Ahern to issue statement in answer to McDowell

The Taoiseach is to make a statement later this week detailing the financial background to his acquisition of a house in response…

The Taoiseach is to make a statement later this week detailing the financial background to his acquisition of a house in response to a demand for clarification from the leader of the Progressive Democrats, Michael McDowell, write Stephen Collins, Mark Hennessyand Liam Reid.

The information in documents seen by the PDs has caused deep disquiet to the party leadership, particularly as Mr McDowell accepted an assurance from Mr Ahern last October that he had been told the full story.

"The picture he gave me differs very substantially from the picture now being given by him to the Mahon tribunal," Mr McDowell said yesterday.

The contents of the documents caused the PDs to give serious consideration to withdrawing from the Government.

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Mr McDowell hinted at the nature of his concerns at a press conference yesterday when he said Mr Ahern told him last autumn that the purchase of his house in Drumcondra from a Manchester businessman in the 1990s was "an arms-length transaction on commercial terms for full value".

After an intense internal debate the party decided not to withdraw but to seek a statement from the Taoiseach before the election.

"I believe that in any democracy, elected leaders must be accountable to the people in respect of standards of behaviour and truthfulness which impinge on their public duties. I believe therefore it is essential that the Taoiseach must make a comprehensive statement addressing all the new information now in the public domain and that he must do so before the people cast their votes on May 24th," said Mr McDowell.

Later yesterday the Taoiseach met his three most senior Ministers, Brian Cowen, Dermot Ahern and Micheál Martin at Fianna Fáil election headquarters. A decision was taken that the Taoiseach would make a full public response.

Minister for Finance Brian Cowen said the selective publication of information was wrong. "However, the reality is that the impact has been such that the Taoiseach believes he should make a complete response concerning his house in advance of the tribunal hearing," said Mr Cowen who added that Mr Ahern would ask his legal advisors to bring together all the relevant information so that he could prepare his response.

The Taoiseach said later that he would not meet his advisers until Wednesday at the earliest, after he returned from the opening of the Northern executive.

In a further sign that Fianna Fáil's post-election coalition options are narrowing, Green Party leader Trevor Sargent said no party would be prepared to serve in government with Mr Ahern because of questions over his personal finances. He described Mr Ahern as "a dead man walking" politically.

During a dramatic press conference yesterday, Mr McDowell, who was not accompanied by any other member of his parliamentary party, called on Mr Ahern to give a "comprehensive and credible" account of his financial matters before polling day.

The press conference followed a three-hour meeting in Kildare on Saturday evening involving him, Mary Harney, PD deputy leader Liz O'Donnell and party president Tom Parlon. Ms O'Donnell was strongly in favour of quitting, as was Ms Harney, though to a lesser extent, while Mr McDowell tried on Saturday to remain more neutral.

However, Mr Parlon was strongly opposed, and this view was shared by other rural members of the parliamentary party.

The controversy led Fine Gael leader Enda Kenny and Labour Party leader Pat Rabbitte to say that only they could now offer a "real, credible" government to voters.