Lowry explains why he had to resign

The following is the text of Mr Lowry's statement:

The following is the text of Mr Lowry's statement:

AT the outset I would like to thank the Dail for this opportunity to set the record straight about a number of matters which have been the subject of intense comment in recent weeks. I will cover:

. my relationship with Dunnes Stores;

. the funding of my house in Holycross and the potential tax implications of this;

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. the circumstances surrounding my departure from Butler Refrigeration and the establishment of my own business;

. the matter of political contributions from Dunnes Stores;

. my role as chairman of the Fine Gael parliamentary party and trustees;

. the awarding of the GSM licence to Esat Digifone;

. other innuendoes and manufactured allegations which have been made against me.

Ideally, I would liked to have made this statement earlier. It should become clear in the course of what I am saying just why this would not have been possible. The matters are complex and involved others outside this House, whose interests have to be considered.

As a minister and a politician I discharged my responsibilities properly. These are the matters for which I am answerable to this House. As a businessman, I left unfinished commercial business behind me.

In my business life I accept I have been culpable in that I did not fully deal with the responsibilities arising from my business affairs in a timely fashion. When I entered Government in late 1994 I had to distance myself from my business almost without notice in unexpected circumstances.

When anybody with a business enters government the process of clearing up outstanding business issues is extremely difficult. I regret and apologise to the Taoiseach in particular for not bringing these matters to his attention before or after the formation of the Government.

On taking up the office of minister I made a declaration to the Taoiseach to the effect that I had availed of the tax amnesty and in so far as I was aware all my tax affairs were up to date and paid. I now accept that some of my tax obligations are still outstanding. I apologise to the Taoiseach, to this House and to the public for failing in that regard. I understand that, as people who make the law, politicians have a special responsibility to adhere to the letter of the law.

I cannot recall any member of this House ever making the sort of detailed statement of their personal and business affairs which I am about to make. It is a painful and unpleasant experience but it is one which I have chosen in order to make my position clear. If I repeat myself at any point it is only because I want this House to fully grasp the facts. Much of what I have to say today concerns my business relationship with Dunnes Stores. Let me make it clear that the relationship was formed at a time when Mr Ben Dunne was chairman and chief executive of that company. Mr Dunne had a particular style of doing business which reflected his personality. Since Mr Dunne's departure from Dunnes Stores the current management, led by Margaret Heffernan and Frank Dunne, have initiated fundamental changes in the company's style and the manner in which the business of Dunnes Stores is conducted.

I propose to outline the nature and basis of my relationship with Dunnes Stores as it was agreed with Mr Ben Dunne and how it operated. In the interests of fairness I must advise the House that the current management of Dunnes Stores dispute the validity of certain key aspects of my agreement with Dunnes Stores which predated their tenure.

After I was elected to the Dail my employer - Butler Refrigeration with whom I had enjoyed an excellent working relationship since I was 17 - felt that I could not serve the company and look after my interests as a Dail deputy at the same time and so I ceased employment with Butler Refrigeration on December 31st 1987. Over a year later, to my surprise as I will explain, Mr Ben Dunne approached me and told me he would be changing the way the refrigeration requirements of Dunnes Stores would be managed. He would be transferring the business away from Mr Butler. He gave me first option on this business and when I expressed reservations, he told me that if I did not take this opportunity it would go to another company which he named.

He proposed to pay for the refrigeration services provided in two ways. This was a dual arrangement in which payment was to be made to my new company for providing certain services and also payment and bonuses were to be paid to me for separate professional refrigeration services.

Agreement was reached on this basis and from March 1989 to the present day my company, Streamline Enterprises and I, provided multi-million pound services to Dunnes Stores. It is my contention that the net effect is that Dunnes Stores still owe me and my company money up to 1994 and 1995 respectively. No provision has been made for this in the company's accounts or in my personal tax returns as the amounts have never been established.

I purchased a house at Holycross in 1992. This is in the joint names of my wife and myself and is still mortgaged. As I was personally owed a considerable but undetermined sum of money, Mr Ben Dunne proposed that Dunnes Stores would undertake renovation of the house. Dunnes Stores appointed the architect and the contractor. It may seem incredible but the truth is that the total value of this work has still not been determined to my satisfaction. As recently as yesterday afternoon Dunnes Stores, through their solicitors, stated that payments to Faxhill Homes Ltd in respect of alterations to my house amounted to an extraordinary £395,188. I totally #eject this figure. My house, including the extension, is less than 4,000 square feet. Having been concerned about this matter I retained independent professional advice to assess the true value of the work done.

I must state emphatically that it was only when I read media reports on November 29th 1996 that I became aware for the first time of the suggestion that charges against my house were offset internally within Dunnes Stores to the ILAC shopping centre. This is a matter for Dunnes Stores.

In the strongest and clearest manner possible I want to state that any money spent on my house was income payable to me in respect of nothing other than professional refrigeration advice and service. This had nothing whatsoever to do with my role as a TD or subsequently as a minister. It was not a loan. It was not a gift. It was not a handout. It was income.

The work on the house was payment on account for professional services to Dunnes Stores. It was my understanding that the taxation consequences of this could only be dealt with when final agreement was reached with Dunnes Stores. It was not designed by me as a tax evasion measure. I made numerous attempts to finalise outstanding issues with Dunnes Stores. A sequence of events with Dunnes Stores - and therefore outside of my control - frustrated my efforts.

There is unfinished business, but business which I have been seeking to complete.

As I said above, no declarations in respect of these matters have yet been made by me because the value of what I earned under the terms of the agreement with Dunnes Stores has yet to be determined. In order to settle my tax affairs with the Revenue Commissioners the value of what I received from Dunnes Stores has to be determined and the period to which it relates settled.

I have paid residential property tax each year based on the purchase price of my house. In the light of the true value of the work to my house, which remained to be established, I will also have to review the residential property tax returns in this regard. The VAT aspects of these trading matters" will also be addressed.

Let there be absolutely no doubt that I intend to ensure that any taxation obligation is fully and promptly settled by me with the Revenue Commissioners. To ensure that there is absolutely no delay in this regard I, through my professional tax advisers, have already had preliminary discussion with the Revenue Commissioners in the way open to all citizens of this State.

Having been publicly criticised to an unprecedented level I would ask your patience and indulgence to enable me take you through the sequence of events which led to:

. the formation of my company;

. its entirely legitimate commercial operations;

. the outline of services provided;

. the financial arrangements and method of payment; and to

. the fact that despite all my efforts I have unfinished business with Dunnes Stores and therefore with the Revenue Commissioners.

Butler Refrigeration

Amongst the allegations made against me is the suggestion that I treated my first employer unethically. I began work as an apprentice refrigeration engineer with Butler Refrigeration in 1971. At that time Mr Butler operated from a garage at the side of his house. I did the normal duties designated to an apprentice. I then moved on to refrigeration maintenance and progressed from there on my own initiative to sales promotion. This was an outstanding success, so I went into sales full time and later became sales manager of the company.

The business was thriving and in the mid 70s Butler Refrigeration moved to a new extensive warehouse at Turtulla, Thurles. At that time we pursued one of the multiple groups with a view to expanding the business. After many advances to Dunnes Stores I finally received an urgent request to complete an installation for the company at its new store at Oakville, Clonmel. The work was completed satisfactorily. Following that Dunnes Stores started to conduct large volumes of business with Butler Refrigeration.

For many years I worked very closely with Dunnes Stores in the design, layout, installation and maintenance of refrigeration plant and equipment. I enjoyed the confidence and trust of Dunnes personnel, right up to senior management. During this period I represented Butler Refrigeration on several occasions in various discussions with Mr Ben Dunne.

In 1987 I was nominated to represent the Fine Gael Party in the general election and I was duly elected a TD. Shortly after my election it became apparent that Butler Refrigeration felt that I could not serve the company and look after my interests as a Dail deputy at the same time. I ceased employment with Butler Refrigeration on December 31st 1987 and acted as a freelance salesman for refrigeration products. I agreed with Mr Butler that I would retain the use of the car for a period and that whatever I sold for him would be subject to commission.

The beginning of consultancy work for Dunnes Stores

During this time as a freelance consultant I was contacted by a Dunnes Stores executive who had responsibility for Northern Ireland and England. He informed me that the company was opening a number of new stores ford food and textiles in England. He requested me to prepare the design and layout for the refrigeration plant and equipment and asked me to negotiate the contracts locally in England and to oversee the installation. I did this successfully on a consultancy basis for Dunnes Stores. I understood at the time that my successful work was recognised and appreciated. The executive told me that previous to the opening of the Bradford Store in November 1988 Mr Ben Dunne - who had arrived on the shop floor and had seen me - asked him what Butler Refrigeration was doing in England. He informed Mr Dunne that I was no longer with Butler Refrigeration but that I was acting as a consultant to Dunnes Stores.

Mr Dunne called me over and said he didn't realise that I had left Butler Refrigeration and that he would like to see me back in his office in Dublin. I tried unsuccessfully a few times to contact him and then dropped the matter. Two months later, Mr Dunne contacted me unexpectedly and arranged a meeting. It was a meeting I will never forget. He opened the conversation with me by saying that he was very surprised that I was no longer with Butler Refrigeration and that he valued the contribution that I had made to Dunnes Stores. He said that a number of his senior staff had confirmed the important role that I had played and the interest and commitment that I had shown to Dunnes Stores.

In his own inimitable style Mr Dunne asked me the following questions in quick succession. He asked me how long I was with Butler Refrigeration and I told him 16 years. He asked me had I any pension rights leaving the company, I said no. He asked me had I received any severance money, I said no. He asked me had I received any redundancy, I said no. He asked me had I received any lump sum, and I said no.

He proceeded to tell me that he had made a decision to change his refrigeration supplier and contractor and that he would give me first option on the business nationwide. My reaction was one of amazement and surprise. I said that I would find that difficult because I would be competing against the business of my old company, Butler Refrigeration. He responded that he was making the change anyway. He was giving me first option and if I was not interested in his proposal he would offer the business to another company which he named.

After considering his proposals - and in view of the fact that the business was going from Butlers anyway - I told him that I would manage some of the business and it was agreed that I would look after the Munster stores. He then called in his chief accountant and instructed him to provide whatever assistance and funding were needed to establish the business. I proceeded to establish what the cost factors involved would be and at a later stage I returned to him for a further discussion in the presence of the Dunnes Stores chief accountant. Mr Dunne said that his objective was to reduce the refrigeration overheads and cost to Dunnes Stores and he was prepared to assist me to set up a new company to achieve the savings that he felt could and should be made. I agreed that my company would provide exclusive refrigeration services to the Dunnes Stores Group. I committed my company and myself to sourcing the best quality, most cost-effective equipment and the most reliable systems.

I also agreed that the company would provide all refrigeration plant equipment materials and components at cost price. I would design and arrange layout and technical details for all new installations and major refurbishment. All installations and maintenance would be carried out by qualified engineers employed by me. A programme of preventative maintenance would be carried out in beach store together with a 24-hour emergency service. I would advise the group on technical advances and industry developments to ensure that the most advanced systems were available to Dunnes.

Remuneration from Dunnes Stores for refrigeration services

In regard to remuneration we discussed a number of options on which way to remunerate the company and me.

Mr Dunne said that I should leave it to his own judgment to make a decision on profits but clearly stated that he would put the company in profit and also remunerate me separately for my technical advice and for the project management of the various jobs. There would also be performance bonus. It was agreed that my company's costs and outlays would be calculated annually and that there would be regular payments on account. At the end of the year the auditors appointed on the direction of Dunnes Stores would check income against expenditure and any outstanding monies would be paid by Dunnes. He gave me a commitment that he would personally review the performance and agree monies due on an annual basis. ,Unfortunately for me, he never got around to doing that. As our negotiating positions were far from equal I did not feel able to press the matter very strongly. This inequality in negotiation positions has been a persistent difficult in this matter generally.

There was no written confirmation of the agreement. All of the arrangements were with Mr Dunne verbally. The relevant arrangements were made in the presence of the chief accountant with the Dunnes Stores Group. I did ask to have the agreement formalised but my suggestion was dismissed by Mr Dunne as being unnecessary and he just posed the question "did I not trust him?" My failure to get this in writing is central to my present difficulty.

I began operations in the Munster area and it soon became very evident that compared to previous years, huge savings could be and were achieved. Mr Dunne then decided that I should at the earliest opportunity take over the service and maintenance of all the stores in the Dunnes Stores Group.

Arising from discussions with Mr Dunne and the Dunnes Stores chief accountant it was agreed that I should purchase a site and build a warehouse and that Dunnes would provide the necessary financial backing credit facilities. A loan was advanced to the company and repaid by agreement over four years. This transaction was shown in the accounts of Streamline Enterprises.

The relationship worked very well in practice. Through my agencies I sourced a substantial amount of new equipment which was in voiced at factory price direct to Dunnes Stores.

I initiated new policies and programmes for the Dunnes Stores Group and standardised all installations. There was an acceptance and acknowledgment that there had been a dramatic improvement in the presentation of refrigeration and also a huge reduction in the overall cost in refrigeration outlay for the Dunnes Stores Group. To illustrate the full magnitude of the savings achieved, maintenance was the area where one would normally expect the lowest savings but yet we were able to reduce the maintenance costs for Dunnes Stores by almost 50 per cent.

The house at Holycross

In the knowledge that I was owed substantial money - but in the absence of any discussion as to the amount involved - I told Mr Dunne in early 1992 that I intended to purchase and refurbish a house at Holycross. He said that I had achieved excellent results and he was delighted with my performance and would assist me financially towards the purchase and refurbishment by way of an advance on the money owing to me which had yet to be quantified.

He told me that he would give his chief account instructions on the matter. I was later informed that Mr Dunne had appointed a Dunnes Stores Group architect and contractor. I was advised by Dunnes Stores chief accountant that after consultation and agreement on the plans I should leave all future arrangements, including the financial arrangements, to Dunnes Stores.

The question of planning permission has been raised. The work on the house at Holycross involved replacement and extension of existing structures and internal alterations. All out-buildings were already in existence and were only restored. I have instructed the architect to apply for retention permission for the extension portion which requires planning permission. I regret that this permission was not sought earlier.

The change in Dunnes management

In the meantime, Mr Ben Dunne encountered personal problems. This is a suitable point at which to put paid to yet another of the countless malicious rumours circulated about me. No, I was not in Florida with Mr Ben Dunne, not then, not ever.

He was unavailable to me and many other people for a prolonged period. As a result, I could not get a meeting to reconcile our financial arrangements. This was followed by Mr Dunne's removal as chairman of the group in September/October 1992 and as chief executive in February, 1993. This was a most traumatic and difficult time for the entire Dunne family.

SOME time later in 1993 - and following unsuccessful attempts to resolve the outstanding issues with senior executives in Dunnes Stores - I met with Mrs Margaret Heffernan by appointment in her office. I told her that monies had been spent on my house by the company with Mr Ben Dunne's approval.

Mrs Heffernan advised that there were many problems relating to Mr Ben Dunne's chairmanship of the company and his time in control, that the company was trying to assess the extent of the problems and that no issue - including mine - would be dealt with in isolation.

However, she said that she was determined to address all outstanding issues and that new systems would be implemented to ensure that orthodox practices and procedures would apply to all future Dunnes Stores transactions. Subsequently, I heard that Price Waterhouse had been appointed to conduct an internal examination of the company's affairs. In addition, litigation proceedings had commenced internally in the company. As Dunnes Stores were essentially my only customer, there was nothing I could ado to force the issue.

I may say at this point that - when the Price Waterhouse report was being prepared - nobody sought any comment from me. I wish it were otherwise. It would have given me the opportunity to answer questions in an orderly way before the report was selectively and maliciously leaked to the press.

To this day, I am in the invidious position of not having seen that report. However, I understand that - apart from the house transaction - there are two other references to my business in that report:

. a payment of £50,000 - this was income payable to me under my arrangement with Dunnes Stores on which tax has been paid;

. payments of £6,000 and £6,500. These were paid as bonuses by Dunnes Stores for the staff of Streamline Enterprises, not including me. These payments were made in cash without deduction of tax.

During 1994, I had a number of discussions with Mr Frank Dunne, including one wide-ranging discussion, during the course of which I said that I was unhappy that there were outstanding issues in respect of my house and the reconciliation of the account that never took place.

We both agreed that it would be best to have a formal agreement and a new arrangement going forward. He assured me that a new formal agreement would be drawn up for the company. Interim changes were made which were of benefit to Streamline. In March 1996, Dunnes Stores agreed the terms of a formal agreement for Streamline Enterprises.

As I have said, the current management of Dunnes Stores dispute a number of key aspects of this. Through their solicitors, Dunnes Stores yesterday stated:

(a) no money is due to me personally or to Streamline Enterprises (other than any liability to Streamline incurred in the normal course of business since 31 January 1996);

(b) that Dunnes Stores relationship has always been with Streamline and not with me;

(c) that they consider the payments to which I have referred as irregular payments.

Irrespective of this legal letter, the fact is that I have set out before you the agreement which I negotiated with Dunnes Stores in 1989 through Mr Ben Dunne in the presence of his chief accountant.

There is, therefore, disagreement about:

. the monies still owed to me and my company by Dunnes Stores for work done prior to the implementation of the new arrangement; and

. the value of the work on the house at Holycross.

In short, the monies provided by Dunnes Stores in connection with my house in Holycross were a payment on account for professional services rendered by me. The value of this part payment has never been finally agreed with Dunnes Stores. The extent of the monies I believe to be owing by Dunnes Stores is a contentious issue. Until these matters are determined, I cannot assess all of the tax implications of my arrangements with Dunnes Stores. When they are determined, they will be met in full.

I never made any secret of the fact that Dunnes Stores had paid me for professional services by way of assistance towards my house. Secondly, if someone was trying to hide income, would they not be more likely to put it in say, an off-shore account? The last thing they would do is to spend it on a very obvious structure of bricks and mortar for all the world to see.

Notwithstanding the issues in dispute between us, I welcome the determined efforts of Dunnes Stores to bring a new order in their affairs; the Price Waterhouse report is a part of this response. It allows me - and I presume many other genuine people - to put all their businesses on a sure footing.

This is the substantial issue on which I wanted to give this House and the public an explanation. However, other matters have been raised and allegations have been hurled which I would like to put to rest.

Dunnes Stores and political contributions

Since the issue of my house was raised, the debate has moved to the topic of political funding. It is a fact - and political posturing cannot obscure this - that most of the political parties have long depended for their survival on contributions from the business and corporate sector. It is also a fact that individual TDs from all parties down through the years receive contributions at election time to defray campaign expenses.

The only political contribution I ever received from Mr Ben Dunne was in 1992 - prior to the general election. At that time, I received £5,000 from him towards my election campaign. I have received no other political payments of any nature whatsoever from Mr Ben Dunne or Dunnes Stores either before or since then.

The monies referred to in respect of my house had no connection whatsoever with my role as a politician. This was income - an entirely proper and legitimate payment - solely and exclusively received for professional refrigeration services to Dunnes Stores.

To the best of my knowledge neither Dunnes Stores, Ben Dunne - nor any company in which he had an interest - benefited in any way from any decision I made as a minister. In taking the decisions I took as minister for transport, energy and communications - contributing to the conduct of Government business and in my dealing with colleague ministers - I neither improperly sought, nor obtained favours, exceptional treatment or benefit for anyone.

I have always conducted my affairs as a politician - both as TD and as a minister - with integrity and with fairness and to the best of my ability. I have done nothing improper. As minister for transport, energy and communications, I discharged my responsibilities in a scrupulously fair, impartial and objective manner. I treated everybody that I dealt with - irrespective of their political viewpoint or their position - with equal courtesy and consideration. My tenure was impeccable, my integrity uncompromised. I defy anyone to show otherwise.

When Deputy John Bruton took over the leadership of Fine Gael he had to come to terms with the party's crippling debt. Later he saw what I had done for the GAA, in turning around an apparently hopeless financial situation.

In the face of hostility, I had initiated the Feile concerts which had brought Semple Stadium from near bankruptcy to having healthy finances. He asked me as chairman of the parliamentary party to take on the additional role of chairman of the Fine Gael trustees. Yes, like other political parties, we asked for contributions from literally hundreds in the corporate sector. This included, as the Fine Gael Party has already made clear, Dunnes Stores. All monies went towards reducing the party's debt.

Esat Digifone, the GSM

competition

The Opposition and others have mischievously questioned the integrity with which I carried out the competition for the issuing of the second GSM licence.

When I announced the competition for the second GSM licence in March 1995, my sole priority was to ensure the development of effective competition in mobile telephony in Ireland. In order to achieve this end, I was determined to put in place a selection process that would be fair, impartial and objective.

My first and most outstanding difficulty was in assuring potential competitors that there would be a genuine competition with equal opportunity for all. There was a widespread belief that the matter was already a foregone conclusion as a result of an alleged agreement between on major player and a senior member of the previous government.

Clear criteria for the selection of the successful applicant were published to all interested parties. Andersen Management International, one of the most experienced international consultants in this field, was engaged following an open competitive process to provide advice.

A project team led by the Department, and including officials from the Department of Finance and the consultants, was given the task of selecting the successful applicant in accordance with the predefined selection criteria.

The project team - of which I was not a member - included representatives with specific expertise to carry out a professional evaluation in accordance with the selection criteria.

The terms of the competition were specifically approved by the European Commission.

The entire process was executed on a fully arm's length basis and was hermetically sealed from any external interference. The project team reached a clear cut, professional decision based on the selection criteria.

I was informed of the result of the competition by the secretary of the Department only on completion of the evaluation process which had been fully documented in the consultants report.

I want to state firmly, clearly and unequivocally, in the light of media speculation and allegation made in this House, that I did not seek to influence the outcome of this process. The most significant input from my part was to ensure a fair and objective competition which would yield the best results in terms of developing mobile telephony. I am confident that the success of the project will be borne out when the operator's service is launched early in the new year.

The house in Blackrock

It has been alleged that my house in Blackrock, Co Dublin, was somehow financed in an irregular way. I bought this house at a public auction in the same way as anyone else could. It is fully mortgaged to a building society. I bought it because it made economic sense for a serving politician to have a residence in Dublin. In addition, I felt it was a sensible investment for the future.

Also, I wanted somewhere private. After the current controversy, my privacy has been so invaded - through newspaper photographs and sightseers - that this is no longer possible. I will almost certainly sell the house.

Similarly, arising from a saturation of publicity, my house in Holycross has become a place of pilgrimage. My family must now endure cars queuing for a gawk outside the gate. People feel free to walk around the front garden and peer in the windows.

Some have chosen to make almost my entire life the subject of malicious comment as if everything I have was handed to me on a plate without any effort on my part. In truth, there is nothing mysterious.

I am proud of what I have achieved and I hope I have show that I have nothing to hide. As a teenager I didn't take school as seriously as I might have done. I left school without a Leaving Certificate. In 1971, my father died and I determined to make something of my life.

Without hesitation, I can say that from that day on, I gave one hundred per cent commitment to my business life, to my life with the GAA, to my political life. Anything I have was achieved through my own commitment and my own relentless hard work.

I have never claimed to be perfect. I am human and like all human beings I have my faults, weaknesses and failings. But I do claim one core belief. Anything I sold was mine to sell. Anything I bought was mine to buy - bought with my money, earned by me in the course of legitimate business.

My brother's farm

I read from last Saturday's papers that my brother has now been dragged into the frenzy because CIE financed a tunnel at his farm. Quite simply, the speed of trains has increased. CIE - following discussion with the IFA and ICMSA before I became a minister - decided to do such work throughout the country to reduce the potential danger of animals crossing the lines.

My brother's farm, along with others in the area, is affected in this way. It is perfectly obvious that this had nothing whatsoever to do with my public office. It was just another unfounded innuendo.

Record in office

I enjoyed working with my colleagues in Fine Gael, Labour and Democratic Left. The Government truly is working as an effective partnership. The three parties come to issues from different perspectives but take decisive actions behind which they all loyally stand.

Within the Department of Transport, Energy and Communications I was proud to move towards the creation of a semi-state sector which is strong, viable and customer-focused and ready to face the competitive challenges of the future. Any fair assessment of my short tenure in office will show:

. EU approval for a phased injection of £120 million in equity into Bord na Mona to eliminate the company's huge debt for which I secured the Commissioner's approval;

. the second GSM operator entering the market within weeks from now;

. the KPN Telia/Telecom Eireann strategic alliance put in place;

. a vast reduction in telephone charges;

. the successful implementation of the cost and competitiveness programme at the ESB;

. encouraged CIE to face up to the reality of the marketplace;

. the stability brought to the industrial relations situation at Team Aer Lingus;

. strong support for the development of our state and regional airports;

. the launch of a public consultation process for the Light Rail project and publication of the draft legislation to create a legal framework for the project;

. my initiative of a major strategic review of the future of An Post, completed and approved by the board.

Why I chose to resign

So now, and finally, to why I chose to resign. To fully understand why I chose this course of action, the House should remember the role I played in forming the Government in late 1994. My party had been in opposition for more than seven years and the country was faced with the prospect of a permanent Fianna Fail government where the only change would be that of their coalition partner. I was determined that this cycle be broken.

From my discussions with the Lab our Party at that time, I developed a deep respect for their leadership. I became convinced it could form a good working partnership with Fine Gael. When Democratic Left joined these discussions, I could see the potential for a competent government based on trust. This is what the country has had for the past two years.

In Government there are three genuine parties committed to policies. They have the practical courage to accommodate their partners deeply held views. This is in such marked contrast to the alternative facing the people.

This is a good Government. Our country is prospering. There is no clear point of principle which the Opposition can find to tarnish the Government. In the absence of real debate on substantial issues, politics has descended to vulgar abuse.

The decision to resign was mine and mine alone. I wanted to do right by the Government. Politics moves at high speed. Any procrastination or delay by me would have damaged the Government.

It was just not possible for me as a minister to answer the plethora of questions in the charged atmosphere that prevailed that weekend. It was just not possible to provide the commercial answers in that sort of time.

I felt it would not have been possible - while I was a minister - to explain what I genuinely believe to be a proper and legitimate transaction but nevertheless a complex one. I was satisfied that my business relationship with Dunnes Stores would be used in a political way to destabilise the Government. This political motivation would led to the Opposition asking endless questions while perhaps accepting none of the answers.

Also, from my own extensive involvement in the European presidency, I knew it was critically important in the preparation for the highlight of the Irish presidency - the Dublin summit - that the Government must not be deflected by a matter of this kind.

Having put so much work personally into bringing the Government together, I above all people felt that nothing should be allowed to destabilise it or to distract public attention from its work. For those reasons, on Saturday, November 30th, I chose to resign. I rang the Taoiseach and asked him what time that day his busy schedule would permit a meeting at which I could formally tender my resignation.

As regards my political life - and despite acres of newsprint and hours of radio and television coverage - nothing has emerged which demonstrates or gives actual testimony to any impropriety in carrying out my political duties. Nor will it. It does not exist. There is no impropriety in my political work.

Yes. I am bruised, but my spirit, my commitment and determination are as strong as ever.

I acknowledge the generosity of spirit shown by many TDs - including some on the opposition benches. In particular, I greatly value the depth of support and encouragement shown by the people of Tipperary. This has provided comfort to my family and myself over these difficult weeks.

I will continue to serve the people who I am honoured to represent in as diligent and as effective a manner as I can. I look forward to offering myself for re-election to this House. It is the people of North Tipperary who will at the next general election be the final arbiters on this matter.

I convey my good wishes to Alan Dukes - my successor in the Department of Transport, Energy & Communications. He will bring his acute intelligence and widespread ability to the benefit of Government.

As I said at the outset, ideally, I would have like to have made this statement earlier. Indeed, I would have liked the message to be much more simple and therefore easier to communicate in this era of the sound-bite and banner headline. I will, in due course, if required, co-operate fully with and answer questions to any committee of this House established to examine the Price Waterhouse report.

In conclusion, let me assure you of this. What you have heard is the truth - plain but not simple.