The Government will examine "in the coming days" the options available to inquire into the appointment of a public relations consultant by the Minister for Transport, Mr Cullen.
The Waterford-based PR consultant, Ms Monica Leech, has earned €300,000 since the Department of the Environment hired her shortly after Mr Cullen took up office in June 2002. He was moved to Transport in the September reshuffle.
Under Dáil questioning yesterday by the leader of the Labour Party, Mr Pat Rabbitte, the Taoiseach acknowledged that the controversy over the appointment "will not go away". The Public Accounts Committee will inquire into the matter, said Mr Ahern. "If it does not, I do not have a problem with it being investigated by another forum.
"This is not an unreasonable suggestion since there has been a considerable interest in the matter."
Last night Mr Cullen's spokesman said: "He welcomes this. He believes that this offers the means to address this matter comprehensively and conclusively. He is satisfied that this will bring this to an end."
Later it emerged that the Taoiseach had not yet given thought to which body would handle the inquiry, one of which could be the Standards in Public Office Commission. The Labour leader suggested that the Ombudsman, Ms Emily O'Reilly, or a former secretary general to the Cabinet could also carry out the inquiry.
Under the contract Ms Leech is paid €800 a day, plus 21 per cent VAT, and not the €1,200 a day previously mentioned.
"If the procedure had not been a single-tender contract, then it would not have looked the way that it does," said the Taoiseach, in remarks that appeared less than supportive of Mr Cullen.
Meanwhile, two trade bodies yesterday called for new rules to govern the awarding of State PR and advertising contracts.
Under the proposals, State bodies would choose four companies to tender and offer full details up front about the requirements of the contract. Currently, too many State bodies fall "way short of the mark", said the Public Relations Consultants' Association and the Institute of Advertising Practitioners in Ireland.