The Taoiseach, Brian Cowen, said the statement issued last night by Ivor Callery in regard to his expenses had raised more questions than it had answered.
Speaking at the Tullamore show Mr Cowen said: “This issue arose last Sunday and I immediately asked the general secretary of the party to make contact with him. There was not direct engagement back with us. The Committee of the Ard Comhairle suspended his membership without prejudice.
“He is not a member of the party as things stand. We have to have a full investigation into this and I am glad to see the Senate Committee will also be moving quickly on this.
“On the statement last night, I think it raises more questions than answers, quite frankly. I am very anxious the process that has to be pursued gives him an opportunity to put his position to the relevant committees at party level and at Seanad level and take the outcome from there.”
Asked if he should not resign, the Taoiseach said he as leader of the party was not in the position to arrange for that to happen.
“It is a matter for him to consider now. I presume what we are going to see in the coming weeks with the committees looking at this issue is a situation which he will have to be looking at in due course if it is warranted.
“As I say, on a prime face basis we have seen decisions taken by our own party last week to indicate we cannot have in any way a situation where the trust and confidence of the public have questions about the way politicians conduct their affairs.”
To a question posed if the Senator was dragging politics into the mire, the Taoiseach said: I don’t want to say any more than I have said because as you know we have a process in place now of investigation.
”But we have made our position clear within 24 hours of this emerging within 48 hours of this emerging last Sunday when we made the decision to suspend his membership.”
Pressed on whether he should not now ask the Senator to step down, Mr Cowen said: “I don’t have the means by which that can happen from a request by me. But I have made my position clear as party leader. His membership has been suspended. There is an investigation which will be taking place in the coming weeks and there are questions obviously that need to be answered.”
Earlier Fine Gael’s justice spokesman Eugene Regan accused the Senator of trying to “buy time” by issuing “simply not credible” statements in relation to his expenses.
Mr Regan said: "His statement is simply not credible and offers no explanation for this latest abuse of the expenses regime.”
"It confirms the view that the matter of Senator Callely's expenses should be investigated by the appropriate authorities - that is the Garda Síochána and the DPP."
Last night Mr Callely insisted he acted in good faith when submitting expense receipts from a company that had gone out of business - but admitted he was repaying the money he received.
The Senator, who had remained silent on the controversy, said he had received mobile phone invoices and passed them on to the Oireachtas believing that they were accurate.
A statement issued by the former junior minister claimed he had no reason to think the bills were not in order.
“He submitted to the Houses of the Oireachtas in November 2007 the four receipts to cover the period of January 2002 to July 2006, totalling €1,907.64 euro,” the statement said.
“He does not know how these receipts were issued by a company that had ceased trading.
“It is now clear that these claims should not have been made.”
Mr Callely regretted the difficulties which had been created, the statement added.
“He therefore withdraws these claims and refunded all monies to the Leinster House authorities in respect of the said invoices concerning the amount paid on mobile phone expenses (Total €2,879.45).”
Mr Callely was suspended from the Seanad last month without pay for 20 days after an inquiry found he intentionally misrepresented where he lived for the purpose of claiming allowances worth €81,000.
Additional reporting PA