The Government has appealed to the Labour Party to withdraw its Bill on donations to politicians until careful consideration could be given to the serious issues involved and a consensus reached.

In a private member's debate on the Electoral (Amendment) (Donations to Party and Candidates) Bill, the Minister for the Environment, Mr Dempsey, stressed that the Government was not opposing the Bill. "We simply seek to postpone its second reading until December 1st, by which time we can achieve, as far as possible, a well-thought out consensus on the issues which are before us."

He said that "on the face of it, a ban on corporate donations with compensatory public funding for political parties is a simple solution. However, there are some fundamental issues surrounding the concept of a ban on donations". There were major legal, practical and financial implications for the operation of the political process which had to be taken into account in any meaningful consideration of the process.

He asked how much public money would the measure cost. "In the current climate, would taxpayers be happy to see their taxes funding political parties? They are much more likely to say `We've found out that the politicians in the past were corrupt and you know what? They are making us pay to keep them honest'. Most people will know the reaction of the public to that."

The Minister said the Government's position was clear. "Our message is short and simple. It is unambiguous and unequivocal. Corruption or wrongdoing have no place in public life."

Mr Dempsey said the issues needed urgent and full consideration and "not a band-aid for one particular cut in the body politic". What was needed was a comprehensive and aspiration approach which "doesn't just say `you won't do this and you won't do that' but which articulates for all time the standards we require of our politicians at the beginning of the 21st century."

The current system of disclosure was working well, but this was being overlooked as people became focused on the issue of "whether the time has come for a fundamental shift in policy involving the introduction of a ban on corporate donations".

It was clear to the Minister that "any moves to restrict or ban private contributions to political parties require very careful consideration. The issues involved are central to the workings of the political system and to democracy itself in this country."

Mr John McGuinness (FF, Carlow-Kilkenny) said there was a need to look at the structures and activity of almost every local authority to see if there was any wrongdoing outside the Dublin area. That had to happen because there was a need to repair the body politic and to put in the appropriate sanctions for officials as well as politicians.