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I am one of many - Wilson

AIB issues proceedings against Cavan senator over €1.8m loan

Senator Diarmuid Wilson.

Cavan Fianna Fáil Senator Diarmuid Wilson has said that he is one of the many thousands of Irish people who are being chased by banks as a result of the recession. He made the comments after an article in the Sunday Independent last weekend revealed that he is one of three people being sued by AIB for a €1.8m loan.

Former Fianna Fáil county councillor TP Smith and Ann McGarry, the wife of Fianna Fáil TD Brendan Smith, are the other two investors who took out the loan to invest in the Smith & Wilson Tavern in Cavan town in 2003. Ms McGarry had a small shareholding in the building and had no involvement whatsoever in the pub business itself.

AIB issued legal proceedings in the High Court last month against the three and the case was listed for next month to allow both sides time to reach an agreement.

Speaking to The Anglo-Celt this week, Senator Wilson said that he was hopeful that agreement could be reached and the case won't go to court. He said that what seemed a good investment at the time had not worked out.

"All parties are working hard to resolve the situation," he said, speaking on behalf of TP Smith and Ann McGarry also.

"I am just one of tens of thousands of people in difficulty at the moment," continued Senator Wilson. "I have representations from members of the public every day and I know exactly what they're going through."

Senator Wilson said that, despite the debt, his tax affairs are in order as required under the Standards in Public Offices Act.

The Smith and Wilson Tavern opened in 2005 following a major refurbishment but ran into difficulties when the downturn kicked in.

The business was leased out in May 2010 and continued trading as the Glebe Tavern.

It was shut down by Gardaí a few months later during the Fleadh in August 2010 when it was discovered the pub was operating without a licence.

According to records in the district court, the pub licence had expired in September 2009 but Smith & Wilson continued to trade until May 2010. Senator Wilson told the Daily Mail in August 2010 that he thought the premises was licensed until the end of 2009 and that an application was before the courts for its renewal.