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Explainer: What is happening with Priory Hall?

What’s it costing us? Why isn’t it sorted? Was there no insurance? Where is the builder? All your questions, answered.

PRIORY HALL HAS drifted in and out of mainstream news coverage for the past two years.

An emblem of the boom-and-bust of Ireland’s property market, the Donaghmede complex tells a complicated story of regulation (or lack thereof), intertwined with a mortgage arrears problem and, devastatingly, a suicide crisis.

Much has been written in the past week about the heartbreaking death of Fiachra Daly, a father-of-two who took his own life, an action his partner attributes to the stresses of not being able to provide a safe home for his family.

Yesterday, the Minister with responsibility, Phil Hogan, gave the strongest indication that he would resolve the issue, stating for the first time that demolition was an option.

But how did we get to this point? TheJournal.ie explains the situation.

When was Priory Hall built?

Developer and former IRA hunger striker Tom McFeely ‘completed’ the 189-apartment complex in 2007. It was the height of the boom and the site were nestled in amongst a number of other new developments, including the much-talked about Belmayne.

That particular housing estate – which was at one time visited by former Premier League footballer Jamie Redknapp – kept its snazzy boarding surrounding it for years, advertising stylish living quarters and a lavish Celtic Tiger lifestyle. That, obviously, is not the reality.

First-time buyers, newly-married couples and young professionals were amongst the buyers. So too were Dublin City Council.

When did the problems begin?

Straight away for most but they didn’t seem that sinister. A flooded car park was the start. Residents stopped parking their vehicles in the underground area in 2007 when, one morning, they discovered their cars floating out of the space.

Dampness in the homes was also becoming problematic and there was shoddy workmanship on display in every corner.

TheJournal.ie visited the site in April 2012 and noted at that stage that the “the place looks closer to demolition than repair”.

image

An example of some of the area pre-evacuation. (Image: Sinéad O’Carroll/TheJournal.ie)

What is the biggest problem?

The entire complex is a fire hazard. A really, really dangerous one. Back in October 2011 when the residents were evacuated, Justice Nicholas Kearns asked that a fire engine remain at the development in case a blaze took hold as the residents moved out. The homeowners, however, had been living in the same properties for years at that stage.

Where does Dublin City Council come into all this?

Dublin City Council bought 26 of the apartments for social housing. It evacuated its tenants much earlier – in December 2009 – because of the safety concerns. As landlords, they had a duty to protect those living in Priory Hall.

To protect the others, they ordered McFeely to carry out remedial work. However, he said he could not afford the €7.3 million bill. The stand-off led to the court-ordered evacuation of all 256 residents on the 17 October 2011.

Do properties not have to be signed off on?

This is where Ireland’s weak system of self-regulation comes into play. The apartments came with all the requisite sign-offs from engineers, fire safety officers and surveyors, as well as the necessary documentation.

Fire plans are signed off on at planning/drawing stages so nobody actually inspects the building after it is complete – and as unbelievable as that seems, it is legally fine.

Because regulations allow for the certification of work without a local authority representative actually being on site, much of the work done was never inspected. It is up to the builder – and, often, the builder alone – to ensure all the materials used are up to standard. Some would have done this, others would not have. This development fell into the latter category.

And because the sanctions are so minor for any deviants, there wasn’t any big incentive to stay in line with what the light-touch regulation called for.

As homeowners will know, the lenders giving out the mortgages are also required to send a surveyor but during those busy boom years, that surveyor was more akin to a valuer. His or her job could be completed by merely driving by the complex in Donaghmede to check that ‘yes, it exists; yes, it should be priced at market rates’.

Why hasn’t the developer just fixed the problems?

Dublin City Council tried to make this happen but McFeely says he cannot afford to do so. The Louth native filed for bankruptcy in the UK but was declared bankrupt by the Supreme Court in Ireland in July 2012.

Separately, he was sentenced to a three-month prison sentence and €1 million fine for being found in contempt of court after he failed to repair the defects at the north Dublin development. However, that sentence was overturned on appeal and he served no jail time.

Barristers for McFeely argued that the developer had not been able to comply with the order to carry out repairs at Priory Hall because he had been evicted from the site almost two weeks earlier by the local authority.

In her ruling, Supreme Court chief justice Susan Denham said there were unfortunate consequences from the request to have McFeely removed and that she was satisfied that he could not be in breach of the court order to carry out repairs because of that order. He served no jail time and did not pay the fine.

Does insurance not cover this?

Homebond, the building insurance agent, has refused to accept liability for the issues at Priory Hall.

And the block insurance was dropped just days before the council sought the eviction order from the High Court. The insurer said it had carried out an inspection and could no longer provide insurance, citing a number of problems, including fire safety issues, leaking, incorrect materials used on the roof and mould growing on the walls. Brokers for the residents searched up and down the country but could not find an insurer willing to take the properties onto their books.

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Image: Priory Hall Residents

Is this costing me?

Well, yes. Dublin City Council’s bill for the debacle continues to grow – meaning the taxpayer is shelling out for the issue.

At last look, more than €3 million has been spent on temporary accommodation, 24-hour security at the evacuated site and legal costs.

Legal costs? Why?

There have been various legal cases taken over Priory Hall. The evacuation order had to be sought by the High Court back in 2011, then the numerous legal battles ensued with developer Tom McFeely.

Finally, the residents and the local authority have been in court over who pays for their temporary accommodation.

The High Court has said the council is responsible for paying for the housing but this is being challenged in the Supreme Court. That hearing is up on 15 October. If the council is successful, the residents will have to begin paying rent on top of their mortgages.

Are they still paying their mortgages?

The vast majority have stopped paying. Intially, moratoriums were put in place so monthly repayments could be postponed but residents now refuse to pay for a home they cannot live in.

A resolution process has been set up between the council, the lenders and the residents but it has been slow-moving.

Most of the mortgages are priced between €200,000 and €280,000. The resolution process was supposed to last three months but has now entered its 17th month.

The government has cited the personal insolvency regime as a possible solution but the residents dismiss the idea, claiming their issue is unique and not akin to that of people in negative equity. They say they are able to afford their repayments but cannot continue them while they have no physical home.

What do the residents want?

The residents cannot see a way back into Priory Hall. They believe demolition is an option.

They also want to meet with Minister Hogan to hash out the issues. There is no point “kicking it into the long grass”, they say.

Hogan has refused to meet them over the past two years because of ongoing legal cases but they have dismissed the argument, noting that the current Supreme Court appeal deals only with their temporary accommodation and not the resolution process or the long-term solution.

What are Dublin City Council saying?

Not much. The legal battle means the local authority is keeping quiet on the issue. In its most recent statement to TheJournal.ie, who had asked for a response to Hogan’s suggestion of demolition, it said:

Dublin City Council continues to seek a resolution for the residents under the chairmanship of retired judge, Mr Justice Finnegan, and the City Council is fully engaged in this process. we do not wish to comment on or pre-empt the outcome of that process.

What are the banks saying?

Yesterday, AIB promised to engage with with customers who have mortgages at the derelict housing complex in north Dublin.

AIB chief Duffy told an Oireachtas Finance Committee that the bank wants to ‘put a long-term permanent solution in place’ for its 18 mortgage holders in Priory Hall and said that it will begin engaging with them in next couple of weeks.

What next?

The Supreme Court appeal which will decide who pays for the temporary accommodation will be heard next month, while the resolution process is ongoing.

Meanwhile, the residents continue to live in temporary accommodation paid for by the council and four security men continue to police the derelict site in Donaghmede.

Read: AIB promises to engage over Priory Hall as Minister says it may be demolised

Two years on: Pictures show Priory Hall apartments in ruin

See TheJournal.ie’s coverage of the Priory Hall crisis

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25 Comments
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    Mute Matt Connolly
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    Aug 13th 2013, 8:28 PM

    The hair style has to be the biggest crime of all…

    887
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    Mute Owen Brady
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    Aug 13th 2013, 9:18 PM

    Actually Peru is the new Christmas shopping destination …..exchange rate and all.

    84
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    Mute aisling doyle
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    Aug 13th 2013, 8:07 PM

    Must think its funny , The smirk on her I’d be shitt..g myself .

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    Mute Shaun the Sheep
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    Aug 13th 2013, 8:44 PM

    They look very relaxed for a couple girls just caught with cocaine.

    539
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    Mute Jeff Kennedy
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    Aug 13th 2013, 8:46 PM

    A couple of “pretty Princess’s” who have had everything they want .Their about to get a massive reality check.

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    Mute Richard Crompton
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    Aug 13th 2013, 9:18 PM

    Be quiet Jeff dont be such a horrible cretin, lets wait until the full story comes out and the trial before you do the typical nasty begrudger thing that too many people in Ireland have began to undertaken. Feel for the girl she must be scared, who knows peoples reasons for doing things lets not jump to conclusions.

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    Mute Victor Ajani
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    Aug 13th 2013, 9:22 PM

    Richard do you know why they were in Peru?

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    Mute Anne Roberts
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    Aug 13th 2013, 9:41 PM

    Thought the very same thing, Aisling, she looks like she she hasn’t a care in the world, I’d have dropped dead of fright at this stage, and I’m not kidding..

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    Mute John Cotter
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    Aug 13th 2013, 9:19 PM

    I’ve an idea. Have the two girls serve any sentence they recieve in Ireland and send the Dundons to a prison in Peru. Win win.

    569
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    Mute Ann Mc Loughlin
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    Aug 13th 2013, 9:54 PM

    I’d agree but for the fact that a lot of gangland crime has it’s roots in the drugs trade. Otherwise spot on!

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    Mute Adam Power
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    Aug 13th 2013, 8:46 PM

    That cocaine was merely resting in my porridge.

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    Mute karla carroll
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    Aug 13th 2013, 8:12 PM

    Of course they have to say that. To publicly admit she was guilty before a trial would be stupid.

    Of course they have to support her, she is family and they love her anyone in their situation would do the same.

    269
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    Mute John Molloy
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    Aug 13th 2013, 8:22 PM

    Like on all threads regarding this case there are some pretty harsh comments.And justified. If by having no sympathy for them and them receiving a long jail term deters only ONE girl from smuggling drugs,then it’s worth it.

    227
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    Mute Enda D. Monaghan
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    Aug 13th 2013, 10:03 PM

    Fully expect to see these two on banged up abroad in a few years. Have no sympathy for them, only their families for being put through this.

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    Mute Truth Patrol
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    Aug 13th 2013, 8:29 PM

    Not a good start by her solicitor misspelling her name.

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    Mute Tiger Bay
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    Aug 13th 2013, 9:07 PM

    Will not be long until they turn on each other

    157
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    Mute Dan Portman
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    Aug 13th 2013, 9:19 PM

    have they said what they were doing in peru,and why they told no one they were going ?

    135
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    Mute Peter Dunne
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    Aug 13th 2013, 8:48 PM

    How is so much information being leaked already? Is it peruvian authorities putting stuff out to the press or a pr campaign by defense? Photos and videos of the arrest being made and them giving information on camera
    that is then leaked to world press. Seems odd

    129
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    Mute Ann Mc Loughlin
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    Aug 13th 2013, 9:52 PM

    The conspiracy theory was bound to get an airing…..

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    Mute Dan Portman
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    Aug 13th 2013, 9:21 PM

    Did someone force them to go to the airport and get a plane to peru ? doubt it

    128
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    Mute Sandra Clifford
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    Aug 13th 2013, 9:26 PM

    Stupid girls i dont even think they realise how much trouble they are in.At the moment they are been held in police cells which are like the Ritz compared to the prisons i know they were stupid to do what they did still i feel sorry for them and the stress and worry their parents are going through id still feel the same if it were to lads

    114
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    Mute Paul M. Barrett
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    Aug 13th 2013, 8:19 PM

    You should probably close the comments section for this story if its going to be so heavily moderated, it will save you time and your readers time.

    My previous deleted comment was reasonable.

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    Mute Hakuin Murphy
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    Aug 13th 2013, 8:36 PM

    I think she should use the “I’m just a girl – I like kittens and pink” defence.

    106
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    Mute vv7k7Z3c
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    Aug 13th 2013, 8:20 PM

    Hey guys,

    Let’s remember that Michaella McCollum Connolly or Mellissa Reid have not been charged or found guilty of any crime, and we have to be careful about speculation regarding the details of this case.

    I’ve already had to remove a number of comments, I’m sure people can understand the sensitivities here.

    Thanks,
    Amy

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    Mute aisling doyle
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    Aug 13th 2013, 8:22 PM

    Then close the comments all together . How are they in prison if not charged with anything ?

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    Mute Ryan'O
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    Aug 13th 2013, 8:24 PM

    We know you like to remove comments Amy but thanks for clearing that up.

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    Mute vv7k7Z3c
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    Aug 13th 2013, 8:25 PM

    Aisling, Michaella is being held by the Peruvian authorities on suspicion of drug charges, she will appear in court tomorrow and it will then be decided if she is charged or not.

    People are held by police before that decision is made.

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    Mute vv7k7Z3c
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    Aug 13th 2013, 8:28 PM

    No, I don’t Ryan.

    36
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    Mute aisling doyle
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    Aug 13th 2013, 8:37 PM

    Oh I see …. ,I’d still be shitting myself , just watching sky news now they are cool as cucumbers …

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    Mute john cleary
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    Aug 13th 2013, 9:34 PM

    But why’s she wearing a Mickey Mouse hat?

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    Mute GOLDEN ARMS
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    Aug 13th 2013, 9:42 PM

    Agree 100% Joan and Buckwheat, I seem to recall an article on the Tsaernaev brothers trial not so long ago, and comments were disabled for legal reasons…..even after all their articles that left out the words Suspect and Alleged..dunno what’s goin on with them

    28
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    Mute Sinead
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    Aug 13th 2013, 9:30 PM

    Can’t help feeling sorry for their families

    98
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    Mute Ann Mc Loughlin
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    Aug 13th 2013, 10:05 PM

    Yes Sinead I do too, those poor families either way it’s torture and a life sentence for them, they neither reared them nor groomed them for this nor was this their dream for their baby girls. If the girls are convicted their poor innocent families are going to suffer too, are the girls innocent? I don’t know. Will they get a fair trial? Who knows. Will they do time? Most likely. Will they learn the hard way? Yes. Let’s leave it there guys, it’s not about what we think say or believe, it’s a nightmare for these families, it’s a worst nightmare for these girls, (whether it’s of their own doing or not) so none of this is for us to judge comment on or ever opinionate upon, but I would appeal to these women, their families and any others who might even contemplate this ‘lifechoice’ to consider the awful damage to lives that their choices do. Please stop drug trafficking for everyone’s sake.

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    Mute Aisling Omeara
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    Aug 13th 2013, 9:53 PM

    I know people who worked in Ibiza and it was a shit job but never turned to drugs. does she realise that she is never going to get a job in the further whether she is charged or not? they both look so cool and collected just after being caught with the drugs on them, if that was me I wouldn’t be like that at all id freak out and I wouldn’t have my family to support me.

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    Mute John Mullen
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    Aug 13th 2013, 8:37 PM

    Let’s hope they both have a fair and unprejudiced trial, unlike the ridiculous prejudicial comments posted here. And I would encourage these prejudicial commenters to Google the meaning of the word prejudice. What chance do they have in a for them alien jurisdiction when their own pre judge them so negatively.

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    Mute Victor Ajani
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    Aug 13th 2013, 9:01 PM

    @John Mullen: what is your definition of a fair trial? If proven guilty, should they serve the sentence or not? should they do less jail time, because they are Irish/British and pretty? I would consider this a massive injustice..

    103
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    Mute John Mullen
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    Aug 13th 2013, 9:25 PM

    @ Gerard and Victor. This is exactly my point. I can read what I like into this, just like many of the negative lynch mob commenters. I just hope they get a fair trial and the truth come out. It’s then up to the peruvian judiciary to decide what happens.

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    Mute John Mullen
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    Aug 13th 2013, 10:03 PM

    Will one of the 40+ red thumb brigade please explain why these defendants don’t deserve a fair trial. John Dundon received a fair trial and will be convicted in due course. The fact that his trial was fair and transparent means Limerick and Ireland in general will be rid of this blight on society for years to come. If the girls are guilty but do not receive a fair trial they’ll get out on appeal so where’s the logic in an unfair trial not to mention a fair trial being one of the foundation stones of liberty and democracy. A minor consideration for the hang ‘em high and ask questions later, zieg heil, lynch mob.

    47
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    Mute Michael Mc Gauley
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    Aug 13th 2013, 8:10 PM

    Disgusting comment. What about innocent until proven guilty.

    83
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    Mute Eoin Mac Cárthaigh
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    Aug 13th 2013, 8:33 PM

    Gráinne- question: how many times have you commented on articles relating to this story today (on the journal and otherwise)?

    36
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    Mute Duke of Limerick
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    Aug 13th 2013, 8:39 PM

    Grainne,

    They could have been forced to take them.

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    Mute Gráinne Duggan
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    Aug 13th 2013, 8:45 PM

    No idea. Why do you ask?

    71
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    Mute Eoin Mac Cárthaigh
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    Aug 13th 2013, 9:06 PM

    Because you seem ever so slightly preoccupied with it. We understand your point of view as you expressed it but you seem to have a difficulty with others expressing an opinion which differs from your own.

    35
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    Mute Gráinne Duggan
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    Aug 13th 2013, 9:08 PM

    Interesting comment. I wonder what your comment would be if my opinion was the same as yours…

    84
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    Mute Eoin Mac Cárthaigh
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    Aug 13th 2013, 9:14 PM

    Have I expressed an opinion either way? Presumptuous of you to say that my opinion differs to yours when I’ve yet to present one. I was making the point that you seem to be commenting every time someone expresses an opinion which differs to yours. I was wondering you get so offended by different opinions.

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    Mute Mr Know It All
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    Aug 13th 2013, 9:28 PM

    I see behind Micaella she has put up a mural already. You can take the girl out of Tyrone….

    80
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    Mute Charlotte Mann
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    Aug 13th 2013, 9:53 PM

    Wonder if it’ll be the age old story of being talked into it by some cute guy. Remember the film broke down palace anyone? They should just start showing people films like that in secondary school to drill it into their pretty little heads. I have no sympathy for these girls especially after putting the families through hell for two weeks, thinking they were missing or dead. Saying that this is one of the reasons the war on drugs has to stop. In the end the world would be a happier place and those who choose to use drugs let it be on their heads.

    73
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    Mute GOLDEN ARMS
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    Aug 13th 2013, 8:13 PM

    Obviously a very compassionate prihk here, we all make mistakes in our life’s no-ones perfect I hope the judge is very lenient on our compatriot and she returns home safe and unharmed very serious lesson learned.

    67
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    Mute Ryan'O
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    Aug 13th 2013, 8:24 PM

    +1 Grainne.

    42
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    Mute Eileen Nertney
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    Aug 13th 2013, 8:28 PM

    Lenient?! Anyone (knowingly) carrying drugs, this case or any other, is as bad as the good for nothings we tend to associate selling the stuff!

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    Mute Les Rock
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    Aug 13th 2013, 8:59 PM

    I made mistakes as a lad, some dingers, but I was never caught with 11k of marching powder in me bag

    226
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    Mute Les Rock
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    Aug 13th 2013, 9:22 PM

    Sky news are reporting that they are saying they were forced at gunpoint by columbians

    63
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    Mute Joan Featherstone
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    Aug 13th 2013, 9:31 PM

    Quelle joke, so they couldn’t have approached security at an airport and reported these so called columbians???

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    Mute Les Rock
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    Aug 13th 2013, 9:54 PM

    Exactly Joan. Id have sang like the proverbial canary

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    Mute Bob Frapples
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    Aug 13th 2013, 9:55 PM

    In the video that was released it didn’t look like they were forced at gun point to do anything. They were so relaxed they were horizontal.

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    Mute Erin Smith
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    Aug 13th 2013, 9:56 PM

    Or refused to get on the flight to Lima in the first place? They also don’t look at all like they’d just been forced to do anything at gunpoint. Sorry, just don’t buy it.

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    Mute Paddy Murphy
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    Aug 13th 2013, 9:26 PM

    Can every just put the word “hypothetically” before their comment. Cheers

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    Mute Niall Griffin
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    Aug 13th 2013, 9:13 PM

    I read on another news site that they are claiming they were taken at gunpoint by a Colombian gang.They were held in Morocco before being moved to Peru.

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    Mute Victor Ajani
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    Aug 13th 2013, 9:11 PM

    This reminds me of that episode of podge and ridge were micky flies to south america for his ordination..

    22
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