Opposition left baffled byactions of PDs

Other reaction: The Progressive Democrats' handling of events in Leinster House yesterday has caused astonishment among the …

Other reaction: The Progressive Democrats' handling of events in Leinster House yesterday has caused astonishment among the Opposition amid doubts about the junior Coalition partner's intentions.

Following a low-key performance by Fine Gael leader Enda Kenny, FG decided to adopt "a wait-and-see approach" about Mr Ahern's finances until more information emerges.

Unless developments emerge quickly, Mr Kenny intends to say little more until Sunday when he will appear on a number of television programmes, including RTÉ's Week In Politics.

Labour deputy leader Liz McManus said the Taoiseach had humiliated the Tánaiste "and had made a ship of fools" of the Progressive Democrats.

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"The relationship between Taoiseach and Tánaiste is crucial to the success of a government. Can the public really have any confidence in that relationship in the light of what has happened?"

The Taoiseach's "credibility is now in shreds" following his performance in the Dáil yesterday, and the absence of Mr McDowell and Minister for Health Mary Harney.

"Serious questions arise about the survival of the current Government. The Taoiseach is entitled to buy his house from whoever he likes provided the full market value was paid, but what is involved here is the obligation on the Taoiseach to give a comprehensive and fully-truthful account of events when he comes into the Dáil to answer questions."

Green Party TD John Gormley said the apparent conflict between the Taoiseach and former tánaiste Mary Harney "is the most serious crisis yet for the Coalition partners", and "a real test of the PDs' mettle".

Minister for Finance Brian Cowen dismissed reports of tensions in Government. Speaking to RTÉ news last night Mr Cowen said people were now "tired" with the controversy and wanted the Government to get on with its work.

Minister for Education Mary Hanafin defended the Taoiseach's comments on his house and his suggestions in the Dáil that former tánaiste Mary Harney was previously aware of the personal loans he had taken from friends in 1993 and 1994.

"Well of course I believe the Taoiseach and what the Taoiseach has said, and the information that he gave the Dáil this morning. I don't believe there's any conflict at all."

In relation to Mr Ahern's statement about paying full market rent and the full market price on his house, Ms Hanafin said he "dealt with things very honestly".

Minister for Enterprise Micheál Martin also predicted there would be no difficulties with the Progressive Democrats.

He said he believed there was and always had been an innocent explanation for the dealings involving Mr Ahern, including the revelations concerning Mr Wall. "I'm very clear and the fundamental point one must bear in mind here all along is that there was no abuse of office in any shape or form by the Taoiseach."

Mark Hennessy

Mark Hennessy

Mark Hennessy is Ireland and Britain Editor with The Irish Times