The Tanaiste decided to appoint an authorised officer to two Dunnes Stores companies after information emerged about payments of £180,000 and £282,500 (€228,553 and €290,202) which had not been disclosed to the McCracken tribunal, the High Court heard yesterday.

Dunnes' refusal to hand over the Price Waterhouse report, which contained details of investigations into some payments authorised by Mr Ben Dunne during his stewardship of the company, was also a factor in the decision of the Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney, to appoint the authorised officer. So too was the "effective refusal" of Dunnes to give details, sought by an authorised officer into Garuda Ltd (trading as Streamline Enterprises and owned by former minister Mr Michael Lowry), of any payments of more than £1,000 made prior to December 1993 for which Dunnes had not received value for money, Mr John McBratney SC said.

Mr McBratney, with Mr Mark Sanfey, was opposing an application by Dunnes and Ms Margaret Heffernan for an order quashing Ms Harney's decision. Mr McBratney denied claims by Dunnes that the authorised officer was duplicating other inquiries, including those conducted by Judge Buchanan into the Price Waterhouse report and the McCracken tribunal into payments to politicians.

In all the circumstances, the decision of the Minister to appoint an authorised officer was made in good faith and in total compliance with the terms of Section 19 of the Companies Act 1990, he said. He added that the court should not quash the appointment because of concerns Dunnes had expressed about possible leaks about the confidential affairs of the company. Earlier, in his submissions, Mr Dermot Gleeson SC, with Mr Richard Nesbitt SC and Mr Ben O Floinn, for Dunnes, accused Ms Harney of being intent on "endlessly revisiting" matters already picked over by elaborate, expensive and intrusive inquiries.

The hearing continues today before Mr Justice Butler.