In a statement last night the Tanaiste, Ms Harney, said that she had accepted the appointment of Mr Ray Burke as a minister last July on the basis of assurances she had received from the Taoiseach in relation to the payment of £30,000 to Mr Burke.

The assurances she had sought related to the payment of that money and allegations that favours had been sought or had been given in return. She had accepted those assurances from the Taoiseach.

The confirmation yesterday of a second payment of £30,000 to Mr Burke while he was a minister in 1989 raised serious questions which required further investigation, she said.

"I first became aware of the payment by the Fitzwilton subsidiary, Rennicks, to Ray Burke when I was informed by the Taoiseach last Tuesday, May 26th.

"Prior to that, I had no knowledge whatsoever of the fact that this contribution was included in the documents disclosed to the Planning Tribunal by Fianna Fail in March of this year.

"Neither was I aware that the £10,000 that Ray Burke paid to Fianna Fail before the 1989 general election was from Rennicks." Ms Harney added: "I note from today's Dail debate that a number of politicians received anonymous letters in 1997 making allegations in relation to a Rennicks payment to Mr Burke. I received no such letter.

"I believe that the new allegations now in the public domain should be investigated fully and no option should be ruled out in establishing the full facts."