Taoiseach questioned Michael Bailey about payment allegations

The Taoiseach personally questioned the developer Mr Michael Bailey about allegations of payments to Mr Ray Burke two days before the formation of the current government, the Flood tribunal heard yesterday.

The Minister for Social, Community and Family Affairs, Mr Dermot Ahern, said the Taoiseach spoke to Mr Bailey in June 1997 at the same time that Mr Ahern was sent to London to interview Mr Joseph Murphy jnr about the allegations.

Mr Dermot Ahern said he was unaware that the Taoiseach had spoken to Mr Bailey until "the relatively recent past".

He said in June 1997 he had been told merely that contact would be made with the developer simultaneously to his meeting with Mr Murphy.

He added he was not aware what was discussed between the Taoiseach and Mr Bailey.

Mr Colm Allen, for Bovale Developments, told the tribunal Mr Bailey would be giving evidence that he was contacted by Mr Cyprian Brady, a member of the Taoiseach's political staff in his Drumcondra constituency headquarters. Mr Brady informed Mr Bailey that the Taoiseach wished to speak to him about the allegations. The Taoiseach subsequently made contact by telephone.

Mr Dermot Ahern said he was not aware of this at the time. "I only became aware of who contacted Michael Bailey in the relatively recent past when the Taoiseach intimated to me that he was putting in, through solicitors, a statement to this tribunal in which he would be indicating that it was he who had made contact with Michael Bailey on the same day as I was in contact with Mr Murphy".

Mr Allen asked whether the Taoiseach had sent Mr Dermot Ahern to London on June 24th 1997, two days before the formation of the Government, because he was considering whether or not to appoint Mr Burke to the Cabinet.

Mr Ahern replied "that was one of the issues that was pressing on his mind". However, he "was not privy" to the Taoiseach's deliberations at the time. "I had no conversation with Bertie Ahern as to whether or not Ray Burke would be in the Cabinet or not on any occasion prior to that". Mr Ahern said "I was asked to inquire of Mr Murphy and I did that and I reverted back to Bertie Ahern. As regards the composition of the Cabinet, I had no discussion with him".

Mr Ahern said he did not investigate allegations about Mr Bailey and nor was he asked to do so. He said the Taoiseach indicated on the Saturday before the June 24th meeting "that contact would be made with Mr Bailey at the same time as I was meeting Mr Murphy". However, the Taoiseach did not discuss the nature of that contact at the time.

Mr Allen asked whether Mr Bailey had been questioned because of the allegations relating to the builder and Mr Burke.

Mr Ahern replied "that was my impression, because Mr Bailey's name was mentioned, maybe not as much as JSME and Murphys in the media, but the line of action as it was set out by the Taoiseach on that particular day was that simultaneous contact will be made".