The government is under strong pressure to consider including the substantial payment made to the Minister for Foreign Affairs, Mr Burke, in 1989 in the terms of reference for a new tribunal of inquiry.
As the Government Chief Whip, Mr Seamus Brennan, began discussions with opposition party whips yesterday on the remit of a new inquiry, Fine Gael, Labour, Democratic Left and the Green Party all demanded that the matter be considered for inclusion in the scope of the next tribunal.
Labour and Democratic Left said that Mr Burke should be asked to make a statement to the Dail and answer questions on the matter before a decision is made on whether a tribunal should investigate.
Mr Brennan will report to the Cabinet next Tuesday on his discussions with the whips, and a decision will then be taken on whether the Government will continue the consultations or simply draw up its own terms of reference, according to Government sources. A decision to draw up its own rules for the new tribunal would meet fierce opposition reaction and could precipitate a very tight Dail vote on the issue on September 11th.
Both the Labour leader, Mr Dick Spring, and the Fine Gael whip, Mr Jim Higgins, yesterday rejected the Government's view that the issues relating to Mr Burke should be excluded from the tribunal's terms of reference.
In a statement, Mr Spring rejected the view expressed yesterday by the Tanaiste, Ms Harney, that because the Garda was investigating the matter, it could not be investigated by a tribunal.
This view was "nonsensical", he said, and was shown to be so in court decisions relating to the beef tribunal in 1991. Therefore "the Dail would be perfectly entitled in law to include any matter about Ray Burke which it wished to in the terms of reference", he said.
He added that his party would be insisting that the legislation to enable a referendum on Cabinet confidentiality be passed before any new tribunal was set up.
The Labour Party chief whip, Mr Brendan Howlin, has asked Mr Brennan to ensure that Mr Burke makes a full statement to the Dail next week and that he be prepared to answer questions "as a first step in this matter".
Fine Gael's chief whip, Mr Higgins, said it was "vital" for the payment to Mr Burke to be investigated by a new tribunal. The contribution was "by any standards, a huge contribution".
Democratic Left's whip, Mr Pat Rabbitte, said it was fair and reasonable for Mr Burke to be heard and questioned in the Dail. "However, if the affair remains unclear or unsatisfactory after such a Dail examination, then this important matter must be incorporated into the terms of reference of the new tribunal."
His party wanted the "money trail" to be inquired into first "to flush out Mr Haughey's other main benefactors". The tribunal should then be allowed to decide whether to investigate specific matters such as decisions relating to the beef industry, the sale of the Carysfort land and the "passports for sale" affair.
The Green Party TD, Mr John Gormley, said his party would also insist that payments made to Mr Burke be included in the tribunal's terms of reference.
Mr Burke has said that he received a payment of £30,000 in 1989 from a construction company, Joseph Murphy Structural Engineering (JMSE), as a political contribution. Fianna Fail sources have said that Mr Burke gave £10,000 of this to party headquarters.
Mr Burke has rejected claims that he received two donations of £40,000 each, one from JMSE and one from Bovale Developments Ltd. He has issued legal proceedings against Mr James Gogarty, the former executive with JMSE, who has claimed that Mr Burke did receive these two contributions.
Mr Gogarty has not yet signed a statement for investigating gardai detailing his claims. The Director of Public Prosecutions has offered him limited immunity from prosecution if he signs a statement. Mr Gogarty's reluctance so far to do so is not related solely to the issue of immunity, according to sources.