THE seriousness of the situation now facing the Government was immediately evident to deputies of all parties yesterday. Few, however, would make any public comment on yesterday's newspaper report on Mr Lowry in advance of the explanatory statement the Minister promised last night.
Both Fianna Fail and the Progressive Democrats issued statements seeking clarification from Mr Lowry on the allegations. But deputies generally said they would wait for the substantive reply before commenting.
The Minister's difficulty was in his private business arena but it was one which he had to explain and which the Taoiseach, Mr Bruton, would have to deal with eventually.
The chairman of the Labour Party, Mr Jim Kemmy, said his party would be meeting on Wednesday and would no doubt be discussing the Minister's response. It would be wrong to prejudge what he was going to say but at this stage he was disturbed by the allegations.
Yet there was a general belief around Leinster House that the situation was a very serious one and that if Mr Lowry did not resign it would be extremely difficult for the two smaller parties in the Coalition, Labour and Democratic Left, to continue in government.
One senior member of Fine Gael said there was a unanimous feeling in political circles that Mr Lowry had to go.
"We cannot judge until he replies to the allegations but it looks bad and there could be a tax issue. The hope here is that if he has to go it will not be because Lab our demand it but on his own initiative.
"If it is wrongdoing of a serious nature he should go, but natural justice says he has to be allowed explain himself. But will things be done before the Taoiseach goes to Lisbon on Sunday?"
A PD deputy expressed surprise at Mr Bruton's reaction at lunchtime, when he accepted that the allegations referred to a time before Mr Lowry was in Cabinet. "I can't see any way he can stay; his position is untenable," the PD deputy said.
A senior Fianna Fail deputy said The party would be seeking a full, personal statement to the Dail next week. There was a general perception, he said, that it was only a matter of time before Mr Lowry "came a cropper".
"This is dynamite if he can't explain it properly. He will have to have a very good explanation if he is to survive."
A Labour backbencher said that it was difficult to say anything until Mr Lowry issued his response,
Several other deputies, from various parties, said they were reluctant to comment when Mr Lowry had not yet made a full statement.
A number said that three matters were vital - the revenue aspect, what exactly Mr Lowry's relationship was with Mr Ben Dunne, and the attitude of the Taoiseach.