The Taoiseach strongly condemned the disclosures at the Flood tribunal. "There is no doubt about it that past events which have come to light have undermined confidence in politics," said Mr Ahern. "It is our job and duty as leaders to make sure that we restore that."

He said he accepted the suggestion by Fine Gael leader Mr John Bruton that the matter should be dealt with by way of "constructive dialogue" between the parties. He also acknowledged that proposals put out by Fine Gael and Labour had been helpful.

"We have dealt with an amount of legislation in this area, but we have to make clear that it is our determination to ensure that people's confidence in the democratic process is restored. I think we have worked hard across broad fronts to bring a more rigorous regulatory framework into public affairs. "Admittedly, there are other issues, like the lobbyists' Bill, which have not yet been addressed."

He said the work by the finance committee and the members' interests committee in bringing the legislation on the Standards in Public Office Bill would be available in the current Dail session. The Government was prepared to co-operate in amending existing legislation and determining what needed to be done relating to other legislation.

The matter was raised by Mr Bruton, who said there was an urgent need for political leaders to come to a practical and urgent agreement on the arrangements for the financing of politics.

Mr Joe Higgins (Socialist Party, Dublin West) said Mr Justice Flood should be asked to make an interim report before the Dail adjourned for the summer recess. He suggested that brown paper bags should carry a Government health warning, adding that parts of his constituency had been "grotesquely damaged" by planning.