Parties deny O'Donnell threatened to quit over levels of overseas aid

Fianna Fail and the Progressive Democrats have moved to defuse the question of the resignation of the Minister of State for Foreign Affairs, Ms Liz O'Donnell, over Ireland's level of overseas aid.

Spokesmen for both parties last night denied that Ms O'Donnell had threatened to quit her post unless the aid budget for next year increased in line with Government targets.

Though the Estimates have been agreed and will be published next Wednesday, the spokesmen suggested that room for manoeuvre existed between now and Budget day, which is December 2nd.

Adjustments were often made to the Estimates after they had been cleared by Cabinet, they added.

"This is ongoing in an effort to resolve it satisfactorily . . . We are trying to reach an accommodation," a Government spokesman added.

Sources in the Progressive Democrats said that, while the Tanaiste, Ms Harney, approved the Estimates at Cabinet, she was "hoping for change between now and Budget day".

Ms O'Donnell, who has already discussed the matter with the Taoiseach, Mr Ahern, was not available for comment on the matter last night.

The issue of resignation was first raised by Ms O'Donnell in an interview on RTE's News at One yesterday.

Pressed several times by the interviewer, Mr Sean O'Rourke, to say whether the overseas development aid budget was a point of principle on which she would resign, Ms O'Donnell finally responded: "I'm not ruling out that possibility."

She had made her position "crystal clear" in correspondence with the Minister for Finance, Mr McCreevy, and the Taoiseach yesterday morning.

Asked if she would put her job on the line over this, Ms O'Donnell said it was serious enough for her to state that she was not supporting the current position of her own Department on the Estimates.

There was, however, a "window of opportunity" for the Government to change its mind in this regard.

Pressed on whether or not she was ruling out the possibility of resignation, she replied that she was not.

It is generally believed that Ms O'Donnell was caught unaware by the question of a possible resignation, rather than trying to carve out a separate PD identity on development aid policy.