The Progressive Democrats are maintaining a position of qualified support for the Government despite the Taoiseach's strong rebuttal of the Gilmartin allegations in the Dail.
"As of now, we have no reason not to believe the Taoiseach," a spokesman for the Tanaiste, Ms Harney, said yesterday.
But Mr Tom Gilmartin, the property developer whose allegations have led to the current political controversy, said last night that Mr Ahern's statement in the Dail was "inaccurate in a number of respects". He said the Taoiseach had not provided an accurate account of why a councillor was sent by him to see Mr Gilmartin about his planning proposals, and that he would be able to provide evidence that his own version was correct.
Mr Gilmartin said he believed that the Tanaiste did not want to disbelieve Mr Ahern, because "it would cost her power".
Mr Gilmartin told The Irish Times that following the Taoiseach's statement in the Dail he was now "more determined than ever" to come before the Flood tribunal to give evidence.
Speaking from his Luton home, he said he did not want to "bring Bertie down" as reported in some newspapers, but he had been told by his lawyers that if he did not give evidence before the tribunal he could be forced to do so in a court in Britain. "Everything I say will be backed up by fact," he added.
However, Mr Gilmartin also said the Taoiseach was correct when he stated in the Dail: " I did not ask Mr Gilmartin in September 1989 or at any other time to make a financial contribution to Fianna Fail or to me".
Mr Gilmartin said this was an accurate assertion. "He did not ask for a contribution. He asked if I had given one," he said. The strain between the Coalition parties remained in evidence yesterday. For the first time since the formation of the Coalition, the Government Chief Whip, Mr Seamus Brennan, told party whips yesterday that "there could be an election. The Government was never in such a serious position before."
With Ms Harney seated silently beside him, the Taoiseach told the Dail that he was certain he had not asked Mr Gilmartin for a financial contribution "to Fianna Fail or to me".
"It is not my way of doing business," Mr Ahern said. Since Mr Gilmartin had made no financial contributions to him, he added, he had no reason to believe last year that he had any relevant information concerning a meeting with him that would be of significance to the Flood tribunal. He had not so far been contacted by the tribunal about Mr Gilmartin's allegations.
Turning to the allegation that the EU Commissioner, Mr Padraig Flynn, received £50,000 from Mr Gilmartin, he said when the allegations were first made last September, a former official in Fianna Fail headquarters, Mr Sean Sherwin, came forward to state that £50,000 had not been received by the party. He was subsequently interviewed by the tribunal.
Mr Ahern also outlined details of a letter written by the party's general secretary, Mr Martin Mackin, on behalf of the trustees, to Mr Flynn last October seeking information about the £50,000. "No reply to the letter, however, has been received," he added.
In subsequently questioning, Mr Ahern admitted that he had not asked Mr Flynn since, "because any of the meetings I had with Commissioner Flynn were about EU business in relation to Ireland".
He said if tribunal witnesses were interfered with, it would be entirely wrong and legally wrong.
He did not know if Mr Gilmartin's allegations on this matter were true.
A formal PD statement, after the debate, said the Taoiseach had accounted to the Dail for a series of allegations made about senior figures in Fianna Fail. These allegations would continue to be considered by at least one, if not two, tribunals and there could be further disclosures in the media. "Faced with this reality, there will inevitably be strains and unease in the relations between the two parties in Government."
A PD source moved later, however, to soften their stance, acknowledging that Mr Ahern had put in a good performance in the Dail.