The Tánaiste, Ms Harney, secured some €70,000 in the settlement of her libel action against the Sunday Independent, The Irish Times has learned.
The Tánaiste said after the agreement on Wednesday that her settlement, less her legal costs, would go to charity. Her official spokesman said yesterday that she had decided to give the money to the Peamount day care centre in Newcastle, Co Dublin.
The spokesman declined to comment on the settlement sum, which arose from a front page report in the paper in January 2001.
Independent Newspapers said after the settlement that it was happy to confirm that there was no suggestion that Ms Harney had been the recipient of payments of a corrupt nature.
The extent of Ms Harney's legal costs is unknown.
Because libel actions are expensive, the donation to the day care centre will be significantly less than than settlement sum.