JUNIOR minister John Perry's position has become increasingly tenuous after it emerged he had tax arrears of €100,000 with the Revenue Commissioners.
Taoiseach Enda Kenny yesterday gave a less than ringing endorsement to the minister and speculation has already begun about his successor as Small Business Minister.
Court documents also reveal Mr Perry told Danske Bank, to whom he owes €2.5m, that he "knew Richie Boucher of Bank of Ireland" during negotiations on his loans.
The documents also show Mr Perry accusing the bank of "a form of bullying" and alluded to the personal consequences of actions by the bank "with his job".
Mr Kenny said he has spoken with Mr Perry about his financial difficulties this week.
And the Taoiseach has also discussed the matter with Tanaiste Eamon Gilmore as concern within the Coalition over Mr Perry's position mounts.
However, it is not clear if the Taoiseach or Tanaiste were aware of Mr Perry's tax arrears – as neither Government leader is commenting.
But Mr Perry told Danske Bank in January 2012 that Bank of Ireland had agreed to give him a 10-year loan to help him address tax arrears of about €100,000, according to Commercial Court documents.
But it is not clear if the minister has since cleared the arrears with Revenue.
Last night, opposition parties called on Mr Perry (pictured) to make a statement on his finances as the reference to tax arrears piled the pressure on the minister.
Mr Perry has six weeks to repay €2.5m after he and and his wife Marie consented to a judgment for that amount against them at the Commercial Court over unpaid loans on Monday.
Mr Kenny said Mr Perry's case was "indicative" of a number of business people across the country who have got into financial difficulty. I don't really want to say anymore about John Perry's particular problem.
"I spoke to him on Sunday and obviously they are working on that for the future," he said.
Speaking on Mid-West Radio in Mayo, Mr Kenny said Mr Perry was committed to continuing his work as Small Business Minister.
"Obviously he has worked exceptionally hard in terms of his ministry. He's got a court judgment to deal with here now in respect of the next five or six weeks," he said.
Mr Gilmore's spokesman said the Tanaiste reiterated that Mr Perry and his wife should be given the "time and space" to deal with the issues.
He also confirmed the Taoiseach and the Tanaiste had a "brief conversation" on the matter.
Mr Kenny's spokesman also would not comment on the tax arrears question.
"The Taoiseach is not going to comment on the details of the case as the court proceedings progress," the spokesman said.
But Fianna Fail finance spokesman Michael McGrath said it would not be acceptable for Mr Perry, as Minister of State for Small Business, to preside over businesses that were not meeting their taxation obligations to the State.
"In my view, on that issue alone, his position is very much called into question," he said.
Mr Perry also told Danske Bank that AIB had agreed to give him an 11-year loan to pay €125,000 to other creditors and his other lenders had agreed to continue facilities on an interest only basis, minutes of meetings state.
The minutes relate to some of a number of meetings held between Danske and Mr Perry about delays in making repayments on a loan of €2.4m made to him and his wife in October 2011.
It also emerged that when the bank indicated last january that it would seek judgment or appoint a receiver if satisfactory proposals were not provided, Mr Perry expressed shock at the bank's "aggressive approach".