Taoiseach did not know friend was in on Boyne sale

The Taoiseach said he had not known that an acquaintance for many years was associated with the owners of the Boyne Valley site when it was bought by the State.

"It was with some shock that I discovered much later this man's involvement afterwards, as I understand how these matters operate," Mr Ahern added.

The Taoiseach was replying to the Fine Gael leader, Mr Michael Noonan, who said he was not alleging anything. "I accept that," Mr Ahern replied. Mr Noonan said he was simply asking whether the Taoiseach could see the implications of a situation in which the purchase of the site was being discussed far in advance of the Belfast Agreement and in advance of its purchase by the vendors.

"Does the Taoiseach understand the suggestion that those who bought the site did so in anticipation of it being sold on to the State, from which they subsequently made a profit of £5 million? It is unfortunate that one of the people involved was an adviser in the Taoiseach's Department. That, in a nutshell, is the nub of the problem."

Mr Ahern said: "Those who bring up this matter are adding one and one to get 11 just because I knew somebody who worked for the company that ultimately bought the site. I am aware that is the issue and I am glad that it is being dealt with. I welcome the opportunity to put on the record once more that I had no part in the flow of the site until my adviser brought it to my attention that the solicitor representing the owners wished to engage with the State.

"I had no part in the sale, as the matter was referred to the Office of Public Works and the Department of Foreign Affairs."

Earlier, Mr Ahern said the Belfast Agreement had placed a formal commitment on the Government to continue to take further steps to demonstrate its respect for the different traditions. "It was against this background, therefore, and immediately after the establishment of the institutions on December 2nd, 1999, that on December 5th, 1999, I announced that the Government had agreed in principle to purchase the site."