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Former Communications Minister Denis Naughten. Leah Farrell/RollingNews.ie

Explainer: How dinners with a US telecoms millionaire cost Denis Naughten his job

Naughten resigned as Communications Minister earlier today.

DENIS NAUGHTEN SHOCKED the Dáil earlier today when he announced his resignation.

The independent TD told the chamber that “the Taoiseach does not have confidence in me” and that it forced his hand.

The news came just hours after the Taoiseach had said that he was “satisfied” with Naughten’s explanation about the controversy that has surrounded him relating to the National Broadband Plan (NDP).

The controversy stems from Naughten’s dealings with David McCourt, head of the only consortium left in the running for the NDP tender.

Naughten had previously admitted to attending a dinner with McCourt, but details of other meetings had increased pressure on the minister.

So how did we get to this point?

National Broadband Plan

The National Broadband Plan has been hit by repeated delays since it was it was first announced in 2012.

Under the plan, a tender has been sought to bring high-speed broadband to 540,000 homes and businesses in rural areas.

Eir, having already proceeded with its own rural broadband project to 300,000 premises, had been seen as the most likely winner of the tender.

Eir was one of the bidders for the tender but pulled out of the running in February, effectively stating that it was not financially viable to proceed.

Another one of the bidders, a joint submission by ESB-Vodafone, had already pulled out in September of last year.

The upshot of these two decisions was that only one bidder remained for the tender.

That bidder is a consortium led by US-based investment firm Granahan McCourt and also containing Limerick-based broadband provider Enet.

David C. McCourt is the CEO and founder of Granahan McCourt.

Irish-American investor McCourt made a fortune in the broadband industry, setting up, buying and selling multiple companies. In 2012, his net worth was estimated to be $750 million (€640 million).

David_McCourt David McCourt of Granahan McCourt. Wikimedia Wikimedia

Last week, Naughten admitted to attending a dinner in New York with David McCourt in July of this year.

He insisted that he regularly met with investors as part of his ministerial duties and suggested that the NBP was only discussed briefly.

However, following that admission, The Ireland Edition of the Times reported that the discussion between the pair was more detailed than a brief discussion.

The newspaper reported that the pair had discussed details of the bid, including its leadership, financing, internal decision-making and the impending deadline.

It was subsequently reported that minutes were taken at the meeting and that it constituted a breach of protocol.

‘Contaminated’

The revelations about Naughten’s meeting with McCourt were raised yesterday during Leaders’ Questions when Fianna Fáil leader Micheál Martin questioned what happened at the New York dinner.

Martin said that ministers should be insulated from lobbying during a tendering process and that McCourt’s dealings with the minister amounted to “canvassing” and “lobbying”.

Taoiseach Leo Varadkar defended Naughten’s attendance at the dinner but further revelations were to come.

It emerged that the minister had facilitated a lunch in the Dáil for McCourt’s daughter in April of this year and that Naughten had paid for it.

Speaking to TheJournal.ie this morning, the Taoiseach said that he was “satisfied” with Naughten’s explanations to date but added that this position could change.

“I don’t have all the information yet. I’m certainly satisfied with what he said to me last night at the meeting,” Varadkar said.

The situation all changed this afternoon, however.

Naughten addressed the Dáil and said that he was stepping down despite not being asked to do so.

“Do I wait for that decision myself, to resign, or do I wait for someone else to make that decision for me?,” Naughten said, adding that the outcome “is more about opinion polls than telephone polls.”

Naughten’s announcement clearly shocked the deputies remaining in the Dáil and he left the chamber directly afterwards.

ceann comh Ceann Comhairle Seán Ó Fearghaíl after Naughten's departure in the Dáil earlier. Oireachtas.ie Oireachtas.ie

Addressing the Dáil about an hour after Naughten’s resignation, the Taoiseach gave further details about the events that led to the minister’s departure.

Varadkar told the Dáil that he had a private meeting with Naughten last night, and was told after midnight by Naughten that he remembered he had had a private dinner with David McCourt.

He said that Minister of State Pat Breen had also met McCourt at this dinner.

Varadkar said he met with Naughten again this morning, who told him that he had at least three other private dinners with McCourt, with no officials present.

“I have no doubt that his intentions were honourable at all points but I do believe he left himself open to allegations of a conflict of interest and an inappropriate relationship with Mr. McCourt, which could have in turn brought the process into question, thus potentially jeopardising the project in its entirety,” Varadkar said.

The Taoiseach said that Education Minister Richard Bruton would be taking on Naughten’s ministerial responsibilities on a temporary basis.

Speaking on RTÉ Six One News, Naughten said that he told Varadkar about all four dinners at their meeting last night.

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    Mute steve white
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    Dec 14th 2017, 2:26 PM

    so the time spent by the SF members hearing from experts at the committee after the Ard Fheis was worthless for this committee process.

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    Mute The Risen
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    Dec 14th 2017, 2:29 PM

    @steve white: Mind you don’t get a friction burn from those straws you’re clutching.

    95
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    Mute Andy K
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    Dec 14th 2017, 2:34 PM

    @The Risen: Ah yes, the unwavering SF supporters.
    Your party has no plans for the economy or anything else? Doesnt matter!
    You party supports terrorism and praise high ranking terrorist leaders? Doesnt matter!

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    Mute The Risen
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    Dec 14th 2017, 2:38 PM

    @Andy K: My view on abortion is to the left of SFs policy, so its

    Do try to keep up, lest you look silly.

    47
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    Mute Michael Farrelly
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    Dec 14th 2017, 2:40 PM

    @The Risen: Steve makes a very relevant point.

    57
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    Mute The Risen
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    Dec 14th 2017, 2:49 PM

    @Michael Farrelly: Not really when their plans for the ‘economy or anything else’ are freely available on their website.

    39
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    Mute Brendan O'Brien
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    Dec 14th 2017, 2:51 PM

    @The Risen: Why should anyone try to ‘keep up’ with the views of some anonymous online Provophile?

    62
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    Mute Morgan Freeman
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    Dec 14th 2017, 3:13 PM

    @steve white: tough for shinners to look like they want abortion when many of their support base are religiously inclined. They’re not going to be able to square this peg so they are in filibuster mode for as long as they can so they look like they care without really caring at all. Anything to win a vote. It’s their policy on most things to be fair so at least they are consistent.

    61
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    Mute steve white
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    Dec 14th 2017, 3:16 PM

    @The Risen: they decided which way they were going to vote before the committee hearings were over.

    41
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    Mute The Risen
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    Dec 14th 2017, 3:54 PM

    @steve white: By ‘they’ do you mean the membership who got to vote on the matter via their ard feis?

    11
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    Mute Mary Loony Mc Donald
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    Dec 14th 2017, 4:10 PM

    @The Risen: yes..but why do SF bother to attend the committee meetings. They are voting as directed by ard fheis (No issue with that)…so it doesn’t matter what they hear at committee.

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    Mute John Doe
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    Dec 14th 2017, 5:14 PM

    @steve white: In fairness, so did the committee

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    Mute John Doe
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    Dec 14th 2017, 5:16 PM

    @Mary Loony Mc Donald: Presumably so they can report back information from those committee meetings?

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    Mute John Mc Donagh
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    Dec 14th 2017, 5:28 PM

    @Brendan O’Brien Perhaps it’s because they’re beholden to the fifth commandment (Thou shalt not kill)——Oh oh: It’s Sinn Fein we’re talking about!

    17
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    Mute Richard Doherty
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    Dec 14th 2017, 5:58 PM

    @Andy K: you oviously never looked up the sinn fein website sinn fein have policys on all matters your comment is not very educated

    13
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    Mute Harry Roberts
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    Dec 14th 2017, 6:09 PM

    @The Risen: typical SF. When the going gets too tough for them they run for the nearest fence. They were a waste of space on the committee.

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    Mute Dermo Adams
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    Dec 14th 2017, 6:40 PM

    @Harry Roberts: You must have been watching a different committee mate. The Sinn Fein TDs were among many of the excellent contributors there.

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    Mute Tom McHugh
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    Dec 14th 2017, 7:15 PM

    @John Doe: ah shure it’s OK, when the PC zeitgeist approve. We need to be at the vanguard of liberalist thinking.

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    Mute Tom McHugh
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    Dec 14th 2017, 7:18 PM

    @Tom McHugh: just to be clear, this is from a person who detests nationalism dressed up as republicans.

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    Mute steve white
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    Dec 14th 2017, 9:58 PM

    @The Risen: no I mean the SF members of the committee who position was frozen before the end of the committee hearings

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    Mute Shane Carroll
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    Dec 14th 2017, 2:26 PM

    This fence sitting tells me that sinn fein are no different to FG, FF and Labour. Party politics is the main obstacle to progress in this country.

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    Mute The Risen
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    Dec 14th 2017, 2:32 PM

    @Shane Carroll: Silly post. They have a clear position as a party on repeal, and on circumstances where abortion should be allowed.

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    Mute Daryl Walsh
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    Dec 14th 2017, 2:33 PM

    @Shane Carroll: The difference being that SF are respecting their members who didn’t vote for abortion on demand, which is essentially what this is. SF are also having a special Ard Fheis February, I suspect their TDs and Senators will want this issue revisited

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    Mute コナー・リンチ Conor Lynch
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    Dec 14th 2017, 3:11 PM

    @Shane Carroll: no it’s the people who validate that non-communal stance by their votes that is the true fence sitting. She would actually lose votes if she took a stand. Safer to fix potholes, get ppl a medical card and express no opinions

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    Mute コナー・リンチ Conor Lynch
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    Dec 14th 2017, 3:13 PM

    @コナー・リンチ Conor Lynch: sorry, non-comittal

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    Mute Shane Carroll
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    Dec 14th 2017, 4:09 PM

    @The Risen: silly post by you. if they have a clear position why didn’t they vote for or against. Abstaining on votes shouldn’t be an option. This is the tactic FF are using to support FG while trying to save face. The abortion issue should be a simple referendum to either bring us in line with the rest of Europe or stay as we are. Why are politicians turning it into such a devisive issue? Distraction from other issues I would say.

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    Mute Paddy
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    Dec 14th 2017, 4:47 PM

    @The Risen: not very clear when they abstain

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    Mute John Doe
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    Dec 14th 2017, 5:32 PM

    @The Risen: If they have a clear position then surely it should be easy to vote one way or the other based on that position?

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    Mute The Risen
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    Dec 14th 2017, 6:08 PM

    @John Doe: To the best of my knowledge SF have never voted on unrestricted access up till 12 weeks. On foot of that an abstention makes sense as there is no formal position.

    I’m open to correction on this.

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    Mute John Doe
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    Dec 14th 2017, 7:04 PM

    @The Risen: Makes sense I suppose

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    Mute Philip Howlin
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    Dec 14th 2017, 9:00 PM

    @The Risen: What is that position please.

    1
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    Mute Bart
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    Dec 14th 2017, 2:29 PM

    Stop complicating the issue, you either believe in murder or you don’t

    126
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    Mute Enda Rochford
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    Dec 14th 2017, 3:29 PM

    @Bart: Fake twitter accounts complicate the issue too.

    55
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    Mute Mary Loony Mc Donald
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    Dec 14th 2017, 4:10 PM

    @Bart: yes murder is a reality..happens everyday…abortion is not murder though.

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    Mute Deborah Behan
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    Dec 14th 2017, 4:17 PM

    @Bart: if you have evidence of a murder please call the Gardai.

    23
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    Mute Fiona deFreyne
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    Dec 14th 2017, 2:25 PM

    It would not be practicable to limit abortion in the first 12 weeks to cases of rape and incest. It would not be possible to establish a prima facile case within that very tight time scale.

    If there is to be abortion , better that the abortion be at the earliest possible point in time. That will be facilitated by unrestricted access up to a point in time and progressive restrictions at a later point in time.

    The first step is to vote to retain or to repeal the 8th Amendment. Unless or until repeal happens, everything else is hypothetical.

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    Mute Chris Kirk
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    Dec 14th 2017, 3:02 PM

    I am beginning to think that a vote for Sinn Fein is the same as taking a scam phone call, they want your vote but abstain on everything else.

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    Mute Franklin Roosevelt
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    Dec 14th 2017, 2:36 PM

    Oh God, another centrist party in Ireland, Labour needed some company, didn’t they?

    Sinn Féin need to cop on or they’ll be stuck on 14% support for eternity

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    Mute Honeybadger197
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    Dec 14th 2017, 2:45 PM

    @Franklin Roosevelt: *13.8%.

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    Mute Franklin Roosevelt
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    Dec 14th 2017, 4:07 PM

    @Honeybadger197: they had 0% 20 years ago.

    FFG had more than 2/3 of the vote 20 years ago.

    They now have less than 1/2.

    The only reason their coalition exists is because of a few easily bought off Independents.

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    Mute Honeybadger197
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    Dec 14th 2017, 4:14 PM

    @Franklin Roosevelt: Dry your eyes love.

    10
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    Mute Franklin Roosevelt
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    Dec 14th 2017, 4:24 PM

    Honeybadger leading a political rally:

    WHAT DO WE WANT?
    Incremental political change!
    WHEN DO WE WANT IT?
    As little as possible, as late as possible!

    And a review of your political rally:
    Just got back from the centrist rally. Amazing turnout. Thousands of people holding hands and chanting “Better things aren’t possible!”

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    Mute Honeybadger197
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    Dec 14th 2017, 4:34 PM

    @Franklin Roosevelt: You must be incredibly bored, comrade. :)

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    Mute David Knight
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    Dec 14th 2017, 2:24 PM

    Abortion on demand may be a step too far for this country as this is still such an emotive subject. Perhaps we should go for limited and controlled abortion rather than risk the whole thing being rejected by going for too much.

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    Mute Fiona deFreyne
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    Dec 14th 2017, 2:27 PM

    @David Knight: only those pregnant women and pregant girls who are to young, too dependent, too poor or legally incapacitated from travel are affected since all others can travel to the UK for an abortion.

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    Mute Kate Mooney
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    Dec 14th 2017, 2:51 PM

    @David Knight: it is impossible to legislate for limited abortions in cases of rape or incest. There are also thousands of women taking abortion pills at home. Abortions prior to 12 weeks happen every day here. All this would do would be to ensure those women have medical supervision and support, and don’t face 14 years in prison. We are beyond the point of “keeping Ireland abortion free”. This proposal is merely playing catch up with reality. Regardless of what people’s opinions are, it is happening and women should be protected and supported in their health and reproductive choices.

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    Mute WynnnerZ
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    Dec 14th 2017, 4:00 PM

    @David Knight: the majority of terminations are done in the first trimester, it’s not like FFA which usually get picked up on 16 weeks plus, it’s not like someone who is 24 weeks pregnant just decided to have a termination for the crack of it, if you find out your pregnant it’s at the 6 to 8 week stage, you can’t continue you can take a pill by 10 weeks your not pregnant anymore.

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    Mute Fran Lonergan
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    Dec 14th 2017, 4:21 PM

    @WynnnerZ:

    It’s so easy and clinical “you can take a pill by 10 weeks your not pregnant anymore”.

    More simple, you could exercise adult responsibility and not be pregnant at all.

    17
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    Mute The Risen
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    Dec 14th 2017, 6:10 PM

    @Fran Lonergan: Are you including rape victims in your ‘adult responsibility’ comment. How about people who practised adult responsibility by using contraception, but it fails?

    18
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    Mute Felicity Hensen
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    Dec 14th 2017, 6:28 PM

    @Fran Lonergan: Shall I assume you’ve presented yourself as available for any and all clinical trials relating to the male contraceptive pill. And that you will be gifting all male family members, friends, colleagues, etc condoms for Christmas and subsequent birthdays, ensuring all persons “exercise adult responsibility”.

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    Mute Fran Lonergan
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    Dec 14th 2017, 8:26 PM

    @Felicity Hensen:

    Why would I, and why should take on resposibility for others Felicity? I don’t expect others to absolve me of my responsilities.

    We are all responsible for our actions, or should be, I know that has become unfashionable.

    Strange though that in all my years I have never been party to a “crisis pregnancy”. It is not difficult.

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    Mute Felicity Hensen
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    Dec 14th 2017, 9:06 PM

    @Fran Lonergan: If you feel that you should not take on such responsibility, why then do you feel you have the authority to exercise such control over other people’s lives. Should a person choose to have an abortion, they take that responsibility. Not you. Not me. Nor anyone else. That person. And whatever their need or reason to do so is also theirs. To the best of your knowledge you may not have “been party to a “crisis pregnancy”". And you are also not party to the myriad reasons a person may need to avail of abortion services. Your path is yours to travel. You want to prevent abortions, help prevent crisis pregnancies. And if you can’t or won’t do that, at least stop impeding those who take the entire picture into account.

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    Mute Fran Lonergan
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    Dec 14th 2017, 9:22 PM

    @Felicity Hensen:

    But the problem is, they haven’t taken control of their own body. Quite the opposite given in to carnal desire without exercising responsibility and then deciding to destroy the other body they have created.

    There is very little need for “crisis pregnancies” and close to no reasons for exercising the selfish decision to kill that which is regarded as a crisis.

    It is not difficult not to get pregnant.

    “To the best of your knowledge you may not have “been party to a “crisis pregnancy” No, not to the best of my knowledge, to my absolute knowledge.

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    Mute Fran Lonergan
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    Dec 14th 2017, 9:33 PM

    @The Risen:

    What do you reckon is the percentage of abortions due to rape, Risen? An overused straw man.

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    Mute Felicity Hensen
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    Dec 15th 2017, 5:08 AM

    @Fran Lonergan: Your unwillingness to help contribute to another form of contraception, and your use of giving “in to carnal desire without exercising responsibility”, shows that you have no interest in understanding that pregnancy is not a simple black & white situation. And that your true aim is to continue asserting authority over those people you deem to have strayed from a path you view as acceptable. Actually, my point still stands and it is not to your “absolute knowledge”. Unless you have been engaging in utter dominion over the person or people with whom you’ve had sexual encounters.

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    Mute Fran Lonergan
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    Dec 15th 2017, 3:03 PM

    @Felicity Hensen:

    I’m afraid Felicity, it is a black and white issue. It is that simple, if you don’t want to be pregnant, don’t get pregnant.

    Using over the top language doesn’t make your argument any more powerful or coherent. You are just repeating nonsense.

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    Mute The Risen
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    Dec 14th 2017, 2:28 PM

    Hopefully if SF are having a special ard feis to select a new President, they can revisit the issue in light of the sterling work done by the committee and discuss whether or not to support unrestricted access till 12 weeks.

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    Mute steve white
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    Dec 14th 2017, 2:55 PM

    @The Risen: bit late now, one hopes this committee will effect the SF thought process in future, its partly the govs fault for delaying for 20-30 years and then slightly rushing things.

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    Mute John003
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    Dec 14th 2017, 3:14 PM

    @The Risen: Your devotion to SF is unconditional and tireless on the journal….If only other political parties had people of faith like you….

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    Mute The Risen
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    Dec 14th 2017, 6:11 PM

    @John003: My position on abortion is not the same as SFs position, hence my comment.

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    Mute Hurt Stoogie
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    Dec 14th 2017, 7:14 PM

    @The Risen: selective

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    Mute John003
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    Dec 14th 2017, 2:32 PM

    SF don’t want to offend rural voters in places like Leitrim…However will that mean urban voters in South Dublin will be offended….They should impose a party policy like they always do….

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    Mute The Risen
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    Dec 14th 2017, 2:35 PM

    @John003: They have a policy on repeal and on the circumstances on which abortion should be permitted john. And the article is about that policy being respected by its TDs on the committee.

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    Mute Paddy
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    Dec 14th 2017, 4:49 PM

    @The Risen: what’s the parties policy on bullying?

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    Mute Darren Bates
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    Dec 14th 2017, 2:39 PM

    Anti-choicers abstaining from abortion vote shock horror. Amazing how even a Fianna Fail deputy went in with an open mind but our SF friends continue to appease the bible bashers whose votes they count on up north.

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    Mute The Risen
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    Dec 14th 2017, 2:50 PM

    @Darren Bates: SF support abortion in limited circumstances and a repeal of the 8th.

    Have another read of your comment in that context.

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    Mute Deborah Behan
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    Dec 14th 2017, 4:19 PM

    @The Risen: can SF also furnish the test that will show us a woman/girl has been raped?

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    Mute John Doe
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    Dec 14th 2017, 5:58 PM

    @Darren Bates: “Anti-choicers”, “bible bashers”. Sounds like a bit of open mindedness would do yourself some good also

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    Mute The Risen
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    Dec 14th 2017, 6:26 PM

    @Deborah Behan: Deborah, I personally think that it’s unworkable. Now that 3 SF TDs have heard as much from many different contributors at the committee, I’m hoping they will articulate that to others in their party and move to support the recommendation for 12 weeks unrestricted access.

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    Mute David On Tour
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    Dec 14th 2017, 3:12 PM

    SF unable to support a policy that Luxembourg have had since 1978. Just too radical.

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    Mute Mr Jerry Curtin
    Favourite Mr Jerry Curtin
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    Dec 14th 2017, 3:03 PM

    There goes my Sinn Fein membership, I had high hopes.

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    Mute Franklin Roosevelt
    Favourite Franklin Roosevelt
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    Dec 14th 2017, 4:39 PM

    @Mr Jerry Curtin: good idea, throw you membership card in the bin, stay at home, don’t vote.

    Let FFG maintain their duopoly coalition.

    Maybe we can try for abortion again in 2080?

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    Mute Don Alfredo
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    Dec 14th 2017, 2:27 PM

    “as it would likely require proof of an assault”

    Obviously, otherwise anyone could just claim their unwanted pregnancy was result of assault.

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    Mute Michael Farrelly
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    Dec 14th 2017, 2:41 PM

    @Don Alfredo: yeah, like they would do that

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    Mute lavbeer
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    Dec 14th 2017, 3:51 PM

    To sum that article up – SF impose the whip and FF / FG don’t !!!

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    Mute M Bowe
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    Dec 14th 2017, 4:27 PM

    @lavbeer: an Ard fheis resolution is a party wide democratic policy and not a party whip decision.

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    Mute lavbeer
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    Dec 14th 2017, 4:35 PM

    @M Bowe: I know. And it is unusual for FF or FG not to use the whip but in this case the correct decision. SF may well have issues with Peadar Tobin who I find to be a positive TD for SF who generally talks aloe if sense.

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    Mute Tim Brennan
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    Dec 14th 2017, 7:32 PM

    Sinn Fein know it all sniping from the sidelines where they will remain forever with the help of a perceptive electorate

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