Ahern rejects Noonan claims over 'pick-me-up' payments

The Taoiseach has rejected suggestions made the Fine Gael leader Mr Michael Noonan that Fianna Fáil may have questions to answer to the Revenue Commissioners over so-called pick-me-up payments.

It follows the admission last night by Fine Gael that it gave £120,000 in under-the-counter payments to its staff over a nine-year period and that it received £90,000 in pick-me-up payments from party supporters in 1989, 1994 and 1995.

This is the mechanism whereby goods and services are supplied to political parties but are paid for by party supporters or their companies. The companies can then claim these payments as business expenses, although this practice is illegal.

Fine Gael paid £111,110 to the Revenue in 1999 in respect of unpaid PAYE and PRSI, interest and penalties arising from the payments. However the Revenue Commissioners may yet seek to impose further penalties. Fine Gael insists it has made a full and final settlement.

The cash payments to staff were made in respect of staff overtime, Christmas bonuses and payments to temporary workers.

Mr Ahern told RTÉ News this morning that he was "aghast" at Mr Noonan’s suggestions about pick-me-up payments and that Fianna Fáil had resolved the matter with the Revenue Commissioners in 1998, three years before Fine Gael.