THE Socialist Party said that Clare Daly's decision to resign from the party was met with 'surprise and shock' from members of the party.
In a statement on the resignation, the party said: ' Over the last number of months, Clare's political connection to Mick Wallace, who engaged in tax evasion and the falsification of VAT returns, has damaged her reputation but also, by implication, has potentially damaged the reputation of the Socialist Party.
'Clare's approach has unfortunately also given the establishment and sections of the media the opportunity to attempt to undermine the Campaign Against Household & Water Taxes (CAHWT), which is a vital campaign in the battle against the disastrous policies of austerity.' The party statement continued: ' The Socialist Party condemned Mick Wallace's actions and demanded that he use whatever resources he has to pay the outstanding money immediately to the Revenue Commissioners.
'In contrast, Clare Daly offered political support to Mick Wallace despite the opposition of the Socialist Party to her acting in this way. Clare publicly vouched for Mick Wallace and his fitness for office, intervened on his behalf and consciously and consistently sat beside him in the Dáil which amounted to public political endorsement.' 'Since the start of June, leading members of the Socialist Party have repeatedly met and discussed with Clare in a genuine attempt to positively resolve these differences and limit the damage to all concerned. Unfortunately, Clare did not seriously engage in those discussions and ignored the advice offered.
'Clare's resignation reflects the fact that her actions and approach resulted in a complete breakdown in the political and working relations between her and the Socialist Party nationally, in the Dáil and between her and the branches of the Socialist Party in the Dublin North constituency.'