Callely resignation sparks angry exchanges in Dáil

There was uproar in the Dáil today after the Taoiseach said he had accepted the resignation of Ivor Callely following a series of embarrassing controversies for the Government.

The former Minister of State for Transport, who maintains he has done nothing wrong, reluctantly left his post after Mr Ahern threatened to sack him yesterday. The Cabinet met this morning to discuss the latest controversy dogging the junior minister.

It was disclosed yesterday that top building firm John Paul Construction had paid for the painting of Mr Callely's Clontarf home when the same company was then refurbishing the Dublin office of the Eastern Health Board. Mr Callely was chairman of the board at the time. Mr Callely was not charged for the work.

Mr Ahern told the Dáil this morning, before the start of business: "I wish to announce for the information of the Dáil that I have today accepted the resignation from office of Deputy Ivor Callely, Minister of State at the Department of Transport."

In a statement released by Mr Ahern's office the Taoiseach added: "He did so in the public interest and in view of the fact that the ongoing controversies made it impossible for him to effectively and productively carry out his Ministerial duties.

"I thanked the deputy for his dedicated contribution to the work of the Government in his roles in the Department of Health and Children and the Department of Transport over the past three years."

In the Dáil, Opposition parties angrily demanded, in vain, that they be given time in the House for a debate on the resignation and demanded that Mr Callely make a statement in the chamber.

The Taoiseach's planned speech on yesterday's Budget was delayed for an hour and a half amid a barage of protest from Opposition benches. Labour deputy Seán Ryan was asked to leave the House during angry exchanges but Mr Callely remained silent throughout.

Mr Callely has been under intense pressure since the controversy surrounding resignations of civil servants from his office and an offer made by the junior minister of a car to a political staff member to stop him stepping down.

Minister of State Tom Parlon last night questioned the source of the story and claimed that the controversy may be politically motivated. "It would be a bit much to suggest that it was a pure coincidence that the story breaks at 8am on the morning of the best Budget this Government has ever seen," the Progressive Democrats TD said.

On Pat Kenny's radio show this morning - minutes before this morning's announcement in the Dáil - Mr Callely said he had put his position to the Taoiseach and had asked him to investigate a "false, mischievous and sinister campaign" against him.

Mr Callely met Mr Ahern in Government Buildings yesterday afternoon and again this morning. It is understood they had talks for over an hour this morning.

The Dublin North TD has refused to accept he was involved in any wrongdoing. Yesterday, in a statement, he said: "I am particularly angry about the unsubstantiated innuendo that as a member of the Eastern Health Board I might have in any way favoured John Paul Construction in a public tender process".

"The tendering process is beyond reproach and to suggest that one member of a 38-member board could influence any such contract is not credible. Indeed the initial contract was awarded before my time as chair."

Mr Callely said John Paul snr, a friend, had helped him out after his painters let him down at short notice. He said he had expected a bill at the time and had written to the company now seeking to settle the matter.

The company confirmed yesterday the work was undertaken by a painting subcontractor, and was billed to and paid for by John Paul Construction. "John Paul Construction did not receive any payment or other benefit from any party in relation to this work," a company statement said.

Mr Callely said he had contacted the company to see if any bill was outstanding.