Laois councillors want legal action on Ernst & Young over unpaid builders bond
Financial firm Ernst & Young should face legal action over delays on handing over the bond for an unfinished housing estate, say Laois county councillors.
Gracefield Manor on the Laois Kildare border in Ballylinan is one of the remaining victims of the building crash, having been left unfinished since 2008.
The property loan was eventually sold to a vulture fund and Ernst and Young are now the appointed receivers. The bond worth an estimated €190,000 was to be released to Laois County Council on June 5.
However the council's planning section reports that the company has not answered their calls since July. The council needs the bond to finish off roads and other infrastructure and then take the estate in charge.
Cllr Padraig Fleming tabled a motion asking for an update on the council's efforts, at the November meeting of the Graiguecullen Portarlington Municipal District.
"This five months of a lack of response worries me. I consider Ernst and Young one of the top firms, if they don't respond to a county council it's very serious," he said.
Cllr Aidan Mullins seconded his motion.
"I have submitted five motions over the years about this estate and we have been bounced on from receivers to other agencies. Ernst and Young have ignored ten phonecalls, they wouldn't impress me just because they have a big name. We need to go after them with all guns blazing," he said.
"They should be threatened with legal action," Cllr Fleming said.
"Exactly, play hardball," agreed Cllr Mullins.
Laois County Council's Director of Services for housing Gerry Murphy said he will contact the receivers himself.
Gracefield Manor was designed to have 133 houses, two creches and an office building, with phase one to be built by 2008.Only about 50 houses got built and their owners paid top prices for them but remain without finished road surfaces and proper services for lights and infrastructure.