PDs in moves to quit Bertie
Sunday May 06 2007
THE Progressive Democrats were poised to pull out of Government last night after a crisis meeting had evaluated "highly significant" new claims relating to the purchase of the Taoiseach's home.
The PD leadership decided, after a three-hour meeting, to "enter into a wider consultation" with members of its parliamentary party in the light of the new information.
The meeting took place in the wake of a statement by Tanaiste Michael McDowell that he needed to reflect on the current situation.
In a statement issued last night, the PDs said discussions at yesterday's leadership meeting "analysed the import of information relating to the purchase of Mr Ahern's home . . . It was agreed that the new information is highly significant."
In an extraordinary denouement to the first week of the General Election campaign, dominated by cash payments to Bertie Ahern, his Tanaiste Michael McDowell was last night contemplating jumping ship, after learning of new information on hisfinances.
"This is crunch time at the moment," said one senior party source, who added that it was not a question of 'if' but 'when'.
One source said the breakdown in trust between Mr McDowell and Mr Ahern could now be fatal for the Government. Mr McDowell and his predecessor as leader, Mary Harney, were last night said by party sources to favour walking away from the Government.
At a crisis meeting of the party in Dublin, at teatime last night, the Tanaiste is understood to have outlined in stark terms the PDs' options. Among those present were Mary Harney, the Health Minister, Tom Parlon, the Minister of State, and Liz O'Donnell, the party's deputy leader.
The options included walking away from government immediately, a position understood to have the backing of Mr McDowell and Ms Harney.
The second was to remain in government until the General Election is over, but with a commitment not to do business with Mr Ahern in the future. The third option, promoted by a minority within the party, was to remain in government pending a full explanation from Mr Ahern.
A decision on the future of the Government is expected to emerge within days.
Last night's meeting is expected to be followed by a meeting of the National Executive, which includes the party leader and deputy leader, the trustees, executives and representatives of the Parliamentary Party. The National Executive will be asked to sanction any decision to quit government. A meeting could be called as early as today or tomorrow.
Last night, PD sources reported clear signs of a split in the party, with a flurry of telephone calls being exchanged among the Parliamentary Party and party executives.
One source said; "It's hard to say but it could be split 50/50."
The new information concerns the purchase of Mr Ahern's house in Drumcondra, information not revealed to Mr McDowell when details about the Taoiseach's finances were first leaked to the Irish Times last year.
Mr McDowell sought reassurance from Mr Ahern about the purchase of his house, before agreeing to put the cash issue to bed.
But last week, Mr McDowell was shocked to learn that a copy of a will showing that the Manchester businessman, Michael Wall, had bequeathed Mr Ahern the house, was not included in the deeds and mortgage documents which he was shown last September.
The information about the will was made public last Sunday, when a copy of Mr Ahern's statement to the Mahon tribunal was leaked to a newspaper. It also revealed that Mr Ahern had been given stg€30,000 in cash by Mr Wall, which he kept in his safe in St Luke's. He told the Mahon tribunal that the money was intended to be used to renovate the house, and was administered by Celia Larkin.
Mr Ahern attempted to shirk questions on the sterling cash payment or other aspects of his finances, saying he will respond before the tribunal. He was supported by Mr McDowell as recently as last Tuesday, when the PD leader said he was prepared to negotiate a new government with Fianna Fail.
