Controversy over €10,000 payment for Ahern speech

Manchester payment: The Taoiseach's admission in the Dáil yesterday that he was paid the equivalent of over stg£8,000 for speaking to a group of businessmen in Manchester, while he was minister for finance in 1994, has added more fuel to the controversy over payments made to him.

Under the terms of the cabinet procedure instructions in force in 1994, Mr Ahern should not have accepted a payment of anything like this size in his capacity as a minister.

"The convention is for a ministers to accept relatively inexpensive gifts to mark occasions such as official openings and not to accept expensive gifts, or when presented to return them," according to the booklet which was given to every member of the government at the time. It said where doubts arose concerning the rules and conventions in relation to gifts, the final decision would rest with the taoiseach.

The cabinet guidelines were subsequently amended in 1998 in the light of the ethics in government legislation. Under these guidelines, ministers are prohibited from retaining gifts exceeding €650. "Where such a gift is made to an office holder, by virtue of his or her office, it may be retained in the minister's department until its future is determined, whereupon it will be vested in the minister for finance.

"Any such gift, or where doubt exists about the value, should be notified to the secretary general to the government as soon as possible," says the cabinet handbook.

It says in an appendix to the section on gift:. "All office holders are expected to adhere to the fundamental principle that an offer of gifts, hospitality or services should not be accepted where it would, or might appear to, place him or her under an obligation."

The Taoiseach raised the issue of the Manchester payment in his television interview on Tuesday night.

Asked about it in the Dáil by Fine Gael leader Enda Kenny yesterday, he said that he had spoken to a number of business groups in Manchester over a number of years and the only time he received money was in 1994.

He told the Dáil he received a cheque for £8,000 and the money had been dealt with properly. Last night Mr Kenny said that it appeared from what he had said over the past two days that Mr Ahern had been invited to the function in Manchester as minister for finance.

"I am aware of no occasion when a minister of any government was paid to speak at a function. The cabinet handbook which sets the rules in relation to gifts given to ministers, makes it clear that gifts above €650 in value must be retained in the minister's department. The handbook also makes it clear that any such gift should be notified to the secretary general to the government as soon as possible. This payment of £8,000 clearly constituted a gift," said Mr Kenny.

"It would appear from the Taoiseach's comments that he accepted €10,000 for this nixer and lodged it to his bank account. This issue is very serious and requires further investigation and explanation by the Taoiseach.

"The matter will be raised again in the Dáil. If issues like this continue to arise regarding the Taoiseach's actions, his position could become untenable," said the Fine Gael leader.