Opposition parties have broadly welcomed the Taoiseach's decision to have a tribunal investigate the planning history of 726 acres of land in north Co Dublin, but say it is a U-turn. Fine Gael, Labour and Democratic Left called for the issue to be investigated by the Moriarty tribunal, set up to examine decisions made by Mr Charles Haughey and Mr Michael Lowry when in office.
Meanwhile, the Green Party has expressed outrage that Mr Burke is to remain as Minister for Foreign Affairs while the tribunal is in place.
Fine Gael's chief whip, Mr Sean Barrett, yesterday called on the Government to accept the terms of the opposition motion, voted down by it two weeks ago, which would allow the Moriarty tribunal to conduct a preliminary investigation of the £30,000 donation to Mr Burke in 1989.
"The Taoiseach appears now to be accepting the need for an independent judicial examination of this donation and the more recent revelations contained in the Bailey letter," Mr Barrett said. Allowing the Moriarty tribunal to examine the matter would be "the most practical, speedy and effective way to have this matter investigated".
He said Fine Gael would "co-operate in any investigation of any irregularities that might have occurred in order to ensure that public confidence is restored in both the planning process and the political system".
Labour's chief whip, Mr Brendan Howlin, said his party wanted to see what was being proposed before deciding its stance. His party also favoured asking the Moriarty tribunal to conduct a preliminary investigation rather than setting up a new tribunal.
"The facts are that the Minister for Foreign Affairs got £30,000 when two people visited his house, while a few days previously one of them said that he could procure planning permission. That needs to be addressed, and quickly put to bed," he said.
The Democratic Left environment spokesman, Mr Eamon Gilmore, said the Taoiseach's decision, which he welcomed, was "a humiliating climb-down . . . especially for the Tanaiste, Mary Harney, who has given such unquestioning public support to Mr Burke".
He urged Mr Ahern to consult the opposition parties over the terms of reference for this tribunal. "It is essential that the Dail and the public are satisfied that the terms of reference are adequate to allow all relevant matters to be inquired into. There must be no question of anything being brushed under the carpet to avoid potential political embarrassment to the Government parties."
The Green Party TD, Mr John Gormley, said his party had always assumed Mr Burke "would automatically step aside" if a tribunal of inquiry was established to deal with the payment to him. The decision to allow him to continue was incomprehensible, he said.
"Of all our Ministers Mr Burke is probably charged with the most important task of all in dealing with the delicate all-party talks and the future of Northern Ireland. Minister Burke broke down in the Dail two weeks ago under very little questioning from the opposition. If he was so disturbed at that stage it is hard to imagine that he would be in a fit state of mind to deal with his duties as our Minister for Foreign Affairs."