Government plays down Callely resignation

The Government has sought to deflect attention away from the Ivor Callely controversy which cast a shadow over its Budget.

The Government has sought to deflect attention away from the Ivor Callely controversy which cast a shadow over its Budget.

Senior strategists tonight said no long-term damage had been caused to the Coalition by the affair. Budget Day had been carefully choreographed as a Government set-piece marking the start of its general election campaign.

However the controversies surrounding Mr Callely and his initial refusal to resign spoiled the occasion and annoyed Taoiseach Bertie Ahern and his Cabinet.

Government strategists tonight played down the debacle and speculated about the future of Mr Callely within the Fianna Fail parliamentary party.

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"Ministers come and go, it's part of the the cut and thrust of politics," one Fianna Fail insider said. "Callely was a marginal figure who will be forgotten about in the New Year.

"It will be interesting to see if he runs on the party ticket at the next election," he added.

Government sources also refuted claims that the Opposition had still triumphed over the Coalition even though it was difficult for finance spokespersons to pick holes in the give-away Budget. "There was a lot of sound and fury from the Opposition and the media but the Government has ridden it out," one senior Government source said.

Tanaiste Mary Harney earlier said she felt sorry for Mr Callely and his family but said high standards were required in public office.

"Nowadays people do expect high standards from politicians but they also expect confidence in office-holders and I think confidence in Ivor Callely as Minister of State was being eroded," she said.

Mr Callely's future within the Government was decided this morning when Mr Ahern told TDs in the Dáil that he had accepted his resignation.

Mr Ahern's keynote speech was delayed for 90 minutes by Opposition parties clamouring for a debate on the TD.

The Taoiseach is not expected to fill the vacant junior ministry until the New Year. It is likely to go to a North Dublin backbencher. Fianna Fail TDs Pat Carey, Jim Glennon, Sean Haughey and Sean Ardagh are all believed to be on the shortlist to replace Mr Callely.

Because of the importance of the ministerial brief - traffic management issues in Dublin and the major cities, road haulage and the Irish Aviation Authority - it is not clear if Mr Ahern will promote a backbencher or ask a sitting junior minister to move sideways and then fill that vacancy with a TD.