Taoiseach Bertie Ahern will today call a meeting of the Cabinet to sack Minister of State for Transport Ivor Callely if Mr Callely does not resign, it emerged last night, writes Mark Hennessy, Political Correspondent.
Sources close to Mr Callely said he would meet the Taoiseach before the Dáil sits at 10.30am this morning, raising speculation that he would give Mr Ahern his resignation in order to save the Government from further embarrassment.
Clearly furious that the Budget had been partially overshadowed by the disclosure that John Paul Construction had paid for the painting of Mr Callely's house in Clontarf in the early 1990s, Mr Ahern said last night: "Ivor knows what I will do."
Meanwhile, The Irish Times has learned that Mr Callely breached the planning laws by converting a large garage at his west Cork holiday home into residential accommodation. He has now applied to Cork County Council for retention of this unauthorised use.
Mr Callely had a lengthy battle with council planners over the garage. They objected to its size and to its precise location in relation to his holiday home, near Kilcrohane on the Sheep's Head peninsula.
The Dublin North Central TD finally received planning permission for the garage in 1997, but the building has since been converted into accommodation, with two bedrooms and an upstairs store room.
Mr Callely yesterday first met Government Chief Whip Tom Kitt and the Taoiseach's top adviser, Gerry Hickey, followed by an hour-long meeting with Mr Ahern.
In the Dáil, Mr Ahern's irritation was clear: "Deputy Callely has worked hard in his job but he is surrounded by a number of controversies. Part of my standard is that I have a sense of fair play to listen to the deputy - but I am not impressed."
Despite the clear directions, Mr Callely appeared to continue to believe that he could survive politically until teatime, when he began to acknowledge that resignation or being sacked were possibilities. His refusal to go quietly and quickly was met with incredulity within Government Buildings, particularly after the Taoiseach clearly outlined the options during their afternoon meeting.
John Paul Construction confirmed yesterday that it had engaged a painting contractor to undertake work on Mr Callely's private residence.
It said the work was undertaken by a sub-contractor, Philip Lambert, who regularly undertook work for the company. "The work was billed to and paid for by John Paul Construction," it said.
Meanwhile, it has been learned that nearly 200 people, including leading names in property development, attended a golfing fundraiser, costing €2,500 for a team of four, for Mr Callely in the K Club in October.