The Government is to agree in principle to the establishment of a new tribunal of investigation into the financial affairs of politicians when the Cabinet meets tomorrow.
But, in the absence of the Tanaiste and Minister for Enterprise and Employment, Ms Harney, a final decision on the terms of reference for the tribunal will be deferred until next week.
The Progressive Democrats will be represented at the meeting by Minister of State to the Government, Mr Bobby Molloy.
It is understood that the Progressive Democrats leader was prepared to cut short her official visit to North America to attend tomorrow's Cabinet meeting, if formal decisions were to be taken. Following contact yesterday with the Taoiseach, however, the Tanaiste decided to complete her industrial promotion schedule and to return home on Saturday.
The Attorney General, Mr David Byrne SC, is due to report to Cabinet on the possible legal difficulties an inquiry into Mr Haughey's financial affairs over the past 20 years might face, compared to an inquiry into specific Government decisions that may have been improperly influenced.
He will also indicate that legislation to establish a permanent commission of inquiry, which would investigate allegations of political corruption, is unlikely to be ready until November.
Initial reservations by Fianna Fail Ministers concerning the establishment of a new tribunal, following publication of the McCracken report on Monday, have now given way to a general acceptance that a fresh and early investigation is required.
The Minister for the Environment and Rural Development, Mr Dempsey, said yesterday that no differences existed between Fianna Fail and the PDs on whether there should be a new tribunal to investigate possible political impropriety.
The work of such a tribunal would, however, have to be sharply focused on decisions taken while Mr Charles Haughey and Mr Michael Lowry held office, he said.
Mr Dempsey also undertook to consider Mr Justice McCracken's recommendations when he reviewed the provisions of the Electoral Act. The Government had not yet taken a decision on the State funding of political parties, he said.
While the Government parties have reached broad agreement on the need for a new tribunal, significant differences remain over possible terms of reference and the extent of any new inquiries. An announcement concerning these matters may not be made until the Dail is recalled to debate the McCracken report on September 10th and 11th.
The former leader of the PDs, Mr Des O'Malley, has publicly called for a thorough investigation into all of Mr Haughey's financial affairs and into controversial government decisions taken during his periods as Taoiseach. Whatever agreement is reached by Fianna Fail and the Progressive Democrats over the establishment of a new inquiry is unlikely to satisfy the opposition parties. Fine Gael, the Labour Party and Democratic Left have demanded the broadest possible investigation of Mr Haughey's affairs, and that of his ministers, during his period as Taoiseach. They will also insist that any political payments made to Mr Ray Burke be included within the terms of reference.
Last night, the Democratic Left whip, Mr Pat Rabbitte, urged the Government to consult with opposition parties before the terms of reference were announced.
Mr Rabbitte said Fianna Fail's proposal to establish "an ill-defined, on-going Commission" - despite Mr Justice McCracken's dismissal of the idea - was designed only to muddy the waters".