Decision day for Haughey and the tribunal

MR CHARLES HAUGHEY has three legal options open to him today to deal with the disclosure by Mr Noel Smyth - Mr Ben Dunne's solicitor - that he had five separate conversations with the former Taoiseach about £1.3 million Mr Haughey allegedly received from Mr Dunne.

The Dunnes payments tribunal had received no indication up to late last night as to which course of action Mr Haughey intends to follow.

The tribunal's legal team is prepared to submit that the conversations between Mr Smyth and Mr Haughey are material evidence.

The tribunal chairman, Mr Justice Brian McCracken, is due to rule today on an application by counsel for the tribunal that Mr Smyth should give details of his conversations with Mr Haughey. On Friday, Mr Justice McCracken deferred a decision on the application until 1.45 p.m. today to allow Mr Haughey to respond.

Mr Haughey can either ignore the tribunal, as he has done to date; he can go to the High Court to assert that the contents of his conversations with Mr Smyth are confidential; or he can maintain to the tribunal that the contents of the discussions are confidential by virtue of the lawyer/client relationship. If he chooses the third option he will be required to appear in person.

Mr Smyth told the tribunal on Friday that no such lawyer/client relationship existed with Mr Haughey when the conversations took place. However, he said that he would not wish to reveal the details unless directed to do so by Mr Justice McCracken.

The tribunal then adjourned and forwarded an envelope containing Mr Smyth's account of the meetings to Mr Haughey at his Kinsealy home so that he could consider further whether he wished to be legally represented.

It is known that the former Taoiseach engaged a team of lawyers after the tribunal hearings began. They are Mr Eoin McGonigal SC, Mr Paul Gilligan SC and Mr Shane Murphy.

The tribunal is planning to sit in London on Thursday to take evidence about the transfer of money to bank accounts in Britain.

The Taoiseach, Mr Bruton, is due to give evidence this morning about contributions amounting to £185,000 niade by Mr Dunne to the Fine Gael party.

Four Fine Gael Ministers - Mr Alan Dukes, Mr Michael Noonan, Mr Ivan Yates and Mr Sean Barrett - are scheduled to give evidence after Mr Bruton testifies. Mr Sean Haughey, of Fianna Fail, is also due to give evidence today.