Talks fail to resolve political donations controversy

The Taoiseach, Mr Ahern, said yesterday that he believed there was no public support for full state funding of the political …

The Taoiseach, Mr Ahern, said yesterday that he believed there was no public support for full state funding of the political system. He was speaking after the leaders of the main parties failed to reach agreement on the controversial issue of banning corporate donations.

Mr Ahern and the Tanaiste, Ms Harney, told the opposition leaders during a 11/2-hour meeting in Government Buildings that the Government would set out a timetable in the coming week for the enactment of comprehensive legislation to deal with corruption and political donations by the end of the year. ail tomorrow night.

In a statement, the Taoiseach and the Tanaiste said that the Labour Bill would be considered at today's Cabinet meeting. However, the opposition proposals raised a number of constitutional issues which would have to be examined.

The Taoiseach and Tanaiste also expressed concern about the impact of a complete ban on corporate donations on independents, small political parties and new parties.

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Meanwhile, the interim report of the Fianna Fail inquiry into payments to politicians is now expected to be published by the end of next week.

Mr Liam Lawlor, the Dublin West Fianna Fail TD, is due to be interviewed by the party's inquiry team tomorrow.

Mr Lawlor, who has admitted receiving payments from the lobbyist Mr Frank Dunlop, has said he intends to answer all questions put to him at the inquiry about the payments he received from Mr Dunlop.

The Fianna Fail Standards in Public Life Committee, which is conducting the inquiry, may recommend sanctions against at least one politician in its interim report.

The committee has the power to recommend expulsion from the Fianna Fail party.

It is understood that another Dublin Fianna Fail TD will face questions at the inquiry about substantial payments he received from Mr Dunlop.

A third Fianna Fail TD, Ms Marian McGennis, has denied receiving substantial payments from Mr Dunlop. She has said she received £1,400 towards election expenses, which she has declared to the Flood tribunal and to the party's internal inquiry.

Some politicians may be called back for further interviewing by the Fianna Fail inquiry team later this week before publication of the interim report.

The Taoiseach said yesterday that the committee would finish its work next week.

Mr Ahern also said that rezoning decisions taken by Dublin County Council in the early 1990s may be revoked if it is shown that they were the result of "absolute corruption".

He added: "All of these things will have to be looked at. I wouldn't rule it in or out. If someone got a planning permission because of absolute corruption, the matter would have to be looked at."

On the question of state funding for political parties, Mr Ahern said: "If there is a groundswell of support from the public to pay for that, I am not hearing it, and polls done by the newspapers have shown that it is not there. To say that all of the costs of the party political democratic system should be taken on by the taxpayer is not something I see enormous support for."

The two Government parties will outline their position on all aspects of political funding at the start of tonight's Dail debate.

The Government parties will vote against the Labour Bill tomorrow night. It is expected that the four Independents who support the Government will also vote against. They are due to meet the Government chief whip, Mr Seamus Brennan, today to discuss the matter.

Ms Mildred Fox, Independent TD for Wicklow, told The Irish Times last night that she would not decide how to vote until she had met the Chief Whip and studied the Labour Bill.