Ahern says tax, ethics issues do not apply

UK payment: Taoiseach Bertie Ahern said yesterday he had no tax or ethics questions in relation to the £8,000 he received from…

UK payment: Taoiseach Bertie Ahern said yesterday he had no tax or ethics questions in relation to the £8,000 he received from a group of Irish emigrant businessmen in 1994 while he was minister for finance.

Speaking in Ballyjamesduff, Co Cavan, Mr Ahern said the money was given to him in October 1994 after he addressed a group of 25 businessmen in Manchester. He was not liable to pay tax on the amount because, prior to 1999, receipt of financial gifts from outside the State was not taxable.

He said he attended the dinner in a private capacity rather than as minister for finance and that he was "promoting the country in my own spare time".

"So no official script, not an official function, not in my capacity as minister, paid my own way, spoke at the function," he said. "And on one occasion the assembled group, about 25, plus a group who were with me in Ireland, gave me the sum of money that I mentioned.

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"That's all that happened. I checked the ethics of that under the regulations some years ago when I was checking these things, and it was found to be in order. And I checked the tax position because a sum like that from outside the State until 1999 wasn't taxable. So that was it. I can't remember what I said on the night, but other than that, there's no more to that. If there's any question I'd be glad to clarify it."

He told journalists during a question-and-answer session that he lodged the money in his own personal bank account. Asked whether it had been wrong to accept such a sum for personal use he replied, "No". He believed it did not breach Cabinet guidelines of the time, which stated that ministers should not accept expensive gifts arising out of their duties.

"No I don't, and I've checked it with those who arbitrate in these matters. And did several years ago when I put all of these things into the tribunal."

"If it was after 1995 you would have to declare it, which I would," he said in reference to ethics legislation which came into force that year.

Asked whether he knew who the businessmen were, he said he knew "some of them from back over the years" but did not give any names.

"Some of them are very well known in Manchester . . . They're hugely helpful to the Irish community in Manchester. They're part of the community and I would have regular enough contact with them when I go over to matches." Asked if there was any connection between the Manchester payment and the Dublin loans of the same period, he said no.

However, he added that some of his Dublin friends who were Manchester United supporters would also have attended the function. These included Senator Tony Kett.

Mr Ahern also said it was the Irish friends who organised the collection of the money.

"Needless to say it was not something I asked for. It was totally a surprise to me that they did it. But for correctness I decided to put it on the record the other day." Asked why he had not revealed the payments before, he said it was "because the tribunal told me that anything I reveal is confidential. The point is I'm not allowed." He also indicated he was happy to have a Dáil debate on the matter with the Opposition.

"If they want me to say what I've said to you, and if you have any other question, I'd be very glad to answer it."

The Taoiseach also indicated that the Manchester payment was the only one similar to the Dublin loans. "I went back through my records since 1977 and this was the only one I thought was like that. So for correctness I mentioned it. I mean, it's not anything to do with the other things, but it was around the same time."

He added that he frequently refuses offers of gifts from the organisers of functions. "And I would regularly say I'd rather give something to a nominated charity, and that is something I would regularly do.

"If I do international television station things, I'd often get a fee for it, and I would always give it to charity as Taoiseach. I'd say several times a year people say to me, 'we would like to give you this or a present or gift'. And I would say, listen, under the rules it's better not, and give it to a nominated charity."

The Taoiseach said it was "sad" that the media had not investigated the source of the original leak which led to the story in The Irish Times.

"I still think there [ is an] issue of how a tribunal which has been well resourced and there with the confidentiality rules, that the affairs of anyone - in this case it happens to be me - how that comes out and how that's almost ignored, as if that's a feat, a success."