaces. It is a matter for all subcontractors to agree terms and conditions and a schedule of payments with their direct employer.

“The schools will be paid for by way of monthly Unitary Charge payments, and these will not commence until the schools are fully complete.”

Speaking in the Dáil last week, Education Minister Richard Bruton said: “There should not be significant delays in the execution of these projects given that they are 90% built … It should be mentioned that not only are the projects 90% built, but the State has not made any payment beyond a small element of site cost.

The only way in which the value to the developer can be obtained is if the State issues the licences. The State is in a relatively strong position.

“The NDFA is dealing with this issue and is determined to ensure that there will be no disruption to the work.”

The affected schools are:

  • Tyndall College Campus in Carlow, which will consist of a development that will provide accommodation for over 2,000 post-primary school and Further Institute of Education students
  • Eureka Secondary School in Kells, Co Meath – the project involves the replacement of the post-primary school and will provide 800 pupil places
  • Loreto College in Wexford, where the secondary school will provide 900 pupil places
  • Coláiste Ráithín in Bray in Co Wicklow, which is to be replaced with a new building that can cater for 450 pupils
  • St Philomena’s National School in Bray, where 24 classrooms in the school are to be replaced (both Coláiste Ráithín and St Philomena’s NS will be constructed on a single new site in Bray)

A spokesperson for the NDFA told TheJournal.ie: “The estimated capital value of this contract is circa €100 million. To date, the State has made a payment of €4 million in respect of off-site works. The State is not obliged to make any further payment until the full works and services set out under the contract are being satisfactorily delivered for each school.

“Under the terms of the PPP contract, in the case of liquidation of a consortium member, or an entity under the contract, the PPP consortium’s funders and remaining shareholders are required to intervene and implement rectification measures to ensure the project is completed to the satisfaction of the State. Discussions between the parties to agree these measures are in progress.

In the event that these parties fail to reach agreement, the PPP consortium’s funders and remaining shareholders are obliged to determine alternative arrangements. The State has no exposure to any additional costs that may arise from this process.

An email sent from the Department of Education and Skills to affected schools, and seen by TheJournal.ie, states: “We recognize [sic] that this is a difficult and frustrating situation for you all and for everyone who wants to see the construction of these facilities concluded, in particular the school staff, students and their parents…

“We are seeking to ensure that the long-term interests and contractual rights of your schools and the State are protected. For example, it is essential that DIF ensures that the statutory building control inspection and certification process is correctly completed before the buildings are occupied.”

The email adds that “every effort is being made to minimise the impact of the situation on the opening of your schools”.

Read: ‘Alarm’ and frustration as newly built Irish schools stalled by Carillion collapse

Read: Most Irish university graduates are employed in Dublin and Cork

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23 Comments
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    Mute jim ahh jim ahh jim
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    Nov 23rd 2012, 8:10 AM

    Sinn Feins recent move to the moral high ground in all events is amusing.

    Poacher wearing gamekeepers clothes, but still a poacher !

    113
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    Mute DaffodilDaze
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    Nov 23rd 2012, 9:23 AM

    Lol. I remember being called a fuc&ing marxist in the 80′s by a FG TD, when I spoke out for abortion laws that reflected certain realities like the X case. Like most SF’ers I’m not in favour of on demand abortion, though quite a vocal and large group in the party are. The party position has been the same for a very long time and it is just as divisive internally as it is in wider society.

    On a lighter note I was stopped twice on the drive home from the meeting by the Guards, the same Guards and the car searched both times. One of them as much as apologized for it but I guess you can’t have reckless radicals trying to damage FG’s church based voter base.

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    Mute Kevin Smyth
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    Nov 23rd 2012, 9:35 AM

    I find it hard to take Sinn Fein seriously, as a ‘legitimate political party’, BUT, I’m still waiting on FG and Labour to prove that my view of all parties, as showers of power-hungry and greedy gombeen gangsters is ill founded. Please prove me wrong Inda/ Eamo!

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    Mute Cal1 Mooney
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    Nov 23rd 2012, 10:02 AM

    Kevin, I am afraid you will be waiting a long time for FFG/Labour to do the right thing… Don’t hold your breath.

    39
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    Mute DaffodilDaze
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    Nov 23rd 2012, 10:05 AM

    Kevin. Why would FG start doing the right thing at this stage. You can’t teach an old dog new tricks.

    36
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    Mute Kevin Smyth
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    Nov 23rd 2012, 10:37 AM

    At the risk of anyone taking me up the wrong way, I’m no FG supporter and I’m disillusioned with the labour party these days. However, in the interests of this country, I would like to see them get their collective act together. Otherwise we might see FF back in power. One cannot underestimate the general public.

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    Mute Richard Lennon
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    Nov 23rd 2012, 11:51 AM

    #Gary Fitzgerald,well done Gary your living the dream.Have a pint on me.

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    Mute Ireland for Change
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    Nov 23rd 2012, 8:23 AM

    Sinn Fein bashing once again. About the only ones calling for the government to be held responsible for their suppressive actions.

    110
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    Mute Richard Lennon
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    Nov 23rd 2012, 8:39 AM

    The sooner Sinn Fein are runing the country the better and then the green shoots of recovery will begin.

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    Mute Declan Cotter
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    Nov 23rd 2012, 9:43 AM

    Complete insanity!!!

    28
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    Mute Ryan oneill
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    Nov 23rd 2012, 9:48 AM

    Insanity is paying bondholders billions that we don’t need to. BILLIONS more will follow, 16.9bn payment in march is it?! This is what’s crippling the country and will ultimately be FG downfall esp since there will never be a deal on bank debt. BILLIONS! That’s lots of 00000000000000000000000′s

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    Mute DaffodilDaze
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    Nov 23rd 2012, 9:55 AM

    Ryan. Don’t forget to remember that brutal John Bruton called for the Irish people to forgive the bankers and politicians for their crimes and sins, before anyone is held to account or made even pay a token punishment. John will be getting a lot of hampers from failed and crooked bankers and politicians this year. The likes of him really believe that their little golden circle is all that matters and that the rest of us should happily sacrifice our futures to protect them. John will get his big pay cheques and next big job irregardless, he doesn’t have to be a knob about it though.

    36
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    Mute Ryan oneill
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    Nov 23rd 2012, 10:09 AM

    Agree daffodil all the while sending us postcards from Europe. The dirt goes deeper with fine geal all the way on the gravey train to Europe selling us out to bankers as they go. This will not end up good

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    Mute Patrick Lyons
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    Nov 23rd 2012, 11:36 AM

    ‘Shoots’ good choice of word.

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    Mute Eoin Ó Nialláin
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    Nov 23rd 2012, 9:18 AM

    Have to say I agree with Caoimhghín Ó Caoláin here. This smacks of the typical kite flying this Government seem addicted to doing. Pathetic! It’s time to publish the full report so the people can make their minds up on the issue.

    79
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    Mute Jim Devance
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    Nov 23rd 2012, 9:33 AM

    It’s slightly worrying that Sinn Fein are the only party that are handling this correctly.

    As much as it pains me to consider them, all other parties have let me down consistently in the past few years. Right now I would be compelled to vote for them if there was an election in the morning.

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    Mute snooch
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    Nov 23rd 2012, 9:36 AM

    It’s easy to be seen to handle something correctly when your actions/words have no impact whatsoever on the situation.

    48
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    Mute DaffodilDaze
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    Nov 23rd 2012, 9:36 AM

    It is worrying that people still consider FF/FG to be viable options given their consistent failures and corruption over 90 years.

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    Mute DaffodilDaze
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    Nov 23rd 2012, 9:43 AM

    Just because you are not in power does not mean you can not influence the debate. Look at the amount of councils across the country that have passed SF motions backing the right to Gay marriage. That changes public awareness, develops support for a position. Belfast, Dublin and Cork all backed it, all to massive news coverage and public awareness.

    Just because you are not in the driving seat doesn’t mean that you can make a difference, just get off your bum and get stuck in for what you believe in.

    49
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    Mute snooch
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    Nov 23rd 2012, 9:50 AM

    Is it influencing things in a real way thigh or just providing populist soundbites on contentious issues? Genuine question.

    I do feel that if abortion wasn’t so topical these days all we would hear the SF hierarchy banging on about is through terrible awful atrocity that was the ruling before the children’s referendum.

    Of course there’s a need for opposition, but only when viable real alternatives are proposed and not just nit picking the issues of the week.

    SF are essentially waiting for FG to f*ck up as opposed to proposing real alternatives. (ps I don’t see the alternative budget as a real alternative)

    19
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    Mute M Bowe
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    Nov 23rd 2012, 9:52 AM

    And it is up to the electorate to put some effect behind those words. The crowd in governent now have shown umpteen times their words mean nothing.

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    Mute snooch
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    Nov 23rd 2012, 9:55 AM

    I completely agree M, I just really don’t see alternatives. Honesty from all corners would go a very long way

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    Mute DaffodilDaze
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    Nov 23rd 2012, 10:00 AM

    They were calling for things like this when it wasn’t popular, quiet the opposite in fact. They were out protesting in the 60′s against the Chattel law, where women were viewed legally as the property of their husbands, from every pulpit they condemned, called enemies of God and the family by FG and FF.

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    Mute snooch
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    Nov 23rd 2012, 10:08 AM

    I’m aware of that daffodil. I have a couple of mates in ogra an have seen them regularly over the years protesting about abortion. That was just an example I used that I hoped would show the lack of innovation at the moment from the opposition (not just SF). It’s the whole system, it’s set up to promote bickering and nit picking without innovation or alternatives

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    Mute DaffodilDaze
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    Nov 23rd 2012, 10:19 AM

    There are many in SF that want abortion on demand, ie widely available, they are still in the minority in SF. Most people in the party though are in favour of relaxing the law, clearing it for issues around the X case. SF have had the same position on this for a very long time, the party called for X case judgement to be legislated for in 92.

    Certainly the Leinster hse system needs to be radically overhauled, made more transparent and where opposition members have powers and responsibility that they are accountable for, but can make a positive impact as well. Govt.’s here are obsessed with centralizing and controlling more power. That leads to ossification of Govt.

    19
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    Mute Alan Kenny
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    Nov 23rd 2012, 10:21 AM

    I agree, the other lot or toss pots had their chance, I’m not SF fan at all but, what’s the worst they can do :(

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    Mute michael o'toole
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    Nov 23rd 2012, 1:12 PM

    @ DaffodilDaze:
    ” It is worrying that people still consider FF/FG to be viable options ….”

    did you forget Labour ?

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    Mute Andrew Corcoran
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    Nov 23rd 2012, 9:26 AM

    FF, FG and Lab. 90 years running (should that be ruining) the country and they still can’t get it right

    53
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    Mute Kevin Smyth
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    Nov 23rd 2012, 9:40 AM

    Yes, but are they really ‘trying’ to get it right? I think not. Nice house, pension/s and your face on the Telly! Government jets, limos and fancy hotels. It’s tough going for these empty vessels who lack any ideas or imagination. Just going through the motions hoping the economy can sort itself out. Thinkings hard.

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    Mute Noel Burke
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    Nov 23rd 2012, 10:31 AM

    I am not very happy with myself now for being one of the people, who actually voted for this new style Government , a Government that promised to be different, they were going to show leadership. Why are they dragging their feet on this issue, just deal with it. We the voting public made a decision 20 years ago and still the matter hasn’t been deal with.Hope the Government are not using this unfortunate case to keep the public’s foscus away from this upcoming budget. nb

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    Mute SunnyDayToday
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    Nov 23rd 2012, 8:49 AM

    It is disgraceful, how is it not??

    39
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    Mute werejammin
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    Nov 23rd 2012, 10:25 AM

    Kite flying a report that was used as an excuse to vote against legislating for the x case back in april, legislation that the supreme court directed should have been brought in 20 years ago. These guys have been cute hoor politicians for so long that they’re no longer capable of realising how cretinous and low this looks.

    37
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    Mute Emily Elephant
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    Nov 23rd 2012, 11:53 AM

    The Supreme Court didn’t say that. It said that it was not illegal for a woman to have an abortion if her life was in danger, including from suicide. It does not need to be legislated.

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    Mute Charly Julienne
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    Nov 23rd 2012, 10:25 AM

    What was the reason given for not publishing the report as soon as it was received?

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    Mute Richard Lennon
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    Nov 23rd 2012, 10:58 AM

    Just taking a break from work to tell ye all that I will be voting for Sinn Fein from now on,FF,FG and Labour are useless.

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    Mute Garry Fitzgerald
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    Nov 23rd 2012, 11:08 AM

    Good man Richard. They’ll be able to give you a couple of voting cards in the bar where you work at the next election but register anyone because that will give you one more.

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    Mute Garry Fitzgerald
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    Nov 23rd 2012, 10:39 AM

    How many of you Sinn Feinn folk are holding down jobs and posting while at work or are you all on Social Welfare?

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    Mute Kerry Blake
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    Nov 23rd 2012, 10:46 AM

    I’m not a SF supporter Garry but I just have to ask are you posting from work?

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    Mute Seán Ó Briain
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    Nov 23rd 2012, 10:47 AM

    Ah yes – because ad hominem attacks on the electorate is the basis for an intelligent discussion. Do you have anything of substance to add to the conversation?

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    Mute norman hunter
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    Nov 23rd 2012, 10:47 AM

    @Garry could ask you the same question,but seeing as it’s none of my business i don’t want to know.I assume you are familiar with the concept of “breaks” and shiftwork.

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    Mute Ryan oneill
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    Nov 23rd 2012, 10:48 AM

    ^^^^^
    There’s the problem with the country. Party before people. I presume you posted that from your constituency office!

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    Mute DaffodilDaze
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    Nov 23rd 2012, 10:52 AM

    Garry. I’m reaching out across the web to give you a bear hug. Stop being such an angry old goat, you’ll give your self a stroke.

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    Mute Garry Fitzgerald
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    Nov 23rd 2012, 11:01 AM

    I’m sitting here in the Isle of Mann having a morning coffee overlooking the sea and a golf course. My total tax rate is twenty per cent and of course the Health Service is free. Now what was that you were saying about hugs and work breaks and Sinn Fein?

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    Mute DaffodilDaze
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    Nov 23rd 2012, 11:13 AM

    Gary, You really are a bitter, angry man. Look at that Sunshine, your imaginary golf course in the Isle of Man and thank God for a new day and a fresh start.

    17
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    Mute snooch
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    Nov 23rd 2012, 12:41 PM

    ah Gary do you not know that most of the commenters here are ‘not SF supporters but will give them a chance in the next election’

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    Mute ITS Student
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    Nov 23rd 2012, 9:49 PM

    That is their democratic right Snooch – people are entitled to vote for whoever they want. You on the other hand are a dictator.

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    Mute Sean McNally
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    Nov 23rd 2012, 11:20 PM

    But I thought SF weren’t into the ‘politics of condemnation’?

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