Sharp clash emerging over terms of reference for tribunal

The Government is expected to begin discussions with the Opposition parties tomorrow on a new tribunal's terms of reference to…

The Government is expected to begin discussions with the Opposition parties tomorrow on a new tribunal's terms of reference to inquire into politicians' finances. But sharp differences have emerged between Government and Opposition as to what it should investigate.

This morning's Cabinet meeting appears certain to approve in principle the establishment of a new tribunal. But over two weeks of argument between Government and Opposition are in prospect over its terms of reference.

The Government Chief Whip, Mr Seamus Brennan, will have discussions with the other party whips by telephone tomorrow in an attempt to minimise the differences.

The Taoiseach, Mr Ahern, is also expected to have talks with the leaders of the other Dail parties in advance of the Dail debate on the McCracken report on September 10th and 11th.

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However, last night the Fine Gael leader, Mr John Bruton, stated his opposition to the form of tribunal that appears to be favoured by Fianna Fail Ministers. Fianna Fail sources say they would like a new tribunal to examine specific decisions made while Mr Charles Haughey and Mr Michael Lowry were in office, such as those relating to the beef industry, the Carysfort land deal, the Telecom site and the award of the State's second GSM mobile phone licence.

Mr Bruton said last night that this would be a mistake and could involve time-wasting. He favoured a broad investigation of Mr Haughey's finances to "reveal the identity of all the donors who may have assisted Mr Haughey financially over the past 25 years."

It would then be possible, he said, to find out if specific donors had benefited in any way from decisions taken by Mr Haughey or his governments.

Meanwhile, the Democratic Left TD, Mr Pat Rabbitte, has said that a new tribunal must also investigate the payment of money to Mr Ray Burke by a construction firm in 1989. Mr Burke has insisted that this was a legitimate political contribution of £30,000.

With Fianna Fail likely to resist these Opposition demands, there is likely to be intensive negotiation between now and the Dail debate on the McCracken report. Mr Seamus Brennan said yesterday that the Government wants as much agreement as possible on the terms of reference, but conceded that all-party agreement may not be possible.

The Government is understood to favour the Dail passing a motion to set up a new tribunal on September 11th.

The Attorney General will brief the Cabinet today on the legal issues involved in the framing of terms of reference for a new tribunal. All Ministers now accept the inevitability of a new tribunal, according to Government sources.

The Progressive Democrats will be represented at the Cabinet meeting by the Minister of State, Mr Bobby Molloy. A definitive statement of the PD position on a new tribunal's terms of reference is not expected until the party leader, Ms Harney, returns from an industrial promotion trip to the United States in advance of next Tuesday's Cabinet meeting. Today's meeting will have only a preliminary discussion and will agree in principle to establish a new tribunal. Tanaiste, Ms Harney, no more detailed decisions will be made at least until next Tuesday's Cabinet meeting, while the terms of reference will be decided some time after that.

Last night Mr Bruton warned against "a long, wandering, expensive and inconclusive inquiry, or series of inquiries, flowing from the McCracken report. Any formal inquiry, or inquiries, should be tightly focused."

He said a new tribunal should not begin its investigations "at the other end of the process, as some suggest, by looking into particular publicised transactions. Singling out certain transactions in advance stigmatises all the individuals involved, some of whom might have been willing to co-operate voluntarily."

The "money trail" and not the Government decisions should be investigated first, he said. Fianna Fail sources pointed out that Mr Bruton's proposal would avoid any investigation of decisions made by Mr Michael Lowry, who as Minister for Transport, Energy and Communications in Mr Bruton's government awarded the State's second GSM mobile phone licence in circumstances that have since become controversial.

Mr Bruton said party leaders in the Dail, or the Dail itself, should call on Mr Haughey to reveal to a designated public official, such as the Ceann Comhairle or the Ombudsman, all details he has on the financing of his lifestyle over the past 25 years.

A Green Party TD, Mr John Gormley, has urged that a new tribunal must include examination of planning-related corruption and bribery. He said both Fianna Fail and the PDs had received substantial donations from developers and were opposed to including planning matters in the brief of a new tribunal. But he said the Greens would "expose their attempts to evade public scrutiny of these important matters".