Harney unaware of loans from friends

Harney reaction: Minister for Health Mary Harney confirmed yesterday that Taoiseach Bertie Ahern told her "just before the summer…

Harney reaction: Minister for Health Mary Harney confirmed yesterday that Taoiseach Bertie Ahern told her "just before the summer" that the Mahon tribunal was in touch with him in relation to his legal separation.

Ms Harney, who was tánaiste at the time, said however that she did not attach significance to it as there were lots of people called before tribunals.

Furthermore she said nothing should be read into the present Tánaiste, Michael McDowell, not being in the Dáil chamber for the order of business yesterday. "As I understand it, the Taoiseach was anxious to come into the House today to clarify issues and that's what he did in relation to his house. So clearly if the Taoiseach was taking the order of business, the issue of Michael McDowell taking it didn't arise."

Asked if there was a particular reason why Mr McDowell was absent from the Chamber during the order of business she said: "I don't know, to be honest with you, why he was absent. I mean he wouldn't always necessarily just go into the Chamber, to be fair. I mean I was at a conference myself. I got back in the middle of the order of business - well, it had just begun and I saw it on the monitor I wouldn't read any significance into him not being in the Chamber, to be honest with you. As far as I know, he is doing his ministerial duties."

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On her prior knowledge of Mr Ahern's difficulties with the tribunal before the current controversy broke she said: "The Taoiseach did tell me that he was in correspondence with the tribunal in relation to the issues around the Starry O'Brien allegation and he also showed me the fictitious Deutsche Bank in Mauritius correspondence which he published the other day.

And just before the summer the Taoiseach told me that the tribunal were in touch with him in relation to his legal separation and that there was going to be litigation. He did tell me that but I wasn't aware of his personal financial arrangements or about loans or money. I wasn't aware of that. I think the Taoiseach may have misunderstood or I don't think he meant anything as I understand it what he said was that he thought he had told me that but he hadn't.

"And [ Irish Times Editor] Geraldine Kennedy hadn't told me either, by the way, which Caoimhghín Ó Caoláin alleged. I think it's very unlikely that any journalist that has that kind of information is going to be passing it on to a politician."

Speaking to reporters after attending a nursing conference in Tullamore, Ms Harney also said she hoped the current controversy could soon be resolved so that the Government could move on to deal with other issues.

"This has been going on now for two weeks, almost to the day I think, and obviously that's not good for anybody but hopefully we can resolve these matters and move on to deal with all the other issues. I'm certainly dealing with health. I haven't been distracted from that, notwithstanding these political events that are dominating the media. But I mean it just shouldn't have happened, quite honestly."

Asked if the PDs had been damaged by the affair she said: "The PDs have provided nine years of stable government. We have a very good relationship with the Taoiseach. I had a terrific relationship with the Taoiseach. I'd like to think that we are fair and reasonable in all these circumstances.

And Michael McDowell has spoken on behalf of the party after a meeting on Tuesday and previously, and the Taoiseach was given an opportunity in the Dáil to explain matters as they arose and I think that was appropriate. The Progressive Democrats are, as any smaller party are, always in a difficult position in an issue like this where you get conflicting advice. At the end of the day you have to make your own judgment in relation to these matters, and that's what we did."

Questioned as to whether this judgment had changed as a result of latest reports about who Mr Ahern bought his house from, she said it hadn't, pointing out that Mr Ahern said he paid full market value for his home.