Coalition denies relations have been damaged

Both Government parties last night rallied together to insist that the Coalition has not been destabilised and that relations…

Both Government parties last night rallied together to insist that the Coalition has not been destabilised and that relations have not been damaged by the recent controversies arising from political donations.

A Government spokesman said "there is absolutely no indication of any difficulties in working relations between the parties in Government".

Echoing his message of unity, the Minister of State for Foreign Affairs, Ms Liz O'Donnell, said she found the continuous reports of instability "quite tedious". "The reports are speculative and non-specific. I cannot see that we are in an unstable situation at all. We are working well. Tribunals have been established to deal with all the allegations. It is very unhealthy to be expected to speculate on the basis of non-specific allegations," she added.

A spokesman for the Progressive Democrats said that trust between the Taoiseach, Mr Ahern, and the Tanaiste, Ms Harney - who is on business in the US - "remains very good and intact".

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The Government spokesman described as "pathetic" a statement from the Democratic Left leader that the Taoiseach and his Ministers have been taken up with more and more time attempting to "limit the damage arising from the growing series of disclosures and allegations relating to former and current leading members of Fianna Fail".

According to Mr Proinsias De Rossa, there was now a real danger that the Government was becoming paralysed by anticipation of the next political thunderbolt that would hit it.

However, the spokesman accused him of criticising the tribunals, "and then trying to dress it up". Mr De Rossa said it was regrettable that nine months from the Dail motions establishing them, the Moriarty and Flood Tribunals were not in a position to start hearing evidence.

The Taoiseach was yesterday in contact with the Public Offices Commission about political contributions he declared last year. He returned a total of £3,000 for the 1997 general election but made no reference to a house, St Luke's, which he uses as a political base in Drumcondra, or to the O'Donovan Rossa Cumann which runs a dinner to cover the costs of his constituency operation.

A spokesman said Mr Ahern believed he had made a full declaration to the commission. He used St Luke's, which was owned and run by five Fianna Fail trustees, mainly for government business. All the money from the £170-a-plate dinner went to his local cumann and was therefore not a matter for him to declare.

Meanwhile, changes to the terms of reference of the Flood Tribunal - to allow the investigation of £30,000 payments to Mr Ray Burke by Rennicks Ltd - are expected to be sent to the Opposition parties ail. soon.

Cabinet will today discuss the Standards of Public Office Bill, designed to deal with issues of political impropriety, and the legislation will be sent into committee for discussion.