Minister of State for Trade and Commerce John McGuinness has intervened in a bitter dispute over unpaid building subcontractors at an exclusive housing estate in Kilkenny which has gone into receivership.
The Minister yesterday visited the men, who claim they are owed at least €750,000, to discuss their plight and to "explore ways" they might recover some of the money.
Last month the gated Ardilea development on the Castlecomer Road went into receivership when the developer William Phelan & Sons ran out of money. Some of the 64 houses and apartments, which cost between €270,000 and €870,000, had already been sold and are occupied.
The ACC Bank appointed accountant Declan Taite of Dublin firm Farrell Grant Sparks as receiver. Mr Taite said last month that he "intends to complete out the development in an expeditious manner and close all contracted sales as soon as is practically possible". Some 28 people have signed contracts to buy homes in the second phase of the development, which has not yet been completed.
Subcontractor Shane Carroll said his firm was owed €76,000 and they had equipment and materials on the site worth €15,000.
Mr Carroll said "ACC Bank will come out of this unscathed and poor lads like us will suffer". David Power, a young plasterer, is owed €54,000 which has forced him "to abandon plans" to build his own home.
Seán Holden, who runs a family business, said he was owed €10,000 and had "laid off four people directly as a result" - having already lost €34,000 when other developers in Tipperary had defaulted. Mr Holden said "ACC were caught napping".
Following their meeting with the Minister, the men have agreed to suspend their protest pending a meeting with the receiver. The Irish Timeshas learned that the receiver will meet with the subcontractors in Kilkenny next week.
However, it is understood that there will not be funds to pay them and the ACC Bank will be the only creditor to recover any debts.
The subcontractors have been protesting outside the estate since last Tuesday. On Thursday evening some were issued with summonses by Dublin legal firm Matheson Ormsby Prentice on behalf of the receiver, who yesterday sought a High Court injunction to halt the protest.
