Lowry to make statement today

MR Michael Lowry will attempt to explain to the Dail this afternoon the circumstances surrounding payments of £208,000 by Dunnes Stores to build an extension to his home in 1993

He has sought leave to make a personal statement at 3.50 p.m. today, for an unprecedented 40 minutes, to offer the long-promised explanation for the payments.

But, 19 days after he was forced to resign as minister for Transport, Energy and Communications over the controversy, his former Coalition colleagues are fearful that he could cause further damage to the Government. It is understood that senior Fine Gael sources pleaded with Mr Lowry to make a shorter statement and offer "a mea culpa" to the Dail.

Mr Lowry, who was still preparing his statement last night, is also believed to have asked for the Taoiseach, who returned from his trip to the United States overnight, to sit beside him while he makes his statement.

The former minister was forced to offer an explanation for the payments he received from the former chairman of Dunnes Stores, Mr Ben Dunne, after eight Labour backbenchers called on him to account for his actions last week. The Fianna Fail leader, Mr Ahern, also suggested the question now arose as to whether Mr Lowry "is a fit person to be a member of this House".

Meanwhile, the Dail's Committee on Procedure and Privileges established the sub-committee yesterday which will receive the report from Judge Gerard Buchanan after Christmas, listing the names of politicians who are named as receiving financial donations from Dunnes Stores in the Price Waterhouse report. It will hold public hearings.

The sub-committee will be chaired by Mr Michael Bell, chairs man of the parliamentary Labour party. It will also comprise Mr Noel Dempsey (FF), Mr Jim O'Keeffe (FG), Mr Des O'Malley (PD) and Mr Eric Byrne (DL).

Before the Dail breaks for the Christmas recess this afternoon, Mr Lowry will be required to explain why Dunnes Stores paid the £207,820 bill for restoring and extending his Georgian home on 35 acres at Glenreigh, Holycross, Co Tipperary, in 1993.

Mr Lowry, who was chairman of the Fine Gael parliamentary party and national director of party fund-raising at the time, was a majority shareholder of Streamline Enterprises Ltd, a company which supplies refrigeration services to Dunnes Stores.

An internal audit, conducted by Price Waterhouse for Dunnes Stores, showed that the £207,820 had been charged to work done on the Dunnes Stores premises in the Ilac Centre in Dublin.

Mr Lowry was forced to resign as minister on Saturday, November 30th, the day after thee Irish Independent revealed the payments.

In his resignation statement, Mr Lowry said the arrangements which he and his company entered into with Dunnes Stores "were and are entirely legitimate". As part of these arrangements, credit facilities were made available by Dunnes Stores from time to time to be subsequently repaid from after-tax income.