Dunnes Stores had made outlandish allegations to try to show improper reasons behind the Tanaiste's Mary Harney's appointment of an authorised officer by the Minister for Enterprise, Trade and Employment, Ms Harney, counsel for the Minister told the High Court yesterday. The authorised officer is investigating the affairs of two Dunnes Stores companies.

Mr Eoghan Fitzsimons SC said the Minister had at all times acted within her statutory authority. The only intention behind the Dunnes' court application was to prevent an authorised officer from inquiring into the books and documents of the two companies.

Counsel said Dunnes had created an aura suggesting such an inquiry was not necessary because the company already had all its affairs "picked over". The proceedings were an attempt to prevent the Minister exercising her power on behalf of the people to investigate matters of concern.

Earlier, secretary general of the Department of Enterprise, Trade and Employment, Mr Paul Haran, said he had had a conversation with the editor of the Sunday Times and was told Dunnes' lawyers were informed they were wrong in their allegations that the Department was leaking confidential information. During the nine-day hearing, Dunnes Stores has alleged that confidential information collected by an authorised-officer, Mr George Maloney, was leaked to the media and formed the basis for a number of articles, including reports in the Sunday Times.

The company is challenging the Minister's decision to appoint Mr Gerard Ryan as another authorised officer to examine the books and records of two Dunnes companies. The hearing before Mr. Justice Kinlen resumes on Tuesday.